SERAKU (6199): FY2025 Results Summary — Digital Integration Lifts Sales 11.5% and Operating Profit 12.2%

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

SERAKU Co., Ltd. reported net sales of 24,776 million yen for the fiscal year ended August 31, 2025 (labeled FY25 / FY8/25 in the company’s materials), up 11.5% year on year, and operating profit of 2,550 million yen, up 12.2%. The company attributes the increase in net sales to rising unit prices for projects and a stably high engineer utilization rate, and the increase in operating profit to the promotion of the utilization of business partners, which led to a decrease in hiring and education costs and idle costs for engineers. For FY8/26, SERAKU plans net sales of 27,400 million yen (YoY +10.6%) and operating profit of 2,850 million yen (YoY +11.7%).

Consolidated Results (Full-Year Actual)

Net sales rose 2,554 million yen (+11.5%) to 24,776 million yen, gross profit rose 756 million yen (+13.3%) to 6,456 million yen, and operating profit rose 276 million yen (+12.2%) to 2,550 million yen. Ordinary profit was 2,599 million yen (+12.1%) and profit attributable to parent was 1,709 million yen (+8.5%). Against the FY25 plan, net sales exceeded the 24,500 million yen plan by 276 million yen (+1.1%), operating profit matched the 2,550 million yen plan (0 / 0), ordinary profit exceeded the 2,550 million yen plan by 49 million yen (+1.9%), and profit attributable to parent fell short of the 1,720 million yen plan by 10 million yen (-0.6%).

Item (millions of yen)	FY24 results	FY25 results	YoY change (amount)	YoY change (rate, %)
Net sales	22,221	24,776	+2,554	+11.5
Cost of sales	16,521	18,320	+1,798	+10.9
Gross profit	5,700	6,456	+756	+13.3
Selling, general and administrative expenses	3,426	3,905	+479	+14.0
Operating profit	2,273	2,550	+276	+12.2
Ordinary profit	2,317	2,599	+281	+12.1
Profit attributable to parent	1,575	1,709	+133	+8.5

Segment Results

In the Digital Integration segment, the company says it expanded the business and generated high added value through the utilization of business partners, achieving growth in both net sales and operating profit while making advance investments in its services. Within the segment, System Integration net sales rose 10.4% to 16,325 million yen and Digital Transformation net sales rose 15.2% to 7,554 million yen. Midori Cloud net sales edged down 1.1% to 235 million yen with a wider segment loss of 189 million yen, as the company focused resources on expanding sales of Midori Cloud Rakuraku Shukka as advance investments. Mechanical Design and Engineering net sales rose 5.5% to 786 million yen, while segment profit fell 18.8% to 36 million yen. The consolidated operating profit margin was 10.3% in FY25 versus 10.2% in FY24; the Digital Integration margin was 11.2% versus 10.9%, and the Mechanical Design and Engineering margin was 4.6% versus 6.0%.

Item	Segment	FY24 results	FY25 results	YoY change (amount)	YoY change (rate, %)
Net sales (millions of yen)	Total	22,221	24,776	+2,554	+11.5
Net sales (millions of yen)	Digital Integration	21,342	23,880	+2,537	+11.9
Net sales (millions of yen)	Digital Integration — System Integration	14,785	16,325	+1,540	+10.4
Net sales (millions of yen)	Digital Integration — Digital Transformation	6,557	7,554	+997	+15.2
Net sales (millions of yen)	Midori Cloud	238	235	-2	-1.1
Net sales (millions of yen)	Mechanical Design and Engineering	745	786	+41	+5.5
Net sales (millions of yen)	Adjustment	-104	-125	-21	–
Segment profit/loss (millions of yen)	Total	2,273	2,550	+276	+12.2
Segment profit/loss (millions of yen)	Digital Integration	2,320	2,683	+362	+15.6
Segment profit/loss (millions of yen)	Midori Cloud	-109	-189	-80	–
Segment profit/loss (millions of yen)	Mechanical Design and Engineering	44	36	-8	-18.8
Segment profit/loss (millions of yen)	Adjustment	17	20	+2	+16.0

