Next Generation Technology Group (319A) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 FY2025 rose 11.5% year-over-year to ¥8,970 million, with adjusted EBITDA up 2.9% and adjusted profit up 18.9% year-over-year.

• Profit attributable to owners of parent increased 29.7% to ¥801 million, and comprehensive income rose 35.1% to ¥847 million.

• Four new acquisitions (Alpha System, Yamatai, Taga, Advance) completed since Q2, totaling seven for the fiscal year.

• High-margin orders for Aero Craft Japan, delayed in Q2, began contributing in Q3.

• A 1-for-5 reverse stock split was conducted effective November 1, 2024.

Financial highlights

• Adjusted EBITDA: ¥1,663 million, up 2.9% year-over-year; adjusted profit: ¥883 million, up 18.9% year-over-year.

• Net sales: ¥8,970 million in Q3 FY2025, up 11.5% year-over-year.

• Basic earnings per share: ¥92.08, up from ¥78.32 in the prior year.

• Gross profit increased to ¥2,474 million, while SG&A expenses rose to ¥1,679 million.

• Net Debt/Adjusted EBITDA at 1.22x, well below the target range of 3-4x.

Outlook and guidance

• Full-year forecasts for Net Sales, Adjusted EBITDA, and Adjusted Profit are expected to be achieved.

• FY2026 Adjusted EBITDA projected at ¥4.0 billion, reflecting full-year contribution from new acquisitions.

• Full-year 2025 net sales forecast at ¥11,600 million, adjusted EBITDA at ¥2,400 million, and adjusted profit at ¥1,200 million.

• No dividends are planned for the fiscal year ending December 31, 2025.