OB System Co., Ltd. (TSE: 5576) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue rose 12.6% year-on-year to ¥8,655 million, while operating profit climbed 19.5% to ¥672 million from ¥562 million. Ordinary profit advanced 19.2% to ¥728 million, and net profit attributable to owners of the parent rose 23.9% to ¥601 million from ¥485 million. Basic EPS came in at ¥259.43 versus ¥210.57 a year earlier. The Osaka-headquartered IT services and systems-integration company also posted comprehensive income of ¥742 million, up 28.3%.
Margins widen as the systems-integration business scales
OB System provides software development, systems integration and IT infrastructure services to corporate and public-sector clients. Top-line growth of 12.6% comfortably outpaced FY3/2025, and the operating margin expanded to 7.8% from 7.3% as the company converted higher project volume into improved profitability. The ratio of ordinary profit to sales improved to 10.3% from 9.9%, while return on equity rose to 11.1% from 9.9% — evidence that the group is generating progressively better returns on its largely debt-free capital base.
Fortress balance sheet
OB System ended the year with total assets of ¥7,620 million, up from ¥6,471 million, and net assets of ¥5,698 million, against ¥5,113 million a year earlier. The equity ratio stood at 74.8% (down slightly from 79.0% as the balance sheet grew), reflecting a conservatively financed, cash-rich profile typical of mid-cap Japanese software houses. Book value per share rose to ¥2,450.13 from ¥2,218.09.
Cash flow and capital returns
Operating cash flow came in at ¥461 million, while investing activities used ¥444 million and financing activities used ¥184 million, leaving period-end cash and equivalents at ¥2,242 million, up from ¥2,038 million. Reflecting the stronger earnings, the company raised its annual dividend to ¥105.00 per share (¥50.00 interim + ¥55.00 year-end), up from ¥80.00, for a consolidated payout ratio of 40.5%. The year-end dividend was itself increased from a planned ¥50 to ¥55, announced the same day in a separate dividend-increase notice.
Subsequent event: Green Cat joins the group
OB System flagged a material change in its scope of consolidation: Green Cat Co., Ltd. was newly added to the consolidated group during the year, with no companies excluded. The acquisition broadens the group's service portfolio and underpins management's confidence in further top-line expansion into FY3/2027.
FY27 guidance: double-digit growth and a ¥10 billion revenue target
For FY3/2027, management guides to revenue of ¥10,000 million (+15.5%), operating profit of ¥835 million (+24.2%), ordinary profit of ¥900 million (+23.5%), and net profit attributable to owners of ¥720 million (+19.8%), implying basic EPS of ¥309.20. The company also forecasts a further increase in the annual dividend to ¥125.00 per share (¥60.00 interim + ¥65.00 year-end), with a payout ratio of 40.4% — keeping shareholder returns broadly in step with the expected earnings growth.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 8,655 | 7,684 | +12.6% |
| Operating profit (¥ million) | 672 | 562 | +19.5% |
| Ordinary profit (¥ million) | 728 | 611 | +19.2% |
| Net profit attrib. to owners (¥ million) | 601 | 485 | +23.9% |
| Basic EPS (¥) | 259.43 | 210.57 | +23.2% |
| Operating margin | 7.8% | 7.3% | +0.5pp |
| ROE | 11.1% | 9.9% | +1.2pp |
| Equity ratio | 74.8% | 79.0% | -4.2pp |
| Annual dividend (¥) | 105.00 | 80.00 | +31.3% |
| FY27 revenue guidance (¥ million) | 10,000 | — | +15.5% |
| FY27 operating profit guidance (¥ million) | 835 | — | +24.2% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.