H.U. Group Holdings (4544): FY2025 Results Summary — Operating Profit Up 81% and Mid-Term Plan “H.U.2030” 2.0

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H.U. Group Holdings, Inc. (TSE: 4544) announced its FY2025 (fiscal year ended March 31, 2026) financial results on May 14, 2026, together with an updated mid-term management plan, “H.U.2030” 2.0 — Towards a Global H.U. Group. Consolidated net sales rose 1.8% year on year to 2,474, operating profit increased 81.0% to 48, and net profit jumped 147% to 68, lifted by extraordinary income from asset sales. EBITDA grew 13.5% to 265 (EBITDA margin: 10.7%). Unless otherwise noted, figures are in units of 100 million yen, as presented in the company’s materials.

Consolidated Results (Full-Year Actual)

Net sales increased by +43 year on year, with the LTS segment contributing +43, IVD +2, and HS -2. Operating profit improved from 26 to 48 (operating margin: 1.9%), as a +47 improvement in LTS was partly offset by a -23 decline in IVD, which was impacted by lower COVID-19 reagent sales and one-time M&A-related costs of 4.7 (related to the PSG acquisition). Ordinary profit declined from 47 to 28, reflecting non-operating factors including equity in losses of affiliates of 9.0 and a loss on investments in capital of 5.9 (versus a 30.7 gain in FY2024). Net profit rose to 68 on extraordinary income, including a gain of 39.3 on the sale of shares in Care’X and a gain of 22.9 on the sale of land in Kyoto, partly offset by a 4.0 loss on retirement of non-current assets following the SRL legacy system shutdown. ROE was 5.0% and ROIC was 1.5%, and operating cash flow was 216.

Item (¥100 million)	FY2025	FY2024	YoY Change
Net sales	2,474	2,430	+43 (+1.8%)
Operating profit	48	26	+21 (+81.0%)
EBITDA	265	—	+32 (+13.5%)
Ordinary profit	28	47	—
Net profit	68	28	+41 (+147%)

Segment Results

LTS (Lab Testing and its related Services) sales grew 2.8% to 1,573, driven by genetic and esoteric testing growth mainly from hospital clients; genetic test sales rose 6.5% to 315 and hospital-channel sales rose 4.3% to 978. LTS operating profit improved from -46 to 0, supported by pricing optimization, sales growth, and improved testing operations leveraging the fully operational Akiruno Cube laboratory. IVD (In-Vitro Diagnostics) sales were roughly flat at 607: the overseas NEURO business grew 69.7% to 79 and Lumipulse sales rose 7.0% to 278, while Japan COVID-related Lumipulse sales fell 32.2% to 29; IVD operating profit fell 20.2% to 91 on the COVID reagent decline and M&A-related costs. HS (Healthcare-related Services) sales edged down 0.6% to 293, as growth in the sterilization/operation-related business (+3.0% to 236) offset the divestment of the Care’X welfare business (welfare sales -39.9% to 36); home-visiting sales rose to 22 following the consolidation of GAIA Medicare in December 2024.

Segment	Metric (¥100 million)	FY2025	FY2024	YoY
LTS	Net sales	1,573	1,530	+43 (+2.8%)
LTS	Operating profit	0	-46	+47
LTS	EBITDA	137	77	+60 (+78.7%)
IVD	Net sales	607	605	+2 (+0.4%)
IVD	Operating profit	91	113	-23 (-20.2%)
IVD	EBITDA	147	167	-20 (-12.1%)
HS	Net sales	293	295	-2 (-0.6%)
HS	Operating profit	18	18	-0 (-1.0%)
HS	EBITDA	31	35	-5 (-13.0%)

FY2026 Forecast

For FY2026 (ending March 31, 2027), the company targets net sales of 2,560 (+3.5%), operating profit of 90 (+88.3%), EBITDA of 290 (+9.3%), and net profit of 50 (-26.7%, reflecting the absence of the prior year’s extraordinary gains). By segment, sales targets are 1,640 for LTS (+4.3%), 650 for IVD (+7.0%), and 270 for HS (-7.9%), with operating profit targets of 27 for LTS, 110 for IVD (+21.5%), and 17 for HS. Operating cash flow is targeted at 230 (+6.7%), with ROE of 3.7% and ROIC of 3.0%. Key drivers cited include pricing optimization and hospital-market growth including genetic testing in LTS, and CDMO recovery in the global market plus steady NEURO growth in IVD.

Item (¥100 million)	FY2026 Target	FY2025 (Actual)	YoY
Net sales	2,560	2,474	+86 (+3.5%)
Net sales: LTS	1,640	1,573	+67 (+4.3%)
Net sales: IVD	650	607	+43 (+7.0%)
Net sales: HS	270	293	-23 (-7.9%)
Operating profit	90	48	+42 (+88.3%)
EBITDA	290	265	+25 (+9.3%)
Net profit	50	68	-18 (-26.7%)
Operating cash flow	230	216	+14 (+6.7%)

Shareholder Returns

The company maintains a stable, progressive dividend policy and aims for a Dividend on Equity (DOE) ratio of 6%. According to the dividend history chart in the materials, the dividend per share was ¥125 for FY2025, with FY2026 also planned at ¥125. Share repurchases are to be implemented actively and flexibly: ¥5.0 billion was implemented in FY2025, and an additional ¥5.0 billion repurchase was resolved on May 14, 2026, with the target of over ¥20 billion in total remaining in place. Under the mid-term capital allocation policy, the company plans shareholder returns of ¥56 billion including dividends, funded by cumulative operating cash flow of 1,500 or more and asset sales of 150 or more, alongside strategic investment in M&A and growth.

Item	Detail
Dividend per share (FY2025)	¥125
Dividend per share (FY2026 plan)	¥125
Share repurchases (FY2025)	¥5.0 billion implemented
Additional share repurchase	¥5.0 billion resolved on May 14, 2026 (total target of over ¥20 billion remains)
Dividend policy	Stable and progressive; aim for DOE ratio of 6%

Mid-Term Management Plan “H.U.2030” 2.0

Alongside the results, the company presented “H.U.2030” 2.0 — Towards a Global H.U. Group, an update to the plan announced in May 2025. The updated plan introduces a group strategy focused on disease areas — with strong focus on Oncology and NEURO (neurodegenerative disease testing) while positioning infectious diseases and other areas as core fields — and has each operating company focus on its core strengths to improve profitability. The FY2029 financial targets are unchanged: an operating profit margin of 11% or more (LTS 10% or more, IVD 25% or more, HS 8% or more), an EBITDA margin of 16% or more, ROE of 13% or more, ROIC of 10% or more, cumulative operating cash flow of 1,500 or more over FY2025-FY2029, a net debt/EBITDA ratio (excluding lease liabilities) of 1.3x or lower, and an equity ratio of 40% or higher. In NEURO, blood-based NfL and pTau217 assays received CE marking in Europe, and ADx was integrated into Fujirebio Europe in April 2026 to accelerate expansion of the NEURO assay lineup.

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