UT Group Co (2146) Q2 2025 earnings summary

Executive summary

• Net sales reached a record ¥89,397 million for the first half of FY3/2025, up 8.8% year-over-year, driven by acquisitions, workforce expansion, and newly consolidated subsidiaries.

• Operating profit and EBITDA declined year-over-year due to lower operating rates, increased hiring, and higher personnel expenses.

• Extraordinary income from the sale of subsidiaries boosted net profit attributable to shareholders by 81.3% to ¥6,411 million and EPS to record highs.

• The number of technical employees increased by 10,064 to 55,602, reflecting aggressive hiring and business expansion.

Financial highlights

• Net sales rose 8.8% year-over-year to ¥89,397 million in 2Q FY3/2025.

• EBITDA decreased 23.5% year-over-year to ¥4,630 million; EBITDA margin fell to 5.2%.

• Operating profit dropped 31.2% to ¥3,604 million; ordinary profit down 29.3% to ¥3,691 million.

• Net profit attributable to shareholders surged 81.3% to ¥6,411 million, driven by a ¥5.9 billion gain on sale of subsidiaries.

• EPS increased 82.0% year-over-year to ¥161.17.

Outlook and guidance

• Full-year sales forecast revised downward to ¥183,100 million (up 9.6% year-over-year), with operating profit expected at ¥6,500 million (down 30.4%).

• Profit attributable to owners of the parent forecast at ¥8,100 million, up 27.3% year-over-year, but below initial guidance.

• EPS forecast lowered by 37.8% to ¥203.45.

• Dividend payout ratio maintained at 60%, with a forecast DPS of ¥102.66.