TechnoPro Holdings (6028) Q4 2024 earnings summary

Executive summary

• FY24.6 revenue reached ¥219.2B, up 9.7% year-over-year; gross profit rose 11.2% to ¥58.8B; core operating profit increased 14.1% to ¥24.4B; operating profit was ¥21.9B, up 0.4% year-over-year.

• Net profit was ¥14.7B, down 4.4% year-over-year, impacted by impairment losses; dividend per share maintained at ¥80.

• Number of engineers in Japan grew by 8.0% to 26,054; average utilization ratio for the year was 95.0%.

Financial highlights

• Gross profit margin improved to 26.8% (up 0.3 pts year-over-year); core operating profit margin rose to 11.1%.

• SG&A expenses increased 9.2% year-over-year, mainly due to higher recruitment and overseas costs.

• Dividend per share increased to ¥80 (up ¥5 year-over-year); total shareholder return ratio reached 84.6%.

• Cash and cash equivalents at year-end were ¥45.2B; net cash position of ¥31.4B.

Outlook and guidance

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

• Net profit expected to rise 26.0% to ¥18.5B; EPS forecast at ¥174.60 (+26.9%).

• Dividend forecast for FY25.6 is ¥90 per share (payout ratio 51.5%).

• Anticipate improved unit sales price and stable utilization, though engineer growth may slow due to higher turnover.