Pasona Group (2168) Q4 2025 earnings summary

Executive summary

• Net sales declined 13.3% year-over-year to ¥309.2 billion, mainly due to the sale of Benefit One Inc. and peaking of large BPO projects.

• Operating profit turned negative at ¥-1.24 billion, compared to ¥6.79 billion in the previous year.

• Net loss attributable to owners was ¥8.66 billion, impacted by extraordinary losses related to the Osaka-Kansai Expo.

• Gross profit margin improved in BPO Solutions and excluding Outsourcing, but overall gross profit fell 19.9% year-over-year.

• Maintained a year-end dividend of ¥75 per share, including a special dividend, despite the net loss.

Financial highlights

• Gross profit excluding Outsourcing increased by ¥1.76 billion year-over-year, but overall gross profit was ¥67.96 billion, down 19.9%.

• SG&A expenses decreased overall, but increased excluding Outsourcing due to investments in human resources and higher personnel costs.

• Extraordinary losses of ¥5.55 billion were recorded, mainly from Expo-related expenses.

• Cash and deposits declined by ¥67.5 billion year-over-year, with year-end cash at ¥78.66 billion.

• Free cash flow was negative at ¥-43.3 billion, a decrease of ¥144.9 billion year-over-year.

Outlook and guidance

• FY2025/2026 net sales are forecast to rise 6.7% to ¥330.0 billion, with operating profit expected to recover to ¥2.5 billion.

• Profit attributable to owners is projected at ¥0.5 billion, a significant turnaround from the prior year’s loss.

• All major segments, except BPO Solutions, are expected to see sales and profit growth in FY2025/2026.

• Dividend policy maintains a minimum of ¥75 per share, including a special dividend, through FY2028.