Nomura Research Institute (4307) Q3 2025 earnings summary

Executive summary

• Q3 operating revenue reached JPY 571.8 billion, business profit JPY 101.3 billion, and net profit JPY 62.4 billion, all record highs for the third quarter.

• Revenue for 3Q FY March 2025 rose 3.3% year-over-year to ¥568.2 billion, with operating profit up 12.2% to ¥102.4 billion and profit attributable to owners up 17.5% to ¥71.8 billion.

• Profitability improved across all domestic segments, while overseas bottom line benefited from cost reductions.

• All major business segments, except Industrial IT Solutions, posted revenue growth; Consulting and IT Platform Services showed double-digit gains.

• All six business units reported year-over-year increases in operating revenue and profit.

Financial highlights

• Gross profit margin improved to 36.2% from 35.4% year-over-year.

• Operating margin increased to 18.0% from 16.6% year-over-year.

• EBITDA margin rose to 24.9% from 23.0% year-over-year.

• Basic earnings per share rose to ¥125.15 from ¥104.68 year-over-year.

• Free cash flow for the nine months was ¥56.9 billion, stable year-over-year.

Outlook and guidance

• Full-year revenue forecast revised to ¥770.0 billion, up 4.5% year-over-year, with operating profit forecast at ¥134.0 billion, up 11.3%.

• Profit attributable to owners forecast at ¥92.0 billion, up 15.5% year-over-year.

• Dividend per share forecast raised to ¥63.00, an 18.9% increase year-over-year.

• Consulting and IT Platform Services expected to lead growth, while Industrial IT Solutions is forecast to decline slightly.

• Domestic orders in industrial IT are recovering, with strong outlook for other segments.