SG Holdings (9143) Q4 2025 earnings summary

Executive summary

• Operating revenue for FY2025/3 rose 12.3% year-over-year to 1,479.2 billion yen, with operating income down 1.5% to 87.8 billion yen.

• Net income attributable to owners of the parent decreased 0.3% year-over-year to 58.1 billion yen.

• Logistics and Real Estate Businesses drove revenue growth, while Delivery Business saw a decline in package volume but higher unit prices.

• Strategic investments and acquisitions, including former C&F and Morrison, are expected to generate synergies and support future growth.

• Shareholder returns enhanced via a treasury share acquisition program up to 75.0 billion yen and progressive dividend policy.

Financial highlights

• FY2025/3 operating revenue: 1,479.2 billion yen (+12.3% YoY); operating income: 87.8 billion yen (-1.5% YoY); net income: 58.1 billion yen (-0.3% YoY).

• ROE at 10.0%, equity ratio at 55.8%, both slightly down from previous year.

• Cash flows from operating activities: 118.6 billion yen; free cash flow: -46.1 billion yen due to significant investing activities.

• Year-end cash and cash equivalents totaled 116.9 billion yen, down from 147.3 billion yen a year earlier.

• Interest-bearing debt increased to 205.3 billion yen due to acquisitions.

Outlook and guidance

• FY2026/3 forecast: operating revenue 1,629.0 billion yen (+10% YoY), operating income 91.0 billion yen (+4% YoY), net income 57.0 billion yen (-2% YoY).

• ROE expected to improve to 10.3% due to treasury share acquisition; ROIC to decrease to 6.9%.

• Dividend per share to increase by 1 yen to 53 yen.

• Recovery in package volume anticipated from Q2 FY2026/3, with synergy effects from new consolidations.