Pasona Group (2168) Q2 2025 earnings summary

Executive summary

• Net sales and profits declined year-over-year due to the exclusion of the Outsourcing segment and the peak-out of large BPO projects.

• Extraordinary loss of ¥2.6 billion recorded for Expo 2025 Osaka pavilion participation.

• Operating profit dropped 98.9% YoY to ¥44 million; net loss attributable to owners was ¥3.76 billion, compared to a ¥145 million profit YoY.

• Full-year forecasts revised downward, with net sales, operating profit, and net profit all reduced.

Financial highlights

• H1 FY2024 net sales: ¥153.9 billion, down 14.2% YoY; excluding Outsourcing, down 4.3%.

• Operating profit: ¥44 million, down 98.9% YoY; excluding Outsourcing, down 90.0%.

• Net loss attributable to owners: ¥3.76 billion, compared to ¥145 million profit YoY.

• Gross profit ratio improved to 22.0% from 20.8% YoY (excluding Outsourcing); gross profit decreased 20.2% YoY to ¥33.9 billion.

• Annual dividend forecast maintained at ¥75 per share (¥15 ordinary, ¥60 special).

Outlook and guidance

• Full-year net sales forecast revised to ¥320 billion (down ¥10 billion from prior), operating profit to ¥1.7 billion (down ¥3.3 billion), and net loss to ¥4.3 billion.

• Previous forecast anticipated a net profit of ¥1.3 billion; revision reflects extraordinary losses and weaker segment performance.

• BPO Solutions and Expert Solutions expected to focus on high-margin projects and order acquisition in Kansai region.

• Career Solutions outplacement business projected to grow in H2.