Koyou Rentia (7081) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of FY2025 rose 7.5% year-over-year to ¥17,561 million, with operating income up 34.4% and net income up 36.8%.

• Growth was driven by strong performance in rental-related, construction, event, and ICT businesses, especially from Expo projects and cost control in SG&A.

• All major business segments except merchandise posted year-over-year sales and profit growth.

• The company continues to focus on ESG initiatives, business model innovation, and a mid-term plan emphasizing sustainability and human capital.

• Merchandise sales declined due to a reactionary drop from prior year’s new banknote-related orders.

Financial highlights

• Q2 revenue reached ¥17,561 million, a 7.5% increase year-over-year.

• Operating income was ¥1,557 million, up 34.4% year-over-year; net income was ¥876 million, up 36.8%.

• EBITDA rose 19.7% to ¥2,665 million.

• Gross profit margin improved to 39.7% from 38.7% year-over-year, as sales growth outpaced cost increases.

• EPS increased from 58.43 to 79.27 yen.

Outlook and guidance

• Full-year revenue forecast at ¥33,100 million (+3.9% YoY), operating income at ¥2,400 million (+15.3% YoY), and net income at ¥1,500 million (−3.2% YoY), with EPS of ¥135.63.

• Annual dividend forecast raised to ¥31 per share, up from ¥30 in 2024, with interim dividend of ¥10 and year-end dividend of ¥21.

• Focus on leveraging Expo legacy, expanding business, and promoting ESG management.