WILL GROUP (6089): FY2025 Results Summary — Record Revenue and a 40.2% Jump in Operating Profit

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: WILL GROUP labels the fiscal year ended March 31, 2026 as “FY2026” in its materials; the labels used in the text, tables and segment data below follow the presentation. WILL GROUP, INC. (TSE Prime, stock code 6089) reported revenue of 146.85 billion yen for FY2026, up 5.1% year on year, which the company describes as a record high for the first time since FY2023. Operating profit rose 40.2% to 3.27 billion yen, and EBITDA rose 15.0% to 5.63 billion yen. Alongside the results, the company announced a new Medium-term Management Plan, “WILL-being 2029.”

Consolidated Results (Full-Year Actual)

Revenue increased by 5.1% due to steady growth in the Domestic Working Business, led by the construction management engineer domain, as well as solid temporary staffing revenue in the Overseas Working Business. Operating profit increased significantly by 40.2% due to the increase in gross profit driven by the successful realignment of the business portfolio in the Domestic Working Business, controlled SG&A expenses, and an increase in gross profit from higher permanent placement revenue in the Overseas Working Business, as well as the absence of impairment losses recorded in the corresponding previous period. Normalized operating profit, which excludes temporary gains and losses, was 3.00 billion yen, up 32.8%.

Item (Billions of yen)	FY2026	FY2025	Change
Revenue	146.85	139.70	+5.1%
Operating profit	3.27	2.33	+40.2%
Normalized operating profit	3.00	—	+32.8%
EBITDA	5.63	—	+15.0%

In the breakdown of the year-on-year change in revenue, the construction management engineer domain added 3.11 billion yen, the rest of the Domestic Working Business added 2.04 billion yen, the Overseas Working Business excluding the forex impact added 1.47 billion yen, the forex impact added 0.58 billion yen, and Others were down 0.06 billion yen. On the operating profit bridge, the construction management engineer domain contributed 0.95 billion yen and the Overseas Working Business 0.99 billion yen, while the rest of the Domestic Working Business was down 0.19 billion yen, the provision for paid leave was down 0.43 billion yen, Others were down 0.08 billion yen and corporate expenses were down 0.29 billion yen.

Segment Results

In the Domestic Working Business, revenue increased by 6.2% on the expansion of the construction management engineer domain, steady performance in the sales outsourcing domain, growth of the IT engineer domain, and an increase in permanent placement revenue from the newly consolidated HR CAREER, Inc. Segment profit rose 10.1%. The proportion of gross profit from the key strategic areas (permanent employee staffing and outsourcing, and foreign talent management services) expanded to 47.8%, and the gross profit margin reached 21.7% versus 18.5% in FY2023. In the Overseas Working Business, revenue increased by 3.6%, helped by a positive forex effect of 0.58 billion yen, solid temporary staffing revenue in Singapore and higher permanent placement revenue in Australia; segment profit rose 69.4%, and normalized segment profit rose 50.8%.

Segment	Metric (Billions of yen)	FY2026	FY2025	Change
Domestic Working Business	Revenue	88.26	83.09	+6.2%
Domestic Working Business	Segment profit	3.57	3.25	+10.1%
Overseas Working Business	Revenue	58.50	56.44	+3.6%
Overseas Working Business	Segment profit	2.42	1.43	+69.4%
Overseas Working Business	Segment profit (normalized basis)	2.15	1.42	+50.8%

Segment profit to net sales was 4.1% in the Domestic Working Business and 4.1% in the Overseas Working Business for Q4 FY2026. For the Overseas Working Business, the actual rates in FY2026 were 1 AUD = 100 yen and 1 SGD = 117 yen, against 1 AUD = 100 yen and 1 SGD = 114 yen in FY2025; the company discloses an annual sensitivity to a 1 yen change of 366 million yen in revenue and 12 million yen in profit for AUD, and 166 million yen in revenue and 9 million yen in profit for SGD.

