Quest Co (2332) Q2 2025 earnings summary

Executive summary

• H1 net sales rose 3.3% YoY to ¥7,234m, driven by higher orders in semiconductor, entertainment, public and social infrastructure, and logistics sectors.

• Operating profit increased 9.6% to ¥496m, ordinary profit 9.8% to ¥535m, and net profit attributable to owners of parent 9.2% to ¥356m.

• Results progressed in line with the initial plan, which remains unchanged; growth initiatives focus on solution services, talent and technology.

Financial highlights

• EBITDA was ¥616m, up 7.1% YoY; operating margin rose to 6.9% from 6.5%, and ordinary margin to 7.4% from 7.0%.

• Gross profit improved to ¥1,358m from ¥1,280m YoY; basic EPS increased to ¥66.54 from ¥61.02.

• Comprehensive income declined to ¥256m from ¥348m due to a negative swing in valuation differences on available-for-sale securities.

• Total assets were ¥9,111m, down from ¥9,460m at the prior fiscal year-end; net assets were ¥6,789m and the capital adequacy ratio was 74.5%.

• Operating profit increased ¥43m YoY: revenue and operational improvements added ¥46m, partly offset by higher personnel, solution-development and internal DX investment.

Outlook and guidance

• FY2024 guidance remains net sales ¥15,000m, operating profit ¥1,050m, ordinary profit ¥1,090m, net profit attributable to owners of parent ¥720m and EBITDA ¥1,262m.

• H1 progress was 48.2% for revenue, 47.3% for operating profit, 49.1% for ordinary profit and 48.8% for EBITDA; guidance was described as on track and was not revised.

• Priorities include expanding higher-value solution services, shifting resources to growth areas, strengthening account management and project reviews, and investing in IT talent and employee engagement.