Next Generation Technology Group (319A) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY2025 rose 4.6% year-over-year to JPY 5,619M, but operating profit fell 34.3% to JPY 512M and net income dropped 55.0% to JPY 289M.

• Adjusted EBITDA declined 6.8% year-over-year to JPY 1,026M, mainly due to order delays, but full-year forecasts remain unchanged.

• Three acquisitions completed in FY2025: Miyasaka Industries, Suntec Industry, and Kanda Iron Works, with full-year EBITDA contribution expected in FY2026.

• Comprehensive income decreased 56.1% year-over-year to JPY 294M.

Financial highlights

• Net sales reached JPY 5,619M in Q2 FY2025, up 4.6% year-over-year; progress rate to full-year forecast is 48.4%.

• Adjusted EBITDA was JPY 1,026M, down 6.8% year-over-year; progress rate to forecast is 42.8%.

• Adjusted profit was JPY 510M, with a progress rate of 42.5% toward the annual target.

• Basic earnings per share declined to JPY 33.47 from JPY 81.28 year-over-year.

• Gross profit margin decreased as cost of sales increased faster than net sales.

Outlook and guidance

• Full-year 2025 forecast: net sales of JPY 11,600M (+5.0% YoY), adjusted EBITDA of JPY 2,400M (+11.4%), and adjusted profit of JPY 1,200M (+15.2%).

• Full-year forecasts for net sales, adjusted EBITDA, and adjusted profit are maintained, with delayed orders expected to be recognized within the fiscal year.

• Adjusted EBITDA for FY2026 is projected at JPY 3.0B, reflecting full-year contributions from recent acquisitions.

• No dividends are planned for the fiscal year.