Nippon Express (9147) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue rose to ¥1,908.6 billion, up 0.4% year-over-year, mainly from the Simon Hegele acquisition.

• Operating income increased by 9.0% year-over-year to ¥38.0 billion, while profit attributable to owners dropped 36.7% to ¥11.6 billion, impacted by lower unit sales prices, higher costs, and exchange rate fluctuations.

• Consolidated segment income (business profit) increased by 14.4% year-over-year.

• International logistics demand is expected to recover gradually, but the environment remains challenging.

• Extraordinary items included gains on land sales, a rebound from prior impairment losses, and an expected impairment loss on goodwill of ¥50.0 billion, mainly in Europe.

Financial highlights

• Q3 FY2025 revenues: ¥1,908.6 billion (+0.4% YoY); business profit: ¥49.9 billion (+14.4% YoY); operating income: ¥38.0 billion (+9.0% YoY).

• Gross profit improved 7.3% YoY to ¥176.9 billion, with a gross margin of 9.3%.

• Profit attributable to owners: ¥11.6 billion, down 36.7% YoY; net profit for the period was ¥12.4 billion, down 34.3% YoY.

• Basic earnings per share for the nine months was ¥46.00, reflecting a three-for-one share split.

• Total assets as of September 30, 2025, were ¥2,321.5 billion, up 1.1% from the previous fiscal year-end.

Outlook and guidance

• FY2025 full-year revenue forecast: ¥2,580.0 billion (+0.1% YoY); business profit: ¥70.0 billion (+10.1% YoY).

• Operating income forecast: ¥50.0 billion (+1.9% YoY, down 18.0% from previous forecast); profit attributable to owners: ¥10.0 billion (−68.5% YoY), mainly due to impairment loss on goodwill and other one-time items.

• Basic earnings per share forecast at ¥40.89.

• ROE expected at 1.2% (down 2.6 pts YoY); ROIC at 4.2% (+0.2 pt YoY).

• Downward revision for profit measures below operating income due to impairments and other factors.