Progress on the Growth Strategy

For FY25 4Q, the company reported 2,061 partner companies registered on the SERAKU Partner Platform (YoY +1,038 companies), a ratio of the DX domain to net sales of 29.5% (YoY -1.1%), and a ratio of quasi-mandate/contracting projects to orders received of 51.2% (YoY +4.6%). On a full-year basis, the sales percentage in the DX domain was 30.3% in FY25 against 29.5% in FY24 and 26.5% in FY23, while orders received by contract type in FY25 comprised 9.7% contracting and 41.0% quasi-mandate. The company also reports that the number of engineers, which combines in-house engineers and working partner engineers from FY24 onward, was 3,356 in FY25 4Q against 3,413 in FY25 3Q and 3,317 in FY24 4Q, and that the engineer utilization rate was 96.8% in FY25 4Q against 98.5% in FY24 4Q.

FY8/26 Plan

SERAKU positions the fiscal year ending August 2026 as Step 1, the foundation-building phase, in its “Transformation into an AI Service Company” roadmap. The plan calls for net sales of 27,400 million yen and operating profit of 2,850 million yen. The materials show a CAGR of +12.4% for net sales and +16.0% for operating profit from FY21 (net sales 15,263 million yen, operating profit 1,356 million yen) to the FY26 plan.

Item (millions of yen)	FY26 plan	FY25 results	YoY change (rate, %)
Net sales	27,400	24,776	+10.6
Operating profit	2,850	2,550	+11.7

Shareholder Returns

Dividend per share was 13.20 yen for FY25, and the company expects DPS for FY26 to increase to 17.40 yen due to performance-linked dividends and the retirement of treasury shares; the materials state that DPS is expected to increase by 0.50 yen due to 16.90 yen in performance-linked dividends and a decrease in the number of shares through the retirement of treasury shares. Per-share dividend amounts are stated after adjustment for the four-for-one stock split conducted on March 1, 2017, and the company notes that DPS has increased by over 7 times since it went public. On treasury shares, an acquisition of 309,000 shares for 399,106,700 yen ran from August 9, 2024 to April 17, 2025 and is completed, and a further acquisition with an upper limit of 400,000 shares and 400,000,000 yen is in progress from August 8, 2025 to July 31, 2026. Retirements of 165,000 shares on August 20, 2024 and 155,000 shares on August 20, 2025 have been completed. The stated purposes are profit return to shareholders, implementation of a flexible capital policy, utilization in M&As, and utilization in incentive plans.

Per-share indicator (yen)	FY24	FY25	FY26 (Plan)
DPS (dividend per share)	13.00	13.20	17.40
EPS (earnings per share)	114.24	127.16	–
BPS (book-value per share)	572.00	668.83	–

Medium-Term Growth Vision and AI Strategy

SERAKU states that it will transform into an “AI Service Company” within the next 3–5 years and achieve profit growth through the transition of operational businesses to AI services and DX promotion driven by AI talent. Step 1, the current foundation-building phase, focuses on beginning AI service development (IT operation automation, productivity improvement in project work, support for cloud system operation) and developing AI talent. Step 2, the AI transition phase, covers transitioning operation and SI businesses to AI services and promoting automation of operations. Step 3, the AI service phase, targets transformation into a provider of high-value-added services through “AI services + AI talent” in the SI and DX domains. The company also says that, in light of the progress in AI technologies and consequent changes in the business environment, it will review the Medium-Term Growth Vision and will inform investors of the revised vision as soon as its assessment of the changes is complete.

Topics

In the Midori Cloud business, the company reports that multiple JA organizations newly decided to introduce Midori Cloud Rakuraku Shukka and that introduction trials are under way or under consideration at multiple JA organizations, although the lead time for implementation is longer than expected. Subsidy income associated with the introduction of Midori Cloud Rakuraku Shukka was recorded as non-operating income. The service alone aims to achieve monthly profitability within two years, and the company aims to reach 70 million use cases in FY29, conducting marketing targeting 496 JA organizations across the country. On M&A, SERAKU states that it will seek co-creative M&As with companies that are highly compatible with it, citing AND Think Corporation (Nagoya City, Aichi Prefecture; contracted system development) and MIND CO., LTD. (Kawasaki City, Kanagawa Prefecture; system development, intra-mart) as recent cases. As of August 31, 2025, the company had capital of 312,433 thousand yen and 3,276 employees on a consolidated basis, and is listed on the Tokyo Stock Exchange Standard Market.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.