SENKO Group Holdings Co (9069) Q2 2025 earnings summary

Executive summary

• Operating revenue for the second quarter rose by ¥34.4 billion year-over-year to ¥414,122 million, with operating profit up ¥2.08 billion to ¥16,851 million and net profit up ¥1.64 billion to ¥10,492 million compared to the same period last year.

• Results exceeded May forecasts, with revenue, operating profit, and net profit all surpassing prior guidance.

• Growth was driven by sales expansion, tariff revisions, and M&A contributions, despite ongoing cost pressures and an uncertain economic outlook.

• Interim and year-end dividends were both revised upward to ¥23 per share, resulting in an annual dividend of ¥46.

Financial highlights

• Q2 FY2025 operating revenue: ¥414.1 billion (up 9.1% YoY); operating profit: ¥16.85 billion (up 14.1% YoY); net profit: ¥10.49 billion (up 18.5% YoY).

• Ordinary profit increased 9.2% YoY to ¥16,337 million; comprehensive income up 13.0% to ¥14,696 million.

• EPS for the six months was ¥69.90, compared to ¥61.84 in the prior year period.

• Equity ratio improved to 26.7% from 26.2% at prior year-end.

• Net D/E ratio increased slightly to 1.14 times.

Outlook and guidance

• Full-year FY2025 guidance raised: revenue ¥860.0 billion (+10.5% YoY), operating profit ¥35.8 billion (+19.7% YoY), net profit ¥19.3 billion (+21.0% YoY), and EPS ¥128.56.

• Guidance upgrades reflect strong Q2 and improved outlook across all segments.

• Annual dividend forecast raised to ¥46.00 per share, with a payout ratio target of 40% by FY2027.