TechnoPro Holdings (6028) Q2 2025 earnings summary

Executive summary

• Revenue for the first half reached JPY 118.4 billion, up 9.7% year-on-year, with gross profit of JPY 32.4 billion, up 11.6%, and net profit of JPY 10.5 billion, up 22.5%.

• Core operating profit rose 21.2% year-on-year to JPY 14.8 billion, and operating profit increased 21.7% to JPY 15.1 billion, both exceeding guidance.

• Growth was driven by strong demand for engineer dispatching, higher allocation and pricing of domestic engineers, and expansion of project-type services.

• The business environment remains favorable, but challenges include rising turnover, wage pressures, and higher recruitment costs.

Financial highlights

• SG&A expenses for the first half were JPY 17.5 billion, with the SG&A ratio below 15% in both Q1 and Q2.

• Interim dividend of JPY 30 per share approved, with a full-year forecast of JPY 90 and a payout ratio of 50.9%.

• Share buyback program of JPY 5 billion completed and all acquired shares retired.

• Net profit attributable to owners was JPY 10.5 billion (up 22.5%); basic EPS was JPY 100.40 (up 25%).

• Q2 revenue was JPY 60.6 billion, up 9.9% year-on-year; gross profit margin improved to 28.0%.

Outlook and guidance

• Full-year revenue forecast is JPY 237.0 billion (up 8.1% year-on-year), with operating profit forecast at JPY 27.0 billion (up 23.2%).

• Net profit is projected at JPY 18.5 billion (up 26.0%), and EPS at JPY 176.98.

• Full-year guidance remains unchanged despite strong first-half results, due to anticipated higher wage costs and utilization declines in Q4.

• Dividend forecast is JPY 90 per share (payout ratio 50.9%), with a focus on progressive annual dividends.

• No upward revision to medium-term plan targets; M&A contributions remain as initially planned.