HIRAYAMA HOLDINGS (7781) Q2 2025 earnings summary

Executive summary

• Achieved year-over-year increases in revenue and profit for the interim period, driven by domestic production recovery and strong orders from new and existing clients, especially in insourcing/dispatch and consulting.

• Strategic investments in personnel and expansion of bases to support future growth.

• Enhanced value-added services and price revisions contributed to improved gross margin.

• Growth was offset by overseas weakness, particularly in Thailand.

Financial highlights

• Interim revenue: ¥18,051.8 million, up 2.1% year-over-year; operating profit: ¥747.6 million, up 10.8%; net profit attributable to shareholders: ¥491.3 million, up 8.8%.

• Gross margin improved to 18.2% from 17.3% year-over-year.

• Free cash flow for the interim period: ¥799 million (prior year: ¥693 million).

• Total assets rose to ¥12,617 million; equity ratio improved to 37.7%.

• Cash and equivalents at period-end increased to ¥6,259.8 million.

Outlook and guidance

• Full-year revenue forecast: ¥38,000 million (+7.7% YoY); operating profit: ¥1,347 million (+20.4% YoY); net profit: ¥850 million (+12.3% YoY), unchanged from previous guidance.

• 14th consecutive year of revenue growth expected.

• Interim progress rates: revenue 47.5%, operating profit 55.5%, net profit 57.8%.

• Dividend forecast: annual ¥50 per share (payout ratio 44.4%), with interim dividend at ¥16.00 per share.

• Domestic production recovery and steady new graduate placements expected to support results, despite overseas headwinds.