Nihon M&A Center (2127) Q4 2025 earnings summary

Executive summary

• Q4 sales and ordinary profit reached record highs, but full-year sales were nearly flat year-over-year due to fewer completed mandates and longer transaction lead times; average sales per transaction increased.

• Number of new mandates reached record highs, especially in midcap and central area companies, indicating future growth potential.

• External factors such as inappropriate buyers, negative publicity, revised SME M&A guidelines, and rising interest rates contributed to fewer closed transactions and longer deal closure times.

• Strategic focus on regrowth, improving client relationships, consultant training, employee engagement, and compliance following an inappropriate accounting incident.

• Profit attributable to owners of parent increased 2.1% to ¥10,957 million; comprehensive income grew 4.2% to ¥11,489 million.

Financial highlights

• FY2024 sales were ¥44,077 million (down 0.1% YoY), with Q4 sales at ¥14,234 million, a quarterly record.

• Ordinary profit for the year was ¥16,918 million (up 2.4% YoY), with Q4 at ¥6,205 million (up 28.2% YoY), both records.

• Sales per transaction reached ¥39.6 million for the year, ¥40.7 million in Q4.

• Number of transactions closed was 1,078 (down 5.9% YoY); Q4 closed 340 transactions (down 2.9%).

• Net profit attributable to parent was ¥10,955 million (up 2.1% YoY).

Outlook and guidance

• FY2025 sales forecast is ¥46,300 million, up 5% from last year but down 5.3% from previous guidance; ordinary profit expected at ¥17,000 million (+0.5% YoY); EPS forecasted at ¥34.67.

• Focus on increasing completed mandates, consultant performance, and restoring growth and stakeholder confidence.

• Mid-term plan revised, targeting consolidated sales of ¥76,200 million and ordinary profit of ¥21,800 million by FY2027.

• Dividend of ¥29 per share, including a ¥6 special dividend, will be maintained.

• Management expects to exceed new conservative targets and regain stakeholder confidence.