Nippon Express Holdings (9147): FY2025 Results Summary — Net Income Falls 91.5% on Europe Goodwill Impairment, FY2026 Eyes ¥100.0 Billion Operating Income

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

NIPPON EXPRESS HOLDINGS, INC. released its Financial Results Presentation for the fiscal year ended December 2025 (FY2025) on February 13, 2026. Revenues were ¥2,574.8 billion, down ¥(2.8) billion (-0