Pasona Group (2168) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended February 28, 2025, were ¥228.9 billion, down 13.8% year-over-year, mainly due to the discontinuation of the Outsourcing segment and the peak-out of large BPO projects.

• Operating loss was ¥1.28 billion, compared to a profit of ¥4.67 billion in the prior year.

• Net loss attributable to owners of parent was ¥6,163 million, impacted by extraordinary Expo-related expenses.

• Comprehensive income was negative ¥5,858 million, compared to ¥1,229 million last year.

Financial highlights

• Gross profit declined 20.4% year-over-year to ¥49,682 million; gross margin ratio improved in all segments excluding Outsourcing.

• SG&A ratio increased due to investment in human resources and IT, though SG&A expenses decreased 11.8% to ¥50,962 million.

• Basic earnings per share for the period was ¥(157.36), compared to ¥(19.23) last year.

• Total assets as of February 28, 2025, were ¥278,341 million, down ¥22,749 million from May 31, 2024.

• Equity ratio was 49.8% (up from 49.3% at prior year-end); after adjusting for restricted cash, equity ratio was 61.4%.

Outlook and guidance

• Full-year forecast for FY2025: net sales ¥320.0 billion (down 10.3%), operating profit ¥1.7 billion (down 75.0%), and net loss of ¥4.3 billion.

• No change to previously announced forecast; BPO gross margins improving, temporary staffing orders strong, and tourism expected to benefit from Expo 2025.

• Career Solutions, Global Solutions, and Life Solutions segments are expected to see growth in both sales and operating profit.