Nippon Express (9147) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue rose 1.8% year-over-year to ¥1,271.9 billion, mainly from the Simon Hegele acquisition and solid air and ocean freight performance.

• Operating income surged 50.7% to ¥28.7 billion, rebounding from prior-year impairment losses, but profit attributable to owners fell 24.2% to ¥8.6 billion due to higher logistics costs and increased income tax paid.

• Comprehensive income turned negative at ¥(5.2) billion, mainly due to adverse foreign exchange impacts.

• Logistics demand remained sluggish, but Japan segment profit increased, offsetting overseas softness.

Financial highlights

• Consolidated segment income (business profit) reached ¥31.9 billion, up 25.7% year-over-year.

• Gross profit for the six months was ¥115.9 billion, up 9.3% year-over-year, with a gross margin of 9.1%.

• Q2 operating income was ¥28.7 billion, up ¥9.6 billion year-over-year.

• Q2 profit attributable to owners was ¥8.6 billion, down ¥2.7 billion year-over-year; basic EPS was ¥33.75, down from ¥43.20.

• Cash and cash equivalents decreased by ¥57.6 billion to ¥193.7 billion compared to year-end 2024.

Outlook and guidance

• FY2025 revenue forecast is ¥2,600.0 billion, up 0.9% year-over-year; operating income forecast is ¥70.0 billion, up 42.6%; profit attributable to owners forecast at ¥40.0 billion, up 26.1%.

• Forecasts were revised downward from previous guidance due to high logistics costs, increased personnel expenses, and weaker international logistics demand amid U.S. tariff and Middle East uncertainties.

• ROE and ROIC targets for FY2025 are 4.8% and 4.2%, respectively.

• Recovery in international logistics demand is expected to be gradual, with cost controls in place.

• Second Career Support program's financial impact is not yet included in forecasts.