Will Group (6089) Q1 2025 earnings summary

Executive summary

• Revenue for 1H FY2025 rose 1.5% year-over-year to ¥70.32 billion, driven by growth in the construction management engineer domain within Domestic W.

• Operating profit declined 50% year-over-year to ¥1.00 billion due to the absence of prior year one-time gains, but normalized operating profit increased 8.8%.

• EBITDA declined 33.6% year-over-year to ¥2.03 billion, reflecting lower profitability despite modest revenue growth.

• Comprehensive income decreased 28.2% year-over-year to ¥1,035 million, with foreign exchange gains partially offsetting profit declines.

• Strategic investments in Domestic W and robust performance in Overseas W permanent placement contributed to exceeding operating income forecasts.

Financial highlights

• Gross profit was ¥14.77 billion (gross margin 21.0%), nearly flat year-over-year.

• EBITDA was ¥2.03 billion, down 33.6% year-over-year.

• Profit attributable to owners of parent was ¥0.53 billion, down 4.4% year-over-year.

• Basic earnings per share dropped to ¥3.05 from ¥31.91 year-over-year.

• SG&A expenses declined, supporting higher-than-expected operating profit.

Outlook and guidance

• FY2025 full-year revenue forecast is ¥140.40 billion (+1.6% year-over-year).

• Operating profit forecast is ¥2.29 billion (-49.4% year-over-year), with profit attributable to owners of parent at ¥1.64 billion (-41.0%).

• Six-month revenue forecast revised upward to ¥70,500 million (up 1.8% year-over-year) due to yen depreciation and Singapore grants.

• Dividend forecast is ¥44 per share, with a total payout ratio of 61.7%.