Yamato Holdings (9064) Q2 2025 earnings summary

Executive summary

• Operating revenue for 1H FY2025/3 was ¥840.4bn, down 3.0% YoY, with an operating loss of ¥15.0bn and net loss of ¥11.2bn.

• Revenue decline driven by lower post-box and contract logistics volumes, despite growth in cross-border EC and B2B-EC parcels.

• Operating expenses rose due to higher labor, outsourcing costs, and investments in new business models.

• Downward revision of full-year forecast: operating revenue ¥1,730bn, operating profit ¥10bn, net profit ¥5bn.

• Announced acquisition of Nakano Shokai to expand Contract Logistics and generate synergies.

Financial highlights

• 1H FY2025/3 operating revenue: ¥840.4bn (down 3.0% YoY); operating loss: ¥15.0bn; net loss: ¥11.2bn.

• Q2 operating revenue: ¥434.7bn (down ¥11.5bn YoY); Q2 operating profit: ¥0.7bn.

• Ordinary loss: ¥13.7bn; basic EPS: -¥32.58.

• Free cash flow for 1H: -¥31.1bn; cash and cash equivalents: ¥164.0bn.

• Capital expenditure in 1H: ¥25.3bn (+15.5% YoY); depreciation: ¥23.4bn (+8.7% YoY).

Outlook and guidance

• Full-year operating revenue forecast revised to ¥1,730bn (down ¥50bn), operating profit to ¥10bn (down ¥40bn), net profit to ¥5bn (down ¥27bn).

• Annual dividend forecast maintained at ¥46/share, targeting payout ratio of at least 40%.

• Aim to improve profitability by strengthening execution, optimizing pricing, and accelerating cost reforms.

• Investment plan for FY2025/3 revised down to ¥80bn from ¥150bn, focusing on efficiency.