Nippon Express (9147) Q4 2025 earnings summary

Executive summary

• Strategic initiatives include asset sales, business portfolio restructuring, and capital policy revisions to enhance corporate value.

• Revenue for FY2025 was ¥2,574.8 billion, down 0.1% YoY, with operating profit up 4.9% to ¥51.4 billion, but net profit fell sharply due to impairment losses and higher tax expenses.

• The company aims to become a globally prominent logistics provider by shifting to growth businesses and optimizing capital structure.

• The business environment was challenging, with weak cargo movements from Asia, falling freight rates, and persistent cost pressures, but global growth and sustainability initiatives advanced.

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

Financial highlights

• FY2025 revenue: ¥2,574.8 billion; operating income: ¥51.4 billion; net income: ¥2.6 billion; ROE at 0.3%, below the 6.7% cost of shareholders' equity.

• Operating profit rose 4.9% YoY, but profit before tax dropped 19.5% to ¥41.7 billion, and net profit plunged 87.3% to ¥4.2 billion.

• Gross profit increased 8.6% YoY to ¥240.7 billion, total assets grew 5.1% to ¥2,415.0 billion, and cash and cash equivalents at year-end were ¥283.4 billion, up ¥32.0 billion YoY.

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

• A gain of ¥74.3 billion from real estate sales was offset by a ¥59.5 billion impairment loss on European logistics goodwill.

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.

• Aims to raise PBR above 1.0 and achieve ROE of 8% by FY2026.

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