Will Group (6089) Q4 2025 earnings summary

Executive summary

• Revenue for FY2025 rose 1.1% year-over-year to ¥139.7 billion, driven by strategic investments, especially in the construction management engineer domain within Domestic Working Business.

• Operating profit declined 48.3% to ¥2.33 billion due to the absence of prior year’s one-time gains and the exclusion of a subsidiary from consolidation, but normalized operating profit increased 22.0%.

• Profit attributable to owners of parent fell 58.4% to ¥1.15 billion.

• Domestic Working Business saw steady growth in most domains except call center outsourcing; construction management engineer domain achieved profitability.

• Overseas Working Business revenue rose 1.8% due to yen depreciation, but segment profit declined 26.4% amid weak hiring and impairment losses.

Financial highlights

• Gross profit decreased 3.5% year-over-year to ¥29.38 billion, with gross margin down 1.0pt to 21.0%.

• EBITDA dropped 28.1% to ¥4.89 billion.

• Profit before tax: ¥2.18 billion (down 50.7%).

• Basic EPS: ¥50.64 (down from ¥122.37).

• Comprehensive income: ¥890 million (down 76.7%).

Outlook and guidance

• FY2026 revenue is forecast to decline 3.7% to ¥134.6 billion, reflecting a conservative view on Overseas Working Business, while Domestic Working Business is expected to grow 1.1%.

• Operating profit is projected to rise 6.9% to ¥2.50 billion, with normalized operating profit up 10.4%.

• Profit attributable to owners of parent forecast: ¥1.56 billion (up 35.0%).

• Dividend per share is forecast to remain at ¥44, with a total payout ratio of 65.1%.

• Key strategies include expanding the construction management engineer domain, foreign talent management, and permanent employee staffing, with a focus on cost control and consultant retention overseas.