Honyaku Center (2483) Q4 2025 earnings summary

Executive summary

• Net sales for the fiscal year ended March 31, 2025, were ¥11,210 million, down 0.8% year-over-year, mainly due to a significant decline in the Convention Business, despite record highs in Translation and Interpretation segments.

• Operating income decreased 1.3% year-over-year to ¥890 million, and ordinary income fell 3.5% to ¥905 million, impacted by higher personnel expenses and lower equity method profits.

• Net income attributable to shareholders rose 1.7% to ¥724 million, supported by gains from the sale of subsidiaries and compensation for forced relocation.

Financial highlights

• Gross profit was ¥5,315 million, nearly flat year-over-year, with a gross margin of 47.4%.

• Operating income margin was 7.9%, unchanged from the previous year.

• Cash and cash equivalents at year-end were ¥4,581 million, up ¥91 million from the prior year.

• Dividend per share increased to ¥75, with a payout ratio of 34.6%.

Outlook and guidance

• For the fiscal year ending March 31, 2026, net sales are forecast at ¥11,400 million (+1.6%), operating income at ¥900 million (+1.0%), ordinary income at ¥920 million (+1.5%), and net income at ¥630 million (-12.9%).

• The company will focus on leveraging AI and data in Translation, expanding skilled personnel in Staffing, and deepening client relationships in Interpretation.