Progress on Medium-Term Plan KPIs (WILL-being 2026)

The company also reported the final-year progress of the KPIs under the previous Medium-term Management Plan (WILL-being 2026). These are operational indicators and are separate from the financial figures above. In the construction management engineer domain, the number of hires per year was 1,672 against a plan of 1,500 (111.5% of plan, rated “Good”), while the retention rate was 70.8% against a plan of 71.5% (-0.7pt, rated “Poor”), an improvement of 2.4pt versus FY2025. The number of workers on assignment for permanent employee staffing was 4,031 against a plan of 3,500 (115.2%, up 581 from the end of the previous fiscal year), and the number of foreign talent supported through the Foreign Talent Management Services was 4,626 against a plan of 3,500 (132.2%, up 1,484), rated “Excellent.”

FY2027 Forecast

For FY2027, revenue is expected to increase by 6.9%, with revenue growth expected in permanent employee staffing/outsourcing, foreign talent management services and permanent placement in the Domestic Working Business, as well as in temporary staffing and permanent placement in the Overseas Working Business. Operating profit is expected to increase by 3.7%, while normalized operating profit excluding temporary gains and losses included in the corresponding previous period is expected to increase by 13.1%. In the Overseas Working Business, segment profit is forecast to decrease by 10.2% because government subsidies are not factored into the plan, with a 1.2% increase expected on a normalized basis. The planned rates for FY2027 are 1 AUD = 105 yen and 1 SGD = 121 yen. The company notes that although there is a possibility of an impact on the economy from the situation in the Middle East, this factor is not incorporated into the current earnings forecasts.

Item (Billions of yen)	FY2027 Forecast	FY2026 (Actual)	Change
Revenue	157.00	146.85	+6.9%
Operating profit	3.40	3.27	+3.7%
EBITDA	6.44	5.63	+14.4%
Domestic Working Business — Revenue	93.85	88.26	+6.3%
Domestic Working Business — Operating profit	4.29	3.57	+19.9%
Overseas Working Business — Revenue	62.94	58.50	—
Overseas Working Business — Operating profit	2.18	2.42	-10.2%

Shareholder Returns

The shareholder return policy under the new Medium-term Management Plan (FY2027–FY2029) is built on progressive dividends — maintaining or increasing dividends, with no decreases in principle — and a total payout ratio of 30% or higher, with flexible treasury share acquisitions to be evaluated as needed based on performance progress during the period. The dividend per share was 44 yen for FY2026, with a total payout ratio of 43.9%. In the cash allocation policy, share buybacks are to be carried out flexibly based on stock price levels and progress in financial results.

Fiscal year	Dividend per share	Total payout ratio
FY2021	¥24	22.9%
FY2022	¥34	23.6%
FY2023	¥44	31.2%
FY2024	¥44	36.4%
FY2025	¥44	87.9%
FY2026	¥44	43.9%

Medium-Term Management Plan (WILL-being 2029)

The new Medium-term Management Plan sets a management target of 4.7 billion yen in normalized consolidated operating profit for FY2029, against 3.0 billion yen in FY2026, a CAGR of +16.1%. The plan also refers to an upside target of 5.5 billion yen, which is the performance threshold for stock option exercise, equivalent to a CAGR of +22.4%. By segment, the Domestic Working Business strategy is to expand the talent solutions business for permanent employees and foreign workers, and the Overseas Working Business strategy is to strengthen profitability with a focus on productivity. Over the three-year period, the Domestic Working Business is expected to add 1.87 billion yen and the Overseas Working Business 0.26 billion yen, while headquarters and others are expected to reduce profit by 0.43 billion yen.

Metric	FY2026 Result	FY2029 Plan	CAGR
Consolidated operating profit (normalized)	¥3.0 billion	¥4.7 billion	+16.1%
Domestic Working Business segment profit	¥3.6 billion	¥5.4 billion	+15.1%
Overseas Working Business segment profit	¥2.1 billion	¥2.4 billion	+3.9%

In the Domestic Working Business, gross profit is targeted to reach 25.0 billion yen or higher in FY2029, from 19.1 billion yen (gross profit margin 21.7%) in FY2026 and 15.5 billion yen (18.5%) in FY2023, with the share of gross profit from the key strategic services rising from 39.4% in FY2023 to 61.2% in FY2026 and to 75% or higher in FY2029. On capital efficiency, the FY2026 results were an ROE of 12.3%, a PBR of 1.4 times and a PER of 13.3 times, and the company aims for an ROE of 15% or higher by FY2029. An M&A budget of 10.0 billion yen has been set for the three-year period.

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