SRA Holdings (3817): FY2025 Results Summary — Higher Sales and Record Profits; Net Income Up 65.8%

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

Note: SRA Holdings, Inc. does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials (the results briefing materials for the most recent full fiscal year), with figures transcribed as reported. SRA Holdings’ fiscal year ends in March; following this site’s convention, the fiscal year ended March 2026 is classified as FY2025, while the body text and tables below keep the company’s own labels (FY3/2026 = fiscal year ended March 2026; FY3/2027 = fiscal year ending March 2027).

In May 2026, SRA Holdings, Inc. (securities code: 3817) published its results briefing materials for FY3/2026 (full year). Consolidated net sales were 53,279 million yen (up 3.2% year on year), operating profit was 8,244 million yen (up 3.8%), ordinary profit was 9,500 million yen (up 16.9%) and net income was 5,601 million yen (up 65.8%), with net sales, gross profit, operating profit, ordinary profit and net income all reaching record highs (a record for the fifth consecutive year for net sales, the fifth consecutive year for gross profit and the seventh consecutive year for operating profit). For FY3/2027, the company plans net sales of 55,500 million yen and operating profit of 8,600 million yen.

Consolidated Results (FY3/2026 Actual)

In FY3/2026, the gross profit margin improved from 25.5% to 25.8%, and operating profit was 8,244 million yen (up 3.8% year on year). Ordinary profit was 9,500 million yen (up 16.9%), due in part to a foreign exchange gain of 722 million yen in the current fiscal year, compared with a foreign exchange loss of 171 million yen in the previous fiscal year. Net income was 5,601 million yen (up 65.8%), owing to a decrease in the provision of allowance for doubtful accounts (from 1,587 million yen in the previous fiscal year to 223 million yen in the current fiscal year) and the elimination of the loss on valuation of investment securities (210 million yen in the previous fiscal year; none in the current fiscal year). Compared with the full-year forecast announced in May 2025, net sales were 0.4% below the forecast and operating profit was 0.7% below the forecast, roughly in line with the plan, while ordinary profit was 16.6% above the forecast and net income was 14.3% above the forecast, exceeding the initial plan.

Item	FY3/2025 (¥ million)	FY3/2026 (¥ million)	Change	Change (%)
Net sales	51,617	53,279	+1,662	+3.2%
Gross profit	13,179	13,743	+564	+4.3%
Gross profit margin	25.5%	25.8%	–	+0.3%
SG&A expenses	5,238	5,498	+260	+5.0%
SG&A ratio	10.1%	10.3%	–	+0.2%
Operating profit	7,940	8,244	+304	+3.8%
Operating margin	15.4%	15.5%	–	+0.1%
Ordinary profit	8,126	9,500	+1,373	+16.9%
Ordinary profit margin	15.7%	17.8%	–	+2.1%
Net income	3,377	5,601	+2,223	+65.8%

Net Sales by Segment (FY3/2026)

By segment, net sales increased in all of the Systems Development, System Operations and Infrastructure Development, and Product Sales businesses. In particular, the Product Sales segment at AIT increased substantially, helped in part by large projects for the financial industry. In the Systems Development business, sales to the financial industry increased, while some customers in the manufacturing industry were affected by factors such as economic stagnation in China, resulting in a relatively lower growth rate.

Segment	FY3/2025 (¥ million)	FY3/2026 (¥ million)	Change	Change (%)
Systems Development	25,601	25,889	+288	+1.1%
System Operations and Infrastructure Development	6,444	6,594	+149	+2.3%
Product Sales	19,571	20,795	+1,224	+6.3%
Total	51,617	53,279	+1,662	+3.2%

FY3/2027 Plan

For FY3/2027, the company says it will continue to aim for growth in sales and profits while responding flexibly to changes in the external environment. Ordinary profit and net income are planned to decrease year on year; this is because the company recorded a foreign exchange gain of 722 million yen in the previous fiscal year, whereas the forecast for the current fiscal year does not assume any foreign exchange gains or losses. Excluding the foreign exchange factor, the plan calls for higher sales and profits.

Item	FY3/2026 (Actual)	FY3/2027 (Plan)	Change
Net sales (¥ million)	53,279	55,500	+2,220
Gross profit (¥ million)	13,743	14,500	+756
Gross profit margin	25.8%	26.1%	+0.3%
SG&A expenses (¥ million)	5,498	5,900	+401
SG&A ratio	10.3%	10.6%	+0.3%
Operating profit (¥ million)	8,244	8,600	+355
Operating margin	15.5%	15.5%	+0.0%
Ordinary profit (¥ million)	9,500	9,000	-500
Ordinary profit margin	17.8%	16.2%	-1.6%
Net income attributable to owners of parent (¥ million)	5,601	5,500	-101
Earnings per share	443.34 yen	435.34 yen	-8.00 yen
Dividend per share	200.00 yen	220.00 yen	+20.00 yen

Shareholder Returns

The dividend per share for FY3/2025 was 180 yen (interim dividend of 80 yen + year-end dividend of 100 yen; the annual dividend was raised by 20 yen compared with both the initial plan and the previous year), with a payout ratio of 67.3% and a dividend yield of 4.1%. For FY3/2026, it was 200 yen (interim dividend of 90 yen + year-end dividend of 110 yen; the annual dividend was raised by 20 yen compared with both the initial plan and the previous year), with a payout ratio of 45.1% and a dividend yield of 4.3%. For FY3/2027, the company plans a dividend of 220 yen (plan; interim dividend of 100 yen + year-end dividend of 120 yen) with a payout ratio of 50.5%. The company targets sustainably securing a consolidated ROE of 10% or more; consolidated ROE was 17.4% in FY3/2026 and is forecast at 16.4% for FY3/2027. The company says it will continue to aim for “stable, high dividends” with a payout ratio of around 50% as a guideline.

Item	FY3/2025	FY3/2026	FY3/2027 (Plan)
Dividend per share	180 yen	200 yen	220 yen
Payout ratio	67.3%	45.1%	50.5%
Dividend yield	4.1%	4.3%	Not disclosed
Consolidated ROE	Not disclosed	17.4%	16.4% (forecast)

Topics (AI Initiatives)

The SRA Group is promoting the introduction of AI into its own IP products (the new UniVision, Cavirin, WIS and others) and the provision of AI-powered services for customers (AI365, SPSS and others). Its subsidiary AIT launched an IBM AI agent business and an AI-driven development business in fiscal 2025, and plans to launch an AI agent human resource development business and support services for the use of AI-driven development tools in fiscal 2026. In addition, each business division is advancing AI initiatives, including “WIS,” an inspection solution that combines camera image diagnostics with AI; the development of a karaoke smartphone app using generative AI; and a multi-agent system that supports migration from Oracle to PostgreSQL.

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.