Nihon M&A Center (2127) Q3 2025 earnings summary

Executive summary

• Third quarter results showed declines in sales and profit due to fewer closed transactions, but record highs in new mandates and negotiations indicate future growth.

• Strategic investments in marketing, human resources, and digital transformation are expected to drive mid- and long-term growth.

• The company maintains industry leadership, recognized by Guinness World Records for four consecutive years.

• Net sales for the quarter were ¥29,843 million, a decrease of 4.2% year-over-year.

• Operating profit declined by 6.1% year-over-year to ¥10,552 million.

Financial highlights

• Q3 YTD sales: ¥29,843 million, down 4.2% year-over-year; ordinary profit: ¥10,712 million, down 8.3%.

• Net profit for Q3 YTD: ¥6,850 million, down 6.1% year-over-year.

• Number of transactions closed: 738, down 7.3% year-over-year.

• M&A sales per transaction rose 4% year-over-year to ¥39 million.

• Gross profit margin declined to 56.8% from 57.5% year-over-year.

Outlook and guidance

• Full-year net sales forecast is ¥48,900 million, up 10.8% year-over-year; operating profit forecast is ¥17,000 million, up 5.8% year-over-year.

• Profit attributable to owners of parent is forecast at ¥11,000 million, a 2.9% increase year-over-year.

• Basic earnings per share for the full year is forecast at ¥34.68.

• Dividend forecast for FY2024: ¥29 per share, including a ¥6 special dividend; payout ratio 83.6%.

• Guidance remains unchanged for the year and mid-range plan, with expectations of improved performance due to strong leading indicators.