Will Group (6089) Q2 2025 earnings summary

Executive summary

• Revenue for 1H FY2025 rose 1.5% year-over-year to ¥70.32 billion, driven by expansion 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%.

• Profit attributable to owners of parent dropped 63.9% to ¥0.51 billion.

• Strategic investments in Domestic W and robust growth in Overseas W permanent placement contributed to exceeding operating income forecasts by 29.4%.

• Overseas Working Business benefited from yen depreciation, but profit declined due to lower gross profit and continued weak demand from major clients.

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.

• Basic earnings per share decreased to ¥22.22 from ¥61.84 in the prior year period.

• Total assets as of September 30, 2024 were ¥50.35 billion, down from ¥51.54 billion at March 31, 2024.

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

Outlook and guidance

• FY2025 full-year revenue forecast is ¥140.40 billion (+1.6% vs FY2024), with operating profit projected at ¥2.29 billion (-49.4%).

• Profit attributable to owners of parent is forecast at ¥1.64 billion (down 41.0%).

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

• Basic earnings per share for the full year is projected at ¥71.92.

• No revisions to previously announced earnings forecasts.