Nihon M&A Center (2127) Q2 2026 earnings summary

Executive summary

• Achieved strong growth in sales and ordinary profit in H1 FY2025, with net sales rising 21.5% year-over-year to ¥22,587 million and ordinary profit up 43.1%, significantly exceeding original forecasts.

• Number of completed M&A transactions and average revenue per transaction increased, with a notable rise in large transactions closed.

• Comprehensive income increased 37.7% year-over-year to ¥5,433 million for the period.

• Upward revision of first half earnings forecast announced in October due to outperformance.

Financial highlights

• H1 FY2025 sales: ¥22,587 million (+21.5% YoY); ordinary profit: ¥8,571 million (+43.1% YoY); operating profit: ¥8,399 million (+41.8% YoY); OP margin: 37.9% (+5.7pt YoY).

• Q2 FY2025 sales: ¥13,569 million (+23.9% YoY); ordinary profit: ¥6,037 million (+35.9% YoY); OP margin: 44.5%.

• Net profit for H1: ¥5,393 million (+42.9% YoY); profit attributable to parent: ¥5,410 million (+44.7% YoY); basic EPS for six months: ¥17.05.

• Gross profit margin improved to 61.9% in H1 FY2025; cost of sales and SG&A ratios both decreased YoY.

• Total assets as of September 30, 2025, were ¥60,520 million, with net assets at ¥48,341 million and equity-to-asset ratio at 79.2%.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2026: net sales ¥46,300 million (+5.0% YoY), operating profit ¥17,000 million (+1.7%), ordinary profit ¥17,000 million (+0.5%), profit attributable to owners of parent ¥11,000 million (+0.4%), and basic EPS ¥34.67.

• 48.8% of full-year sales and 50.4% of ordinary profit achieved in H1.

• No change to full-year forecast; timely disclosures will be made if significant changes occur.

• Mid-term plan targets consolidated sales of ¥50,000 million in FY2026 and ¥54,000 million in FY2027.