TechnoPro Holdings (6028) Q1 2025 earnings summary

Executive summary

• Q1 FY25.6 revenue rose 9.4% year-over-year to ¥57.8B, with core operating profit up 21.8% and net profit up 18.6%.

• EPS increased 20.4% to ¥45.35; strong engineer dispatch demand, especially in IT, drove growth despite global uncertainty.

• Utilization rate remained high at 95.1%, and average monthly sales per engineer increased by ¥17,000 year-over-year.

• Results slightly exceeded initial plan, progressing well against H1 guidance.

Financial highlights

• Gross profit margin improved to 26.8% (up 0.2 pts year-over-year); core OP margin rose to 12.0%.

• SG&A expenses increased, mainly from higher recruitment and training costs; SG&A ratio reduced to below 15%.

• Dividend per share for Q1 FY25.6 is ¥30, up 20% year-over-year.

• Net cash at Q1 FY25.6 end was ¥19.2B; net worth ratio at 52.6%.

• Comprehensive income fell to ¥2.36B due to negative foreign currency translation adjustments.

Outlook and guidance

• FY25.6 full-year revenue guidance is ¥237B (+8.1% year-over-year); operating profit forecast at ¥27B (+23.2%).

• Net profit expected to reach ¥18.5B (+26.0% year-over-year); EPS forecast at ¥175.52 (+27.6%).

• Dividend forecast for FY25.6 is ¥90 per share (payout ratio 51.3%).

• No changes to previously announced full-year guidance.

• Core OP margin expected to improve to 12.0% for H1 and 11.4% for full year.