SMS (2175) Q4 2025 earnings summary

Executive summary

• Net sales rose 13% year-over-year to JPY 60,952 million, driven by growth in Career and Kaipoke businesses, but operating and net income declined by 23% and 16% respectively due to proactive hiring and higher advertising investments; results were in line with revised guidance.

• Comprehensive income was JPY 8,682 million, down 1.8% year-over-year.

Financial highlights

• Net sales: JPY 60,952 million (+13% YoY); Operating income: JPY 6,335 million (-23% YoY); Net income: JPY 6,054 million (-16% YoY); Ordinary income: JPY 8,357 million (-16% YoY).

• Basic EPS was 71.0 yen, down from 82.97 yen the previous year.

• Total assets increased to JPY 76,540 million, net assets to JPY 47,319 million, with an equity-to-asset ratio of 61.5%.

• Cash and cash equivalents at year-end were JPY 15,253 million, down JPY 2,112 million year-over-year.

• Sales growth for the 22nd consecutive year since establishment.

Outlook and guidance

• FY03/26 guidance: net sales JPY 67,544 million (+11% YoY), operating income JPY 7,287 million (+15% YoY), net income JPY 7,029 million (+16% YoY), ordinary profit JPY 9,468 million (+13%).

• Double-digit growth in both sales and profits expected, with limited expense increases in 1H FY03/26.

• Company expects continued market expansion due to aging population and plans to invest in brand strengthening and new business development.

• Medium-term targets: 15% CAGR in EPS and 20% ROE by FY03/31.

• Dividend policy updated to a progressive dividend with a 30% payout ratio target, prioritizing growth investment.