Seven & i Holdings (3382) Q4 2025 earnings summary

Executive summary

• FY2024 revenues rose 4.4% year-over-year to JPY 11.97 trillion, but net income declined 23% to JPY 173 billion, with operating income down 21.2% to JPY 420.9 billion.

• Strategic priorities include accelerating growth in Japan and North America, cost discipline, innovation, and unlocking value through an SEI IPO and enhanced shareholder returns.

• Major acquisitions in Australia and the U.S. expanded the global footprint, while leadership changes and a focus on convenience store business were emphasized.

• Announced a JPY 2 trillion capital return plan by FY2030, including large-scale share buybacks and a JPY 600 billion repurchase in FY2025.

• The company is leveraging franchisee strength, global scale, and digital transformation to drive disciplined execution.

Financial highlights

• FY2024 operating revenue was JPY 11.97 trillion (104.4% YoY), operating income JPY 420.9 billion (78.8% YoY), and net income JPY 173 billion (77% YoY), all exceeding revised plans.

• Adjusted net income was JPY 197.7 billion; EPS was JPY 66.62, and EBITDA reached JPY 995.5 billion.

• Free cash flow (excluding financial services) improved to JPY 435 billion, and cash flows from operating activities rose to JPY 876.5 billion.

• Extraordinary losses totaled JPY 220.9 billion, mainly from structural reforms, store closures, and impairments.

• Owner’s equity ratio improved to 35.4%, and total assets increased to JPY 11,386.1 billion.

Outlook and guidance

• FY2025 net income forecast is JPY 255 billion (up 47.3% YoY), operating income JPY 424 billion, and EPS JPY 101.96, with significant EPS growth expected from reforms and buybacks.

• FY2026 revenues are forecast at JPY 10.76 trillion, reflecting business divestitures, with EBITDA projected at JPY 963 billion.

• Long-term plans include JPY 3.5 trillion in growth investments and JPY 2 trillion in share repurchases by 2030.

• Annual dividend forecast for FY2026 is JPY 50 per share, up from JPY 40 in FY2025.

• IPO of SEI planned by 2H 2026, with proceeds to support further shareholder returns.