eGuarantee (8771) Q3 2025 earnings summary

Executive summary

• Guarantee liabilities rose 5.0% year-over-year to 808.6 billion yen, driven by increased new contracts amid rising corporate bankruptcies.

• Net sales for the nine months ended December 31, 2024, increased 9.9% year-over-year to 7,493 million yen, supported by higher guarantee fee rates and expanded guarantee limits.

• Ordinary profit grew 4.4% year-over-year, aided by a 2.0 point improvement in the cost to sales ratio following a risk portfolio review.

• Comprehensive income increased 4.0% year-over-year to 2,658 million yen for the nine-month period.

Financial highlights

• Net sales for the nine months ended December 31, 2024, were 7,493 million yen, up 9.9% year-over-year.

• Operating profit reached 3,741 million yen, a 3.0% increase year-over-year.

• Ordinary profit was 3,812 million yen, up 4.4% year-over-year.

• Net income attributable to owners of parent was 2,514 million yen, a 4.4% increase year-over-year.

• Gross profit rose 4.2% year-over-year to 5,838 million yen.

Outlook and guidance

• Full-year forecasts for FYE 2025 remain unchanged: net sales of 10,100 million yen, operating income of 5,100 million yen, ordinary income of 5,200 million yen, and net income of 3,450 million yen.

• Expecting 23 consecutive years of sales and income growth.

• Q4 performance of guarantee is expected to remain controlled.

• Basic earnings per share for the full year projected at 72.34 yen.