Japan Investment Adviser (7172) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose 38.7% year-over-year to ¥20,768 million, with operating profit up 84.4% to ¥11,380 million and profit attributable to owners of parent up 7.8% to ¥6,147 million.

• All profit categories increased year-over-year, driven by strong Operating Lease Business performance, with record-high equity sales for the first half.

• Despite high progress toward annual targets, ordinary and net income missed first-half forecasts due to significant exchange losses from yen appreciation.

• The Operating Lease Business drove growth, with sales up 41.1% year-over-year, while Real Estate and Private Equity Investment businesses also saw significant increases.

• The Renewable Energy Business experienced a sharp sales decline of 84.1% year-over-year due to a rebound effect from a prior large project.

Financial highlights

• Net sales rose 38.7% year-over-year to ¥20,768 million; operating profit up 84.4% to ¥11,380 million.

• Ordinary profit increased 13.9% to ¥9,497 million; net income attributable to owners up 7.8% to ¥6,147 million.

• Gross profit margin improved to 77.1% from 67.2% a year earlier; gross profit increased from ¥10,060 million to ¥16,017 million.

• Equity sales in Operating Lease Business reached ¥76,957 million, up 25.4% year-over-year.

• Exchange losses totaled ¥1,023 million, compared to gains of ¥2,229 million in the prior year.

Outlook and guidance

• FY2025 forecasts remain unchanged: net sales ¥36,870 million, operating profit ¥18,120 million, net income ¥10,500 million.

• Progress rates for H1: net sales 56.3%, operating profit 62.8%, net income 58.6% of full-year targets.

• Dividend forecast for FY2025 is ¥87.0 per share.

• Mid-term plan targets net income of ¥25 billion by FY2026.