Integral (5842) Q2 2025 earnings summary

Executive summary

• Achieved robust investment activity in H1 2025 with three new investments and one exit, including capital participation in major steel fabrication and blood purification businesses, and a successful listing exit.

• Revenue for the six months ended June 30, 2025, was ¥4,955 million, a 48.8% decrease year-over-year, with profit attributable to owners dropping 64.1% to ¥1,701 million.

• Business performance of some investees is in an adjustment phase, impacting fair value and profit.

• Fund management fees increased due to the start of Fund V Series investment period.

• Real estate business is actively investing, contributing to profit diversification.

Financial highlights

• Revenue for Q2 2025 was ¥4.9 billion, down from ¥9.6 billion in Q2 2024, mainly due to a decrease in fair value.

• Profit attributable to owners dropped to ¥1.7 billion from ¥4.7 billion year-over-year.

• Interim dividend of JPY 17 per share declared for June 2025, up from JPY 12 in the previous year.

• Fee Earning AUM reached ¥381 billion as of June 2025.

• Total assets at June 30, 2025, were ¥75,565 million, down from ¥79,050 million at December 31, 2024.

Outlook and guidance

• Fund V investment period started, expected to drive recurring management fee growth.

• No formal earnings forecast due to high dependence on market conditions and fair value estimates.

• Recurring profit/loss forecasts provided for reference, with fund management fees expected to rise 14.2% year-over-year.

• Targeting FE AUM growth rate of 10–20% and fee-related revenue margin of 30–40%.

• Maintaining capital efficiency with a 5-year average ROE of approximately 15%.