HIRAYAMA HOLDINGS (7781) Q2 2025 earnings summary

Executive summary

• H1 FY6/25 net sales rose 2.1% YoY to ¥18,051m; operating profit rose 10.8% to ¥747m and parent-attributable profit rose 8.8% to ¥491m.

• Growth was led by in-sourcing and temp staffing and the Others segment; engineer placement profit and overseas operations profit declined.

• Domestic production recovery, strong client orders, value-added services and price revisions supported growth and improved margins; investments in personnel and bases continued.

Financial highlights

• H1 net sales were ¥18,051m, up 2.1% YoY; operating profit ¥747m, up 10.8%; ordinary profit ¥776m, up 9.6%.

• Parent-attributable profit was ¥491m, up 8.8% YoY; basic EPS was ¥64.49 and diluted EPS was ¥63.78.

• Gross profit rose to ¥3,288m from ¥3,064m; gross margin improved to 18.2% from 17.3%, while SG&A increased to ¥2,540m from ¥2,389m.

• Free cash flow was ¥799m, compared with ¥693m in the prior-year interim period.

• Comprehensive income was ¥496m versus ¥453m YoY; foreign currency translation adjustment contributed ¥4m.

Outlook and guidance

• FY6/25 guidance remains unchanged: net sales ¥38,000m, up 7.7%; operating profit ¥1,347m, up 20.4%; ordinary profit ¥1,336m, up 14.5%.

• Full-year parent-attributable profit is forecast at ¥850m, up 12.3%, with EPS of ¥112.62; 14th consecutive year of revenue growth expected.

• Outlook assumes recovering Japanese manufacturing, more orders and contributions from new graduates after assignment; hiring and training for specialized technical roles will continue.

• Forecasts exclude potential M&A impacts and actual results may differ significantly due to changing assumptions and other factors.