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NOVA SYSTEM, Ordinary Profit Forecast for the Fiscal Year Revised Downward to an Unexpected 38% Decrease

Thu Jul 31, 2025 1:00 pm JST Earnings

5257 NOVA SYSTEM CO.,LTD. 【J-GAAP】

Earnings Report

NOVA SYSTEM CO.,LTD. <5257> [TSE Std] announced its financial results in the afternoon session on July 31st (13:00). The ordinary profit (non-consolidated) for the cumulative second quarter of the fiscal year ending December 2025 (January to June) significantly dropped 51.4% from the same period last year to 104 million yen, resulting in a decrease in profits compared to the previous forecast of a 7.9% increase.

In addition, the full-year forecast for ordinary profit has decreased 52.7%, from the previous forecast of 716 million yen to 339 million yen (compared to 551 million yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 38.5% decrease in profit.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the ordinary profit for the July to December period (second half) is expected to drop 30.3% from the same period last year to 235 million yen.

In the most recent three-month period, from April to June (2Q), the ordinary profit/loss turned to a loss of 3 million yen (compared to a profit of 54 million yen in the same period last year). The operating profit/loss margin drastically worsened from 3.2% in the same period last year to -0.5%.

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Actual Results

Accumulated Results 2nd Quarter
Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Progress Rate vs. First Half Announce Accounting Standards
Jan - Jun, 2023 2,590 239 226 153 116.6 46.8 Jul 31, 2023 J-GAAP
Jan - Jun, 2024 3,095 206 214 145 103.6 38.8 Jul 31, 2024 J-GAAP
Jan - Jun, 2025 3,294 87 104 69 50.0 30.7 Jul 31, 2025 J-GAAP
YoY +6.4% -57.8% -51.4% -52.4% -51.8%

First Half Results vs. Previous Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jan - Jun, 2025 Guidance 3,312 217 231 149 106.8 0 Feb 13, 2025 J-GAAP
Jan - Jun, 2025 Results 3,294 87 104 69 50.0 0 Jul 31, 2025 J-GAAP
Revision Rate -0.5% -59.9% -55.0% -53.7% -53.2%

Guidance Update

Full Year Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2025 Prev 7,307 677 716 461 330.5 105 Feb 13, 2025 J-GAAP
Dec, 2025 New 6,666 298 339 209 149.8 105 Jul 31, 2025 J-GAAP
Revision Rate -8.8% -56.0% -52.7% -54.7% -54.7%

Current Period Guidance

Second Half Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jul - Dec, 2024 3,366 322 337 249 177.9 0 Feb 13, 2025 J-GAAP
Jul - Dec, 2025 Guidance 3,372 211 235 140 100.4 105 Jul 31, 2025 J-GAAP
YoY +0.2% -34.5% -30.3% -43.8% -43.6%

Current Period Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2023 5,422 490 483 342 251.6 0 Feb 14, 2024 J-GAAP
Dec, 2024 6,461 528 551 394 281.4 0 Feb 13, 2025 J-GAAP
Dec, 2025 Guidance 6,666 298 339 209 149.8 105 Jul 31, 2025 J-GAAP
YoY +3.2% -43.6% -38.5% -47.0% -46.8%

Quarterly Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Operating Profit Margin Announce Accounting Standards
Apr - Jun, 2024 1,511 48 54 36 25.7 3.2 Jul 31, 2024 J-GAAP
Jul - Sep, 2024 1,649 123 125 85 60.7 7.5 Oct 31, 2024 J-GAAP
Oct - Dec, 2024 1,717 199 212 164 117.1 11.6 Feb 13, 2025 J-GAAP
Jan - Mar, 2025 1,676 95 107 72 52.2 5.7 Apr 30, 2025 J-GAAP
Apr - Jun, 2025 1,618 -8 -3 -3 -2.2 -0.5 Jul 31, 2025 J-GAAP
YoY +7.1% － － － －

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