ZERO (9028) Q4 2025 earnings summary

Executive summary

• Achieved record-high revenue of ¥147.8 billion and operating profit of ¥10.2 billion for the fiscal year ended June 2025, driven by strong performance in domestic automotive and human resource segments, and improved cost management.

• Net income attributable to owners rose to ¥7.18 billion, up 73.0% year-over-year.

• Strategic initiatives included price revisions, enhanced sales activities, strengthened partnerships in used car exports, and the acquisition of SO-ING Co., Ltd.

• Addressed logistics industry challenges, including labor shortages and cost increases, while maintaining market share.

Financial highlights

• Revenue increased by 5.0% year-over-year to ¥147.8 billion; operating profit surged 64.4% to ¥10.2 billion, with an operating margin of 6.9%.

• Gross profit increased to ¥21,753 million from ¥17,668 million year-over-year.

• Basic earnings per share rose to ¥423.91 from ¥245.61 year-over-year.

• Cash and cash equivalents at year-end increased to ¥16,643 million, up from ¥11,316 million.

• Dividend per share for the year totaled ¥140.30, with a payout ratio of 33%.

Outlook and guidance

• FY2026 revenue is forecast at ¥145.0 billion (down 1.9%), with operating profit expected to rise slightly to ¥10.3 billion and net income to ¥7.2 billion.

• Dividend per share projected at ¥140.3, maintaining a 33% payout ratio.

• Medium-term targets for FY2027: revenue over ¥150.0 billion, operating profit above ¥10.0 billion, and ROE of at least 14%.

• The company expects stable profits despite cost increases and the absence of one-time gains from fire loss reversal.

• Used car export business to Malaysia faces temporary demand decline and uncertainty from potential US tariffs.