SRE Holdings (2980): FY2025 Results Summary — Record Sales for a 7th Straight Year, Operating Profit +34.5%

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SRE Holdings Corporation reported record consolidated net sales for a 7th consecutive year since listing in FY2025, driven by profitability-focused order intake and improved productivity. Net sales rose 23.1% year on year to 32,858 million yen, operating profit grew 34.5% to 4,180 million yen, and profit attributable to owners of the parent increased 8.5% to 1,840 million yen after absorbing impairment losses. EBITDA reached 4,964 million yen (+30.2%) and ROE was 12.7%. The company raised the annual dividend to 18.0 yen per share (up 3.0 yen) and, for FY2026, guides to further record highs with net sales of 41,800 million yen and operating profit of 5,230 million yen.

Note: In this article, FY2025 refers to the fiscal year ended March 31, 2026, and FY2026 to the following fiscal year, following the labeling used in the company’s source presentation.

Consolidated Results (Full-Year Actual)

AICC ensured disciplined, profitability-focused order intake, while L&P strategically shifted the timing of certain large asset disposals into the next fiscal year; revenue still grew 23.1% year on year. Operating profit rose 34.5%, significantly outpacing revenue growth as the group moved into a high-margin phase, mainly on enhanced AICC profitability. Net income increased 8.5% despite impairment losses recorded in connection with a business-portfolio restructuring aimed at improving ROE over the medium to long term.

Item (¥ Million)	FY2024	FY2025	YoY
Net sales	26,690	32,858	+23.1%
Operating profit	3,107	4,180	+34.5%
EBITDA	3,813	4,964	+30.2%
Ordinary profit	2,903	3,841	+32.3%
Profit attributable to owners of parent	1,697	1,840	+8.5%
Dividend per share	15.0 yen	18.0 yen	+3.0 yen
ROE	–	12.7%	▲0.4pt

Segment Results

Both the AI Cloud & Consulting (AICC) and Life & Property Solutions (L&P) segments grew, with AICC profit expansion significantly enhancing overall profitability. AICC net sales rose 15.5% while segment profit expanded 41.0%, reflecting a high-margin model that integrates SaaS with consulting and BPO services. In L&P, profit exceeded guidance on rent-enhancement initiatives even though some large asset disposals were shifted to the following fiscal year. (Figures are before elimination of intra-group and inter-segment transactions.)

Segment	Metric (¥ Million)	FY2024	FY2025	YoY
Total	Net sales	26,690	32,858	+23.1%
Total	Operating profit	3,107	4,180	+34.5%
AICC	Net sales	7,525	8,689	+15.5%
AICC	Segment profit	2,464	3,474	+41.0%
L&P	Net sales	20,532	26,272	+28.0%
L&P	Segment profit	1,039	1,196	+15.1%

Within AICC, Life & Healthcare Solutions (LH) drove growth with revenue up 44.3% and segment profit up 87.1%, while Prop Tech Solutions (PT) revenue declined 10.9% under a deliberate shift toward a profitability-focused model; PT segment profit still rose 13.5% and its margin reached 49.9%. The AICC segment margin improved to 40.0%.

AICC sub-segment	Metric (¥ Million)	FY2024	FY2025	YoY
AICC total	Segment net sales	7,525	8,689	+15.5%
Life & Healthcare (LH)	Net sales	3,590	5,181	+44.3%
Prop Tech (PT)	Net sales	3,935	3,508	▲10.9%
AICC total	Segment profit (margin)	2,464 (32.7%)	3,474 (40.0%)	+41.0%
Life & Healthcare (LH)	Segment profit (margin)	921 (25.7%)	1,724 (33.3%)	+87.1%
Prop Tech (PT)	Segment profit (margin)	1,543 (39.2%)	1,750 (49.9%)	+13.5%

FY2026 Forecast

For FY2026 the company targets record highs across all profit levels, driven by growth in the core business, even after executing 4.0 billion yen in strategic reinvestment. Net sales are guided to 41,800 million yen (+27.2%) and operating profit to 5,230 million yen (+25.1%). Profit attributable to owners of the parent is expected to rise 53.8% to 2,830 million yen, aided by the absence of prior-year one-off restructuring losses. By segment, AICC net sales are guided to 11,000 million yen (+26.6%) and L&P to 30,800 million yen (+17.2%).

Item (¥ Million)	FY2025 (Actual)	FY2026 (Forecast)	YoY
Net sales	32,858	41,800	+27.2%
Operating profit	4,180	5,230	+25.1%
EBITDA	4,964	6,150	+23.9%
Ordinary profit	3,841	4,500	+17.2%
Profit attributable to owners of parent	1,840	2,830	+53.8%
Dividend per share	18.0 yen	20.0 yen	+2.0 yen

Segment	Metric (¥ Million)	FY2025	FY2026 (Forecast)	YoY
Total	Net sales	32,858	41,800	+27.2%
Total	Operating profit	4,180	5,230	+25.1%
AICC	Net sales	8,689	11,000	+26.6%
AICC	Segment profit	3,474	4,380	+26.1%
L&P	Net sales	26,272	30,800	+17.2%
L&P	Segment profit	1,196	1,500	+25.4%

Shareholder Returns

SRE Holdings balances high growth with stable dividend growth through segment-based capital allocation: AICC profits are prioritized for growth reinvestment, while stable L&P earnings fund dividends. The dividend criterion distributes approximately 35% of L&P adjusted net income (calculated as L&P segment profit x (1 – deemed tax rate) x 35%). The company has committed to progressive dividends since its initial payout in FY2025. Dividend per share was 15.0 yen in FY2024 and 18.0 yen in FY2025, with a FY2026 forecast of 20.0 yen.

Topics: Strategy and AUM

Assets under management (AUM) in the L&P business grew to 155.2 billion yen as of March 2026 (from 64.8 billion yen in FY2023 and 115.5 billion yen in FY2024), a recent CAGR of approximately 55%, establishing a recurring asset-management-fee base that supports dividend growth. Strategically, the company is advancing a BPaaS (Business Process as a Service) model built on industry-specific AI, positioning proprietary primary data from real-world operations to continuously enhance its AI. It also plans 4.0 billion yen of strategic reinvestment in FY2026 across next-generation AI operations, top talent (CTO and Forward Deployed Engineers), Physical AI initiatives, and a risk buffer, with underlying operating profit growth of 38% excluding these investments and buffers.

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.