Nihon M&A Center (2127) Q4 2025 earnings summary

Executive summary

• Q4 sales and ordinary profit reached record highs, but full-year sales were nearly flat year-over-year due to fewer completed mandates and longer transaction lead times; average sales per transaction increased.

• Number of new mandates reached record highs, especially in mid-cap and central area companies, indicating future growth potential.

• External factors such as inappropriate buyers, negative publicity, revised SME M&A guidelines, and rising interest rates contributed to delays and reduced transaction closures.

• Internal improvements include enhanced client engagement, stricter buyer reviews, upgraded consultant training, and renewed compliance focus following an inappropriate accounting incident.

• The company is focusing on restoring growth, employee engagement, and stakeholder confidence, with a conservative sales forecast for FY2025 to prioritize quality and client relationships.

Financial highlights

• FY2024 net sales were ¥44,077 million (down 0.1% YoY), with Q4 sales at a record ¥14,234 million (up 9.6% YoY).

• Ordinary profit for the year was ¥16,918 million (up 2.4% YoY), with Q4 at a record ¥6,205 million (up 28.2% YoY).

• Sales per transaction improved to ¥39.6 million (up 6.4% YoY), with Q4 at ¥40.7 million (up 12.7% YoY).

• Number of transactions closed declined by 5.9% year-over-year to 1,078; Q4 down 2.9% to 340.

• Net profit attributable to parent was ¥10,957 million (up 2.1% YoY); comprehensive income grew 4.2% to ¥11,489 million.

Outlook and guidance

• FY2025 sales forecast set at ¥46,300 million, up 5% from last year but down 5.3% from previous guidance; ordinary profit expected at ¥17,000 million (+0.5% YoY).

• Basic earnings per share forecasted at ¥34.67 for FY2026.

• Focus on regaining stakeholder confidence, restoring growth, and returning to a cycle of achieving and surpassing targets.

• Dividend maintained at ¥29 per share, including a ¥6 special dividend; payout ratio 84.0% for FY2025, with a target of 60% upon profit recovery.

• Midterm plan revised downward to reflect market changes, targeting consolidated sales of ¥76,200 million and ordinary profit of ¥21,800 million by FY2027.