Hulic (3003) Q2 2025 earnings summary

Executive summary

• Achieved record-high profits in 2Q FY2025, with operating profit up 8.9% and ordinary profit up 2.6% quarter-over-quarter, driven by stable leasing income and strong real estate sales.

• Operating revenue for the six months ended June 30, 2025, rose 46.4% year-over-year to JPY300.1 bn.

• Growth investments exceeded JPY370.0 bn in 1H, with over JPY120.0 bn more nearly confirmed for 2H.

• Major projects include Narita Logistics Development with Japan Airlines and arena development in Makuhari.

• International business investments reached JPY25.0 bn in 1H, cumulative JPY63.0 bn.

Financial highlights

• Operating revenue: JPY300.1 bn (+46.4% YoY); operating profit: JPY75.1 bn (+8.9% YoY); ordinary profit: JPY66.5 bn (+2.6% YoY); profit attributable to owners of parent: JPY44.9 bn (+1.7% YoY).

• Comprehensive income decreased 9.0% year-over-year to JPY47.6 bn.

• EPS for the period was 59.06 yen, up from 57.98 yen in the prior year.

• All profit items reached record highs, progressing as planned toward annual forecasts.

Outlook and guidance

• On track to achieve annual forecasts, with 42% of operating revenue and 40% of operating profit already realized.

• Full-year forecast for 2025: Operating profit JPY178.0 bn (+8.9% YoY), ordinary profit JPY164.0 bn (+6.2% YoY), profit attributable to owners of parent JPY108.0 bn (+5.5% YoY), EPS 142.16 yen.

• Medium-term plan targets ordinary profit of JPY180.0 bn or higher by FY2027, with net investments of JPY930.0 bn over three years.

• Plans to increase dividends to 57.0 yen per share, maintaining a payout ratio above 40%.

• No changes to previously announced forecasts as business performance is proceeding according to plan.