Nomura Research Institute (4307) Q1 2025 earnings summary

Executive summary

• Revenue for 1Q FY March 2025 rose 6.5% year-over-year to ¥188,110 million, with operating profit up 20.8% to ¥32,643 million and net profit attributable to owners up 28.8% to ¥22,166 million.

• Gross profit margin improved to 36.0% from 35.7%, and operating margin increased to 17.4% from 15.3% year-over-year.

• Strong domestic demand and improved profitability from DX consulting and financial IT solutions projects, with North America showing financial improvement though overseas demand recovery is expected later in the year.

Financial highlights

• EBITDA margin improved to 23.6% from 21.9% year-over-year.

• Basic earnings per share rose to ¥38.51 from ¥29.15 year-over-year.

• Cash and cash equivalents at period end were ¥154,094 million, up 10.5% year-over-year.

• Free cash flow for the quarter was ¥19,670 million, down 28.8% year-over-year.

Outlook and guidance

• Full-year FY March 2025 revenue forecast remains at ¥780 billion, with operating profit at ¥132 billion.

• Overseas demand recovery is expected in the second half of the year at the earliest.

• Annual EPS forecast is ¥152.71, and annual dividend per share is projected at ¥58.00.