S-Pool, Inc. (2471): FY2025 Results Summary — Revenue Up 1.9% While Operating Profit Falls 13.1%

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S-Pool, Inc. reported revenue of 26,029 million yen for FY2025 (the fiscal year ended November 30, 2025), up 1.9% year on year, as growth in the Business Solutions Segment offset a decline in the Human Resource Solutions Segment. Operating profit fell 13.1% to 2,418 million yen and profit attributable to owners of parent fell 31.2% to 1,444 million yen, reflecting weaker profit in the Human Resource Solutions Segment and a temporary loss recorded in the Business Solutions Segment. Results were presented in the company’s “Results Briefing Materials 4Q FY2025” dated January 14, 2026, prepared under IFRS.

Consolidated Results (Full-Year Actual)

The company notes that Special Needs Employment Services, Environmental Management Support Services and Sales Promotion Support Services respectively drove business performance, while operating profit decreased due to challenges in Human Resource Outsourcing and Wide-area Administrative BPO Services and the recording of temporary expenses. Gross profit margin improved 0.4pt to 37.4%, but selling and administrative expenses rose 8.1% and the ratio of selling and administrative expenses to net sales rose 1.6pt to 27.9%.

Item (Unit: million yen)	FY2025	FY2024	YoY	YoY (%)
Revenue	26,029	25,554	+474	+1.9%
Gross profit	9,735	9,454	+280	+3.0%
Gross profit margin (%)	37.4%	37.0%	–	+0.4pt
Selling and administrative expenses	7,252	6,709	+542	+8.1%
Selling and administrative expenses/net sales (%)	27.9%	26.3%	–	+1.6pt
Operating profit	2,418	2,783	-364	-13.1%
Operating profit margin (%)	9.3%	10.9%	–	-1.6pt
Profit before tax	2,123	2,569	-446	-17.4%
Profit attributable to owners of parent	1,444	2,099	-655	-31.2%

Against the company’s own plan, revenue of 26,029 million yen came in 798 million yen (3.0%) below the plan of 26,828 million yen, and operating profit of 2,418 million yen was 655 million yen (21.3%) below the plan of 3,074 million yen. The deck attributes the operating profit shortfall mainly to Wide-area Administrative BPO Services ((292) million yen), Logistics Outsourcing Services ((175) million yen) and Employment Support Services ((130) million yen). The Logistics Outsourcing shortfall reflects a temporary loss on the closing of the Shinagawa Center (178 million yen), while Employment Support Services was affected by the carryover of a delivery period to the next fiscal year (71 million yen) and rising personnel expenses at centers.

Segment Results

The Business Solutions Segment posted double-digit revenue growth of 10.2% to 16,554 million yen, but operating profit declined 3.1% to 3,585 million yen due mainly to one-time expenses incurred. The Human Resource Solutions Segment saw revenue fall 9.8% to 9,579 million yen and operating profit fall 5.2% to 822 million yen, although its operating profit margin improved 0.4pt to 8.6% as the company focused on projects with a high unit price and controlled selling and administrative expenses. Adjustments, described as mainly administrative costs and Groupwide IT expenses, widened to (1,989) million yen from (1,783) million yen.

Item (Unit: million yen)	Segment	FY2025	FY2024	YoY	YoY (%)
Revenue	Business Solutions Segment	16,554	15,016	+1,538	+10.2%
Revenue	Human Resource Solutions Segment	9,579	10,620	-1,040	-9.8%
Revenue	Adjustments	(104)	(81)	–	–
Revenue	Total	26,029	25,554	+474	+1.9%
Operating profit	Business Solutions Segment	3,585	3,699	-113	-3.1%
Operating profit	Human Resource Solutions Segment	822	867	-44	-5.2%
Operating profit	Adjustments	(1,989)	(1,783)	–	–
Operating profit	Total	2,418	2,783	-364	-13.1%
Operating profit margin	Business Solutions Segment	21.7%	24.6%	–	-2.9pt
Operating profit margin	Human Resource Solutions Segment	8.6%	8.2%	–	+0.4pt
Operating profit margin	Total	9.3%	10.9%	–	-1.6pt

Results by Service

Within the Business Solutions Segment, Special Needs Employment Services exceeded the plan, supported by smooth employment and training activities, with revenue of 9,045 million yen (up 12.6%). The company reported 1,308 sections of equipment sold for the full year, 722 customer companies (up 58 companies), 59 farms (40 outdoor, 19 indoor), 9,883 sections managed and 4,942 employees with a retention rate of 92%; six farms opened during the year (1 outdoor, 5 indoor). Wide-area Administrative BPO Services significantly fell below the plan due to limited expansion of national projects, with revenue of 1,368 million yen (down 9.2%); one center opened in Ube City, Yamaguchi Prefecture. Environmental Management Support Services grew 21.1% to 1,928 million yen, with corporate sales of 1,652 million yen (up 26.2%) and local government sales of 276 million yen (down 2.5%). In the Human Resource Solutions Segment, Human Resource Outsourcing Services revenue was 9,579 million yen (down 9.8%), comprising call centers of 7,596 million yen (down 10.2%) and sales support of 802 million yen (down 33.4%).

