JAC Recruitment (2124) investor relations material

Executive summary

• Revenue, ordinary income, and net profit all reached record highs in 1H FY2026, growing 11.0%, 14.3%, and 14.4% year-over-year, respectively, despite falling short of initial targets due to external factors such as the Middle East situation.

• Growth in 2Q slowed to 7.2% YoY, reflecting an uncertain business environment, but placement activity began recovering from April.

• Domestic Recruitment Business, accounting for about 90% of net sales, saw a temporary decline in manufacturing placements but strong performance in IT, consulting, and finance; overseas business outpaced domestic growth.

• The company is focusing on high-salary positions, regional market expansion, and leveraging AI tools to improve productivity and operational efficiency.

Financial highlights

• 1H FY2026 revenue/net sales: ¥25,812 million (+11.0% YoY); gross profit: ¥24,058 million (+11.7% YoY); operating income: ¥7,106 million (+13.9% YoY); EBITDA: ¥7,369 million (+14.4% YoY); net profit: ¥4,885 million (+14.4% YoY).

• Ordinary income: ¥7,141 million (+14.3% YoY); comprehensive income: ¥4,911 million (+15.8% YoY); diluted EPS: ¥30.79.

• EBITDA margin improved by 0.9pt to 28.6%.

• Operating income growth driven by gross profit increase and cost controls, notably lower advertising expenses.

Outlook and guidance

• Full-year FY2026 forecast unchanged: revenue/net sales ¥53,200 million (+15.4% YoY), operating income ¥12,600 million (+7.8% YoY), net profit ¥8,600 million (+2.4% YoY), EPS ¥54.18.

• Business conditions expected to improve in 2H, with continued strength in IT, consulting, and financial sectors, and manufacturing sector recovery.

• No major geopolitical or economic crises assumed in the outlook.