ZERO (9028) Q2 2025 earnings summary

Executive summary

• Revenue for the second quarter of FY2025 increased by 7.1% year-over-year to ¥68.96 billion, with operating profit surging 113.9% to ¥4.95 billion and net profit attributable to owners rising 240.1% to ¥3.5 billion.

• Strong performance was driven by domestic automotive-related business, supported by improved transport efficiency, increased contract volume, and price revisions implemented from January 2024.

• Group companies, especially IKEDA and Souing, contributed to revenue and profit growth, while HR business also benefited from increased contracts and personnel.

• The domestic automobile market saw a decline in new vehicle sales but an increase in used vehicle registrations and exports, supporting business growth.

Financial highlights

• Revenue: ¥68.96 billion (+7.1% YoY); Operating profit: ¥4.95 billion (+113.9% YoY); Operating margin: 7.2% (+3.6pt YoY).

• Net profit attributable to owners: ¥3.5 billion (+240.1% YoY); EPS: ¥207.12 (+239.4% YoY).

• Gross profit increased from ¥7.53 billion to ¥10.55 billion year-over-year.

• Interim dividend: ¥43.0 per share (+28.0 YoY); PBR at 1.10x (+0.26 YoY); ROE forecast at 14.0%.

• Total assets increased to ¥73.6 billion, and equity attributable to shareholders rose to ¥39.9 billion.

Outlook and guidance

• Full-year revenue forecast is ¥135 billion (95.9% of previous year), with operating profit expected at ¥8.1 billion (+30.1% YoY) and net profit at ¥5.5 billion (+32.5% YoY).

• ROE is projected to rise to 14.0%, and annual dividend is planned at ¥107.4 per share, with payout ratio target raised to 33%.

• Mid-term plan targets consolidated revenue of ¥150 billion and operating profit of ¥10 billion by FY2026.

• No revisions have been made to the previously published earnings forecast.