Japan Exchange Group (8697): FY2025 Results Summary — Record Profit as Trading and Clearing Revenue Surge

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

Japan Exchange Group (JPX) reported consolidated operating revenue of JPY198,735 million for FY2025, up 22.5% year on year, as all revenue categories increased amid a lively Japanese stock market. Operating income rose 29.0% to JPY116,289 million, and net income attributable to owners of the parent company increased 29.5% to JPY79,139 million. Operating expenses increased 11.4% to JPY83,598 million, driven mainly by a higher amount returned to clearing participants for deposited collateral assets related to interest rate swap transactions, etc.

Consolidated Results (Full-Year Actual)

Revenue from deposited collateral assets related to interest rate swap transactions, etc. contributed significantly to the increase in clearing services revenue, while trading services revenue also rose on higher cash equity trading value. EBITDA for FY2025 was JPY135,249 million, up 24.3% year on year.

Item	FY2025	FY2024	y/y
Operating Revenue	198,735	162,230	+22.5%
Operating Expenses	83,598	75,071	+11.4%
Operating Income	116,289	90,122	+29.0%
Net Income (attributable to owners of the parent company)	79,139	61,092	+29.5%
EBITDA	135,249	108,812	+24.3%

Segment Results

By revenue category, Clearing Services Revenue rose the most in percentage terms, up 57.5% year on year, followed by Trading Services Revenue, up 20.0%. Trading Services Revenue remained the largest single category at 38.9% of total operating revenue, followed by Clearing Services Revenue at 27.3%, Information Services Revenue at 16.9%, Listing Services Revenue at 9.4%, and System Services Revenue at 7.0%.

Revenue Category	FY2025 (JPY mil.)	FY2024 (JPY mil.)	y/y
Trading Services Revenue	77,399	64,515	+20.0%
Clearing Services Revenue	54,242	34,445	+57.5%
Listing Services Revenue	18,682	17,309	+7.9%
Information Services Revenue	33,669	31,899	+5.5%
System Services Revenue	13,838	13,269	+4.3%
Other Operating Revenue	902	791	+14.1%
Total Operating Revenue	198,735	162,230	+22.5%

FY2026 Forecast

For FY2026, JPX forecasts operating revenue of JPY205,000 million, up 3.2% year on year, on higher expected revenue from deposited collateral assets related to interest rate swap transactions. However, operating income and net income are forecast to decrease, to JPY115,000 million (-1.1%) and JPY77,500 million (-2.1%) respectively, as operating expenses are expected to increase due to higher system-related expenses and a larger amount returned to clearing participants.

Item	FY2026 (Forecast)	FY2025 (Actual)	y/y
Operating Revenue (JPY mil.)	205,000	198,735	+3.2%
Operating Expenses (JPY mil.)	91,000	83,598	+8.9%
Operating Income (JPY mil.)	115,000	116,289	(1.1%)
Net Income (JPY mil.)	77,500	79,139	(2.1%)
Earnings Per Share	JPY 75.39	JPY 76.81	–
Dividend Per Share	JPY 61	JPY 61	–
Dividend Payout Ratio	80.9%	79.4%	–

Shareholder Returns

To further enhance capital efficiency and shareholder returns in accordance with the capital policy set forth in the Medium-Term Management Plan 2027, JPX will pay ordinary dividends and acquire own shares. As a result, the total return ratio for FY2025 is expected to be approx. 106%. The forecasted dividend is JPY61 per share (interim JPY30, year-end JPY31), with a forecasted ordinary dividend payout ratio of 80.9% (an estimate that does not take the acquisition of own shares into consideration).

Item	Details
Acquisition Amount	Maximum of JPY 20 billion
No. of Shares to be Acquired	Maximum of 40 million shares (3.9% of total no. of issued shares)
Acquisition Period	June 1, 2026 – October 26, 2026
Acquisition Method	Purchase on the auction market

Medium-Term Plan / Topics

ROE for FY2025 was 23.1%, continuing to exceed the cost of shareholders’ equity, which JPX estimates at around 6%-8% based on several calculation models (CAPM-based, dividend discount model, residual income model, and calculation back from PBR). PBR has remained above 3.0 on an ongoing basis. Under the Medium-Term Management Plan 2027 (a three-year plan starting from FY2025), JPX’s financial target is to achieve ROE of 20% or more for three consecutive years. As of April 2026, JPX estimates the minimum required level of equity capital at approximately JPY270 billion. Under its dividend policy of maintaining a payout ratio of 60% or more, JPX plans to give shareholder returns totaling approximately JPY230 billion (including acquisitions of own shares of approximately JPY60 billion) over the three years of the Medium-Term Management Plan 2027.

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.