Relo Group (8876) Q4 2025 earnings summary

Executive summary

• Revenue and operating profit reached record highs in FY2025/3, driven by stock base expansion, digitization, efficiency improvements, and a gain on sale of equity-method investments.

• Net income surged to 43,317 million yen, reversing a prior-year loss, mainly due to a gain on sale of Nihon Housing Co., Ltd. shares; adjusted results show solid underlying growth.

• The company fulfilled targets set in its Third Olympic Plan and is transitioning to the Fourth Olympic Plan, targeting long-term growth and addressing labor shortages and business succession.

Financial highlights

• FY2025/3 revenue: 142,908 million yen (+7.8% YoY); operating profit: 30,437 million yen (+10.2% YoY); gross profit: 66,308 million yen.

• Net income: 43,317 million yen (vs. loss of 27,807 million yen prior year), mainly from one-time gains.

• Adjusted net income (excluding one-time items): 21,535 million yen (+8.8% YoY).

• FY2026/3 plan: revenue 150,000 million yen (+5.0%), operating profit 31,400 million yen (+3.2%), profit attributable to owners 21,000 million yen (-51.5%).

• Basic EPS improved to 286.85 yen; projected at 140.30 yen for FY2026/3.

Outlook and guidance

• FY2026/3 guidance expects continued revenue and operating profit growth, but lower net profit due to absence of one-time gains.

• Fourth Olympic Plan targets FY2029/3 revenue of 200 billion yen and operating profit of 50 billion yen.

• Focus on expanding B2B outsourcing, property management, and tourism businesses.

• Dividend payout ratio to rise to 35%, with annual dividend forecast of 42 yen per share.