Nomura Research Institute (4307) Q2 2025 earnings summary

Executive summary

• Revenue for 1H FY Mar. 2025 rose 4.1% YoY to ¥376.8B, with operating profit up 11.5% to ¥65.6B and profit attributable to owners up 21.2% to ¥45.7B.

• Gross profit margin improved to 35.8% and operating margin to 17.4% for the first half.

• Consulting and Financial IT segments led domestic growth with double-digit operating profit increases, while Industrial IT was stable as new client projects offset declines.

• Overseas demand remains sluggish, with revenue down 2.3% YoY, but profitability improved due to cost controls; North America declined 13.1% while Asia/Other rose 20.9%.

• All major business segments except Industrial IT Solutions posted revenue growth.

Financial highlights

• 1H FY Mar. 2025 revenue rose 4.1% YoY to ¥376.8B; operating profit up 11.5% to ¥65.6B; operating margin improved to 17.4%.

• Profit attributable to owners increased 21.2% YoY to ¥45.7B.

• Basic EPS increased to ¥79.44 from ¥64.13 YoY.

• EBITDA margin improved to 24.5% from 23.0% YoY.

• Free cash flow for 1H: ¥32.7B.

Outlook and guidance

• Full-year FY Mar. 2025 forecast unchanged: revenue ¥780B (+5.9% YoY), operating profit ¥132B (+9.6%), EPS ¥153.13 (+11.9%).

• Profit attributable to owners expected at ¥88B.

• Annual dividend forecast at ¥58 per share, a 9.4% increase.

• No changes to capital investment, R&D, or depreciation/amortization forecasts.

• Strong domestic demand expected to continue; overseas recovery remains slow.