SRE Holdings (2980) Q2 2025 earnings summary

Executive summary

• Six-month revenue rose 35.4% YoY to ¥10,152 million and operating profit increased 112.0% to ¥1,289 million.

• Ordinary profit rose 123.6% to ¥1,195 million and net income attributable to owners of parent increased 80.2% to ¥663 million.

• Growth was led by AICC, while L&P sustained profit growth; FY2024 guidance remained unchanged.

Financial highlights

• Gross profit increased to ¥4,457 million from ¥3,013 million YoY.

• Basic EPS was ¥41.24, up from ¥22.76 YoY.

• Total assets were ¥30,849 million and net assets ¥13,197 million; the equity ratio was 40.8%.

• Cash and cash equivalents at period end were ¥2,555 million, up from ¥1,936 million a year earlier.

• Net income attributable to owners of parent increased despite costs from disposing of existing office interior during head-office expansion.

Outlook and guidance

• FY2024 guidance: revenue ¥27,000 million (+11.5%), operating profit ¥3,050 million (+37.9%), ordinary profit ¥2,900 million (+41%), and net income ¥1,850 million (+33.2%).

• Adjusted EBITDA guidance is ¥3,600 million, 13.3% of sales, versus ¥2,586 million and 10.7% in FY2023.

• FY2024 ARR target is ¥6.2 billion (+45%); Q2 ARR was ¥4,878 million and the guidance was unchanged.

• AICC FY2024 guidance is revenue ¥7,500 million (+54%) and segment profit ¥2,400 million (+41%); potential MEDIX profit upside is excluded.

• L&P targets FY2024 revenue of ¥20,500 million (+2%), segment profit of ¥950 million (+10%) and period-end AUM of ¥110 billion (+70%).