Nihon M&A Center (2127) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 sales rose 18.1% year-over-year to ¥9,018 million, with ordinary profit up 63.8% to ¥2,533 million, driven by an 11% increase in closed transactions and higher sales per transaction, including a rise in large deals.

• Strategic focus on closing transactions and sales led to a temporary decline in new mandates, but new transaction negotiations increased by 10% year-over-year.

• Cost optimization, stricter mandate screening, and efficiency improvements, such as shortening the preparatory period for mandates from 85 to 57 days, contributed to improved margins and profitability.

• Comprehensive income for the quarter increased 14.8% year-over-year to ¥1,344 million.

Financial highlights

• Sales: ¥9,018 million (+18.1% YoY); Ordinary profit: ¥2,533 million (+63.8% YoY); Operating profit: ¥2,509 million (+56.6% YoY); Net income attributable to parent: ¥1,515 million (+74.2% YoY).

• Gross profit increased 24.9% year-over-year to ¥5,381 million; M&A sales per transaction grew 6.1% to ¥40.8 million.

• Cost of sales: ¥3,600 million (+9.2% YoY); SG&A: ¥2,800 million (+6.2% YoY); gross margin improved as cost of sales ratio declined to 40.3% from 43.6% YoY.

• Ordinary profit margin improved by 7.9 percentage points to 28.1%.

• Basic earnings per share for the quarter was ¥4.78, up from ¥2.74 year-over-year.

Outlook and guidance

• FY2025 revenue guidance is ¥46,300 million, a 5.3% decrease from last year’s ¥48,900 million, with operating and ordinary profit both targeted at ¥17,000 million.

• Profit attributable to parent company forecast at ¥11,000 million, EPS at ¥34.67.

• Management is confident in achieving and potentially exceeding first-half guidance, targeting a return to a Q3 peak cycle in the coming years.

• Mid-term plan targets consolidated sales of ¥54,000 million and ordinary profit of ¥20,000 million by FY2027.

• No revisions to previously announced financial forecasts.