Persol (2181) Q2 2025 earnings summary

Executive summary

• First half FY2024 revenue reached ¥717.6 billion, up 9.6% year-over-year, with operating profit at ¥32.1 billion, up 21.7% year-over-year, and adjusted EBITDA at ¥42.8 billion, up 22.1% year-over-year.

• All major SBUs posted revenue growth, with Career and Asia Pacific segments leading at 15.0% and 16.8% increases, respectively.

• Interim dividend of ¥4.5 per share was declared, and 53.6 million treasury shares (2.3% of issued shares) will be canceled.

• MSCI ESG rating upgraded to AAA, reflecting strong governance and human capital management.

• The company revised its full-year guidance upward, reflecting improved visibility and strong first-half results.

Financial highlights

• Gross profit increased 11.5% to ¥165.8 billion, while SG&A expenses rose by ¥9.4 billion.

• Profit attributable to owners of parent increased 27.5% to ¥21.4 billion, aided by a ¥1.3 billion tax refund.

• Adjusted EPS for the first half was ¥10.99 (+31.7% YoY); basic EPS was ¥9.56.

• Free cash flow declined to ¥12.5 billion due to treasury share purchases; cash and equivalents at period end were ¥77.0 billion.

• Adjusted EBITDA margin improved to 6.0% (up 0.6pt YoY); operating margin rose to 4.5% (up 0.5pt YoY).

Outlook and guidance

• Full-year FY2024 revenue forecast is ¥1,455.0 billion (+9.6% YoY); adjusted EBITDA projected at ¥76.0 billion (+5.1%).

• Operating profit expected to reach ¥56.0 billion (+7.6% YoY); profit attributable to owners of parent at ¥36.5 billion.

• Basic EPS forecast at ¥16.30; adjusted EPS at ¥18.75.

• Annual dividend forecast is ¥9.0 per share, with a payout ratio of 48% based on adjusted EPS.

• 2H will see increased investments in marketing, systems, and integration to drive future growth.