Service (Unit: million yen)	FY2025 Revenue	YoY change
Special Needs Employment Services	9,045	+12.6%
Wide-area Administrative BPO Services	1,368	(9.2)%
Environmental Management Support Services	1,928	+21.1%
Logistics Outsourcing Services	1,331	+0.0%
Employment Support Services	804	+2.1%
Sales Promotion Support Services	1,414	+21.2%
Human Resource Outsourcing Services	9,579	(9.8)%

FY2026 Forecast

For FY2026 the company plans revenue of 26,844 million yen (up 3.1%), operating profit of 2,733 million yen (up 13.0%), profit before tax of 2,436 million yen (up 14.7%) and profit attributable to owners of parent of 1,659 million yen (up 14.9%). The deck states that the company will complete foundation development in FY2026, aiming to secure regrowth from FY2027, and that it aims for business turnaround toward regrowth by promoting foundation development during the year. By segment, the plan calls for Business Solutions Segment revenue of 18,124 million yen (up 9.5%) and operating profit of 4,295 million yen (up 19.8%), while the Human Resource Solutions Segment is planned at revenue of 8,900 million yen (down 7.1%) and operating profit of 690 million yen (down 16.1%), with the decline in profit expected to increase in proportion to the decline in sales due to investments toward strengthening the recruitment of temporary staff. Operating profit is projected to cluster in the second half, at (205) million yen in 1Q, 644 million yen in 2Q, 517 million yen in 3Q and 1,777 million yen in 4Q.

Item (Unit: million yen)	FY2026 planned	FY2025 results	YoY	YoY (%)
Revenue	26,844	26,029	+814	+3.1%
Gross profit	10,324	9,735	+588	+6.0%
Gross profit margin (%)	38.5%	37.4%	–	+1.1pt
Selling and administrative expenses	7,591	7,252	+338	+4.7%
Selling and administrative expenses/net sales (%)	28.3%	27.9%	–	+0.4pt
Operating profit	2,733	2,418	+314	+13.0%
Operating profit margin (%)	10.2%	9.3%	–	+0.9pt
Profit before tax	2,436	2,123	+312	+14.7%
Profit attributable to owners of parent	1,659	1,444	+214	+14.9%

Shareholder Returns

The company’s dividend policy is a consolidated payout ratio of 30% or higher, with the note that even if earnings decrease, dividends will not be reduced to levels at which the consolidated payout ratio decreases by more than 60% on a single-year basis. The year-end dividend for FY2025 was 10.00 yen, unchanged from FY2024 and FY2023. A dividend of 10 yen is planned for FY2026, which the company states corresponds to a consolidated payout ratio of 47.2%.

Business Policies and Topics

In Special Needs Employment Services, the FY2026 plan is revenue of 10,029 million yen (up 10.9%), with equipment sales planned at 1,350 sections and six farms planned to open (2 outdoor, 4 indoor); the company is focusing on improving the value of farms by strengthening career development support for employees and expanding the utilization of vegetables. Wide-area Administrative BPO Services plans revenue of 1,575 million yen (up 15.1%) based on a sales plan that excludes pending national policy-related projects, aiming to double the basic shared BPO business year on year to 85% of sales; the company’s stated targets are monthly shared BPO sales of 170 million yen as of November and 300 proposed local governments in FY2026, versus FY2025 results of 58 million yen per month and 70 local governments. Environmental Management Support Services plans revenue of 1,913 million yen (down 0.8%) and Human Resource Outsourcing Services plans revenue of 8,900 million yen (down 7.1%). The deck also reports a change in management structure, with Giichi Shirakawa to become President and Executive Officer and Sohei Urakami to become Chairman of the Board and Representative Director, scheduled after the 26th ordinary general meeting of shareholders held on February 26, 2026. S-Pool was selected for three of the six ESG investment indices used by the GPIF, with a CDP score of “B” and a Sustainalytics ESG Risk Rating of “Low Risk”.

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.