Nippon Express (9147) Q4 2025 earnings summary

Executive summary

• International logistics demand is recovering, but a full-scale rebound is expected to take time due to ongoing trade policy shifts, geopolitical risks, and weak cargo movements from Asia.

• Strategic initiatives focus on improving corporate value through asset sales, business portfolio restructuring, and capital policy revisions, aiming to become a globally prominent logistics company.

• Revenue for FY2025 was ¥2,574.8 billion, down 0.1% year-over-year, with operating profit up 4.9% to ¥51.4 billion, but profit attributable to owners of parent fell 91.5% to ¥2.7 billion due to significant impairment losses and higher tax expenses.

• Major M&A activity included the acquisition of Simon Hegele and cargo-partner, expanding global and healthcare logistics capabilities.

Financial highlights

• Consolidated operating income and profit increased year-over-year, driven by improved gross margins and spot logistics in Japan, with operating profit at ¥51.4 billion (+4.9% YoY).

• Gains on land sales rose by JPY 75.3 billion year-over-year, with proceeds totaling JPY 111.4 billion; a major Tokyo warehouse sale contributed ¥74.3 billion.

• Net income fell short of projections and plunged 87.3% due to higher tax expenses, foreign exchange losses, and a ¥59.5 billion impairment loss on European logistics goodwill.

• PBR at 0.99 at end of 2025, improved from previous year; current PBR around 1.05 as of January 2026.

Outlook and guidance

• FY2026 targets: revenue ¥2,700.0 billion, net income ¥60.0 billion, operating income ¥100.0 billion, ROE 7.0%.

• FY2028 plan: revenue ¥3,000.0 billion, net income ¥100.0 billion, operating income ¥150.0 billion, ROE 10% or greater.

• Operating profit forecast for 2026 is JPY 100 billion, with land sale gains of approximately JPY 19 billion.

• Annual dividend projected at JPY 100, with ROE forecast at 7.0% for 2026.

• The company will continue to focus on global expansion, business portfolio optimization, and sustainability, with capital expenditures planned at ¥80 billion.