JAC Recruitment Co., Ltd. (2124): FY2025 Results Summary — Record Revenue and Profit as the Overseas Business Returns to Profit

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JAC Recruitment Co., Ltd. reported revenue of 46,089 million yen for FY2025 (the fiscal year ended 31 December 2025), an increase of 17.7% year on year, and profit attributable to owners of parent of 8,400 million yen, up 49.7%. The presentation states that both revenue and profit exceeded the initial forecast and reached record highs. Operating income rose 28.5% to 11,683 million yen and ordinary income rose 28.4% to 11,709 million yen. The core Domestic Recruitment Business again delivered record-high revenue and profit, while the Overseas Business returned to profitability.

Consolidated Results (Full-Year Actual)

Revenue came in at 102.7% of the initial forecast and 99.5% of the revised forecast disclosed on 12 November, while profit attributable to owners of parent reached 120.0% of the initial forecast and 98.8% of the revised forecast. The company explains that operating income grew 28.5% year on year because cost growth was kept well below the rate of gross profit growth through its “Minimum Cost” initiatives, and because IT costs were deferred to the following year due to delays in core system development. The 49.7% increase in profit is attributed mainly to the absence of the impairment losses on goodwill and fixed assets recorded in the previous year, particularly in the Overseas Business, together with the impact of wage-increase tax incentives (a tax credit on wage increases of 552 million yen in FY2025 against 186 million yen in FY2024).

Item (Million yen)	4Q FY2025	4Q FY2024	Change in pct.	vs. Initial Forecast	vs. Revised Forecast (Disclosed 12 Nov)
Revenue	46,089	39,156	+17.7%	102.7%	99.5%
Gross Profit	42,720	36,248	+17.9%	102.7%	99.6%
Operating Income	11,683	9,090	+28.5%	116.8%	99.9%
EBITDA	12,152	9,737	+24.8%	–	–
EBITDA Margin	26.4%	24.9%	+1.5pt	–	–
Ordinary Income	11,709	9,122	+28.4%	117.1%	100.1%
Profit Before Tax	11,502	8,348	+37.8%	115.0%	99.2%
Profit attributable to owners of parent	8,400	5,611	+49.7%	120.0%	98.8%

On a quarterly basis, revenue was 11,793 million yen in 1Q, 11,453 million yen in 2Q, 12,141 million yen in 3Q and 10,700 million yen in 4Q. The presentation notes that 1Q and 2Q delivered around +20% year on year, significantly outperforming the plan, while 4Q growth moderated to +10.8% year on year, partly due to the high growth in the same period of the previous year and the deferral of certain deals to January of the following year. Total assets stood at 30,895 million yen at the end of December 2025 against 26,013 million yen a year earlier, and total net assets were 22,345 million yen against 18,095 million yen, with the company describing its financial strength as remaining high at an equity ratio of 72.3%. Cash flows from investing activities were an outflow of 8,777 million yen, mainly due to 8.0 billion yen placed in time deposits.

Segment Results

The Domestic Recruitment Business grew segment revenue 19.0% to 41,660 million yen and segment profit 27.3% to 11,122 million yen, continuing to achieve record-high revenue and profit. The presentation notes that the impact of recruitment restrictions due to United States tariff policies was limited, while demand for the mid- to high-level professionals that form the core of the business remained active; the company accelerated business shifts aligned with evolving regulations, strengthened its focus on the Executive domain and continued enhancing its regional hiring framework and specialised recruitment capabilities. The Overseas Business lifted revenue 7.6% to 4,031 million yen and swung to a segment profit of 287 million yen from a loss of 447 million yen in FY2024 (which included impairment losses of 508 million yen on goodwill and non-current assets). The Domestic Job Offer Advertising Business saw revenue edge down 1.0% to 397 million yen while segment profit rose 56.9% to 92 million yen.

Segment (Million yen)	Segment revenue FY2025	Segment revenue FY2024	Change in pct.	Segment profit (loss) FY2025	Segment profit (loss) FY2024	Change in pct.
Domestic Recruitment Business	41,660	35,009	+19.0%	11,122	8,736	+27.3%
Overseas Business	4,031	3,745	+7.6%	287	(447)	―
Domestic Job Offer Advertising Business	397	401	(1.0%)	92	59	+56.9%

Within the Domestic Recruitment Business, revenue by industry shows the Financial Services Sector at 2,727 million yen (+38.0%), the IT & Telecom Sector at 9,377 million yen (+25.8%) and the Medical & Healthcare Sector at 5,799 million yen (+23.3%), each recording revenue growth of over 20%; the Electrical, Machinery & Chemical Sector reached 14,927 million yen (+15.8%) and the Consumer goods & Service Sector (including Construction and Real estate) 6,657 million yen (+18.7%). All sectors except Consulting, at 2,130 million yen (-2.5%), achieved year-on-year revenue growth, and the presentation notes that the Consulting Sector recovered with revenue increasing 24.3% year on year in the second half. The number of consultants in the Domestic Recruitment Business rose to 1,722, a net increase of 301 compared with 2024, in line with the full-year plan as of the first half, while the consultant turnover rate deteriorated by 1.9 points to 11.6% from 9.7% in the previous year.

FY2026 Forecast

For FY2026 the company forecasts revenue of 53,200 million yen (+15.4%), gross profit of 48,500 million yen (+13.5%), operating income, ordinary income and profit before tax each of 12,600 million yen, and profit attributable to owners of parent of 8,600 million yen (+2.4%). Revenues are expected to grow about 15% year on year in line with the medium-term management plan. The presentation explains that profit growth is expected to be restrained because, in addition to IT costs deferred from the previous fiscal year, the tax deduction for wage increases applied in the previous year is not included in the FY2026 forecasts at this stage. The company plans to add 362 consultants in FY2026 (about 200 new graduates plus mid-career hires), which would take the headcount of the Domestic Recruitment Business to 2,084.

Item (Million yen)	FY2025 Results	FY2026 Forecast	YoY (FY25 vs. FY26 Forecast)
Revenue	46,089	53,200	+15.4%
Gross Profit (GP)	42,720	48,500	+13.5%
Operating Income	11,683	12,600	+7.8%
Ordinary Income	11,709	12,600	+7.6%
Profit Before Tax (PBT)	11,502	12,600	+9.5%
Profit attributable to owners of parent	8,400	8,600	+2.4%

Shareholder Returns

The dividend per share for FY2025 is 36 yen, an increase of 10 yen year on year, with a dividend payout ratio of 68.5%, exceeding 65% for the second consecutive year, and DOE of 27.5%. The company has revised its dividend policy from a payout ratio targeted at 60%–65% to a payout ratio targeted at 65% or more, while maintaining a steady trend of increasing dividends in line with profit growth. It gives as the reason for the change its sufficient retained earnings to maintain a sound financial position, as well as the fact that the dividend payout ratio has exceeded the target range for two consecutive periods. In light of its stable financial position, the company has also decided to introduce interim dividends so that dividends will be paid twice a year. For FY2026 it plans to raise the dividend by 2 yen to 38 yen per share, split into 19 yen at the interim and 19 yen at the end of the term, with an expected payout ratio of 70.6% and DOE of 25.4%.

DPS	Middle	End of term	Total
FY2026 Forecast	19 yen	19 yen	38 yen
FY2025 Results		36 yen	36 yen
FY2024 Results		26 yen	26 yen

Medium-Term Management Plan and Strategy

The medium-term management plan targets annual growth of approximately 15% with the aim of achieving the world’s No. 1 position: revenue of 53.2 billion yen in 2026, 61.2 billion yen in 2027 and 70.4 billion yen in 2028, with operating income rising from 11.6 billion yen in 2025 to 17.3 billion yen in 2028 and profit attributable to shareholders of the parent company from 8.4 billion yen to 11.9 billion yen. Beyond the plan period the company shows a long-term target of 200.0 billion yen in revenue, to be reached through organic growth, new businesses and M&A. It states that the domestic recruitment market of the three major recruitment agencies has recorded a 10-year average growth rate (CAGR) of 12.4%, with job seekers aged 41 and over up 29.8% year on year in FY2024. For business investment, investment efficiency is required to well exceed the hurdle rate set based on the cost of capital of 7.6%.

Item (Billion yen, %)	2025 (Actual)	2026 (Forecast)	2027 Goals	2028 Goals
Revenue	46.0	53.2 (+15%)	61.2 (+15%)	70.4 (+15%)
Operating Income	11.6	12.6	14.5	17.3
Operating margin	25.3%	23.7%	23.7%	24.6%
Profit attributable to shareholders of the parent company	8.4	8.6 (+2%)	9.9 (+15%)	11.9 (+20%)
Profit margin	18.2%	16.2%	16.2%	16.9%

In the Overseas Business, which became profitable in FY2025, the company plans to strengthen group collaboration through the continued involvement of Sales Directors and to increase its focus on the U.S., Europe, India, Vietnam and other regions where expansion of Japanese companies is expected. For operational efficiency, the renewal of core systems commences in FY2026 following a full review conducted in FY2025, targeting system cutover in FY2027, alongside further promotion of the “Minimum Cost” initiatives. On non-financial targets, the rate of female managers was 26.5% as of December 2025 against a 2030 target of 40%, and the rate of female directors was 27.3% against a 2030 target of 30%.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.