Honyaku Center (2483) Q4 2025 earnings summary

Executive summary

• FY2025 revenue fell 0.8% to ¥11.210bn; operating income declined 1.3% to ¥890m and ordinary income fell 3.5% to ¥905m, as convention weakness and higher personnel expenses offset record Translation and Interpretation sales.

• Net income attributable to owners of the parent rose 1.7% to ¥723m, supported by subsidiary-sale gains and forced-relocation compensation; lower equity-method profits weighed on ordinary income.

Financial highlights

• Gross profit was ¥5.314bn, nearly flat, with a 47.4% gross margin; SG&A rose 0.2% to ¥4.424bn.

• Special gains were ¥195m versus ¥69m in FY2024; special losses were ¥14m versus ¥2m.

• Operating income margin was 7.9%, unchanged year over year.

Outlook and guidance

• FY2026 forecast: revenue ¥11.400bn (+1.6%), operating income ¥900m (+1.0%), ordinary income ¥920m (+1.5%), and net income ¥630m (-12.9%).

• FY2028 mid-term targets: revenue ¥13bn, operating income ¥1.2bn, net income ¥800m, and ROE of at least 10%.

• FY2026 gross margin is forecast at 47.8%; SG&A is forecast to rise 2.8% to ¥4.550bn.