SEC Co., Ltd. (TSE: 3741), the Tokyo-based developer of advanced real-time and embedded software systems for fields including space and satellites, robotics, autonomous systems, and mobile and network services, posted solid full-year results for FY2026 (April 2025 – March 2026) on May 12, 2026. On a non-consolidated basis, revenue rose 9.0% year-on-year to ¥11,220 million, while operating profit increased 4.8% to ¥1,879 million and ordinary profit climbed 8.9% to ¥2,062 million. Net profit advanced 12.3% to ¥1,509 million, up from ¥1,344 million the prior year. Earnings per share reached ¥147.89, against ¥131.79 a year earlier, while return on equity edged up to 15.4% from 15.2%.
Net profit growth comfortably outpaced revenue and operating-profit growth, reflecting a higher ordinary-profit margin and disciplined cost control. The faster bottom-line expansion lifted the net margin and underpinned the improved EPS, even as operating profit grew more modestly than the top line — a sign of project-mix and headcount investment in the company's specialist engineering base.
Real-time software demand spans space, robotics and mobile
SEC's growth is anchored in its core competency: real-time, mission-critical software where timing precision and reliability are paramount. The company develops control and processing software for space and satellite systems, motion and sensing software for robotics and autonomous systems, and high-throughput software for mobile and network services. Demand across these domains remained firm through FY2026 as customers continued to invest in satellite programs, automation, and next-generation connectivity. The breadth of SEC's end-markets — from aerospace to consumer-facing mobile infrastructure — gives the company diversified exposure to several of Japan's structurally growing technology themes, helping it lift revenue 9.0% in a year when many software peers faced project-timing volatility.
Balance sheet: 82.9% equity ratio, sharp cash-flow turnaround
SEC carries one of the strongest balance sheets in its peer group. Total assets rose to ¥12,435 million from ¥11,775 million, while net assets expanded to ¥10,313 million from ¥9,330 million, pushing the equity ratio to a very high 82.9% from 79.2% a year earlier — a near-debt-free capital structure that leaves ample room for investment, dividends, or buybacks. Net assets per share reached ¥1,010.13. Cash generation improved dramatically: operating cash flow swung to a positive ¥1,697 million from -¥250 million in FY2025, a turnaround that reflects healthier working-capital dynamics and earnings conversion. Investing outflows were modest at -¥46 million, while financing outflows of -¥561 million reflect dividend payments. Period-end cash and equivalents stood at ¥3,321 million.
Dividend ¥60 post-split; FY2027 guided for further growth
SEC declared a year-end dividend of ¥60 per share for FY2026, representing a payout ratio of 40.6%. A 1-for-2 stock split took effect on October 1, 2025, so all per-share figures are stated on a post-split basis; the pre-split-equivalent annual dividend is ¥120. Looking ahead, the company guided for FY2027 (ending March 2027) with revenue of ¥11,800 million (+5.2%), operating profit of ¥1,980 million (+5.3%), ordinary profit of ¥2,300 million (+11.5%), and net profit of ¥1,575 million (+4.3%), equivalent to EPS of ¥154.27. The company forecasts a dividend of ¥62 per share for FY2027, signalling continued shareholder returns alongside steady top-line and ordinary-profit growth.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 11,220 | 10,295 | +9.0% |
| Operating profit (¥ million) | 1,879 | 1,793 | +4.8% |
| Ordinary profit (¥ million) | 2,062 | 1,893 | +8.9% |
| Net profit (¥ million) | 1,509 | 1,344 | +12.3% |
| EPS (¥) | 147.89 | 131.79 | +12.2% |
| ROE | 15.4% | 15.2% | +0.2pp |
| Total assets (¥ million) | 12,435 | 11,775 | +5.6% |
| Equity ratio | 82.9% | 79.2% | +3.7pp |
| Operating cash flow (¥ million) | 1,697 | -250 | — |
| Annual dividend (¥, post-split) | 60 | — | — |
| FY2027 guidance — revenue (¥ million) | 11,800 | — | +5.2% |
| FY2027 guidance — operating profit (¥ million) | 1,980 | — | +5.3% |
| FY2027 guidance — net profit (¥ million) | 1,575 | — | +4.3% |
| FY2027 guidance — EPS (¥) | 154.27 | — | — |
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.