Tokyo Growth-listed TWOSTONE&Sons Inc. (7352) on Oct. 6 lowered its consolidated forecast for the year through August 2026, cutting net profit attributable to owners of the parent by 35.1% to ¥428 million from ¥660 million and revenue to ¥21.805 billion from ¥24.182 billion.
The revision covers the year from Sept. 1, 2025, to Aug. 31, 2026. Operating profit is now projected at ¥810 million, down 38.8% from ¥1.324 billion, and ordinary profit at ¥847 million, down 35.9% from ¥1.321 billion. Earnings per share are seen at ¥9.71, compared with ¥15.02.
Registered engineers reached 71,258, above an initial assumption of 68,000. But in the Midworks business, efforts to strengthen the sales organization fell behind plan, and proposal capability and the accuracy of matching projects with engineers remained issues. Matching of freelance engineers stalled, leaving active engineers at 22,684 against an assumed 25,134 and revenue ¥2,377 million short of the previous forecast.
Midworks curbed advertising and recruitment advertising spending, but lower sales of high-margin products in the marketing platform service, upfront investment in personnel in the consulting and advisory segment, and investment toward a future AI consulting business left operating profit ¥514 million below the earlier forecast.
| Item (¥ million) | Previous | Revised | Change | FY Aug. 2025 actual |
|---|---|---|---|---|
| Revenue | 24,182 | 21,805 | -9.8% | 18,077 |
| Operating profit | 1,324 | 810 | -38.8% | 819 |
| Ordinary profit | 1,321 | 847 | -35.9% | 807 |
| Net profit attributable to owners of parent | 660 | 428 | -35.1% | 494 |
The company said it would use AI for needs analysis and proposal generation, combine skill data with AI recommendations to improve matching, and specialize sales functions. For the year ending August 2027, it plans to invest in new business areas, including an AI consulting company, as outlined in a Sept. 17, 2026, announcement on the establishment of two subsidiaries.
| Hikari Tsushin, Inc. | |
| Offer price | ¥1,000 per common share |
| M&A / TOB | 1 |
| Guidance | 0 |
| Buybacks | 0 |
| Dividends | 0 |
| Capital | 0 |
| Earnings | 0 |
| People | 0 |
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