Next Generation Technology Group (319A) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue rose 3.7% year-over-year to 2,659 million yen, but Adjusted EBITDA fell 22% to 441 million yen due to delayed high-margin orders at a key subsidiary.

• Operating profit dropped 27.1% to 290 million yen, and net income attributable to shareholders declined 52.1% to 183 million yen.

• IPO in February 2025 raised 1.8 billion yen, boosting cash for future M&A and strengthening the capital base.

• Two new acquisitions (Miyasaka Industries/Miyazaka Kogyo and Suntec/Santec Sangyo) completed in April 2025, expected to contribute fully in FY2026.

• Portfolio now includes 12 companies diversified across manufacturing sectors, reducing exposure to specific end markets.

Financial highlights

• Net sales: 2,659 million yen in Q1 FY2025, up 3.7% year-over-year.

• Adjusted EBITDA: 441 million yen, down 22% year-over-year; adjusted net income: 198 million yen, down 37.7%.

• Operating profit: 290 million yen, down from 397 million yen; net income attributable to shareholders: 183 million yen, down from 382 million yen.

• Listing-related expenses of 23 million yen recorded as non-operating expenses, impacting quarterly profit.

• Cash and deposits increased by 1.5 billion yen from December 2024 to March 2025.

Outlook and guidance

• Full-year FY2025 forecasts unchanged: net sales 11.6 billion yen, adjusted EBITDA 2.4 billion yen, adjusted profit 1.2 billion yen.

• Adjusted EBITDA for FY2026 projected at 2.9 billion yen with full-year contribution from new acquisitions.

• Delayed orders expected to be received within the fiscal year, supporting recovery.