SG Holdings (9143) Q3 2025 earnings summary

Executive summary

• Consolidated operating revenue for the nine months ended December 31, 2024, increased 12.4% year-over-year to 1,118.8 billion yen, with operating income up 6.9% to 76.6 billion yen and net income attributable to owners up 6.3% to 51.3 billion yen.

• Growth was driven by strong performance in the Logistics Business, especially Expolanka, and the inclusion of Chilled & Frozen Logistics Holdings (C&F) from Q3.

• The Delivery Business saw a decrease in package volume but benefited from higher unit prices; Real Estate Business income rose due to asset sales.

• SG Holdings announced the acquisition of Morrison Express Worldwide Corporation to expand its global logistics business.

• 16 companies, including Chilled & Frozen Logistics Holdings and Meito Transportation, were newly added to the scope of consolidation.

Financial highlights

• Operating revenue: 1,118.8 billion yen (+12.4% YoY); Operating income: 76.6 billion yen (+6.9% YoY); Net income: 51.3 billion yen (+6.3% YoY).

• ROE for the nine months was 11.9%, up from 11.5% in the prior year.

• Cash and cash equivalents at period end were 131.2 billion yen, up from 119.2 billion yen.

• Free cash flow turned negative at -39.6 billion yen due to significant investing outflows, mainly from the C&F acquisition.

• Total assets as of December 31, 2024, were 1,077.4 billion yen, up from 897.0 billion yen as of March 31, 2024.

Outlook and guidance

• Full-year earnings forecast remains unchanged: operating revenue 1,470.0 billion yen (+12% YoY), operating income 90.0 billion yen (+1% YoY), net income 60.0 billion yen (+3% YoY).

• Dividend forecast raised to 52 yen per share (up 1 yen YoY).

• Delivery Business forecast slightly weak, but overall consolidated results expected to meet plan due to strong Logistics Business.

• Basic net income per share for the full year is forecast at 95.93 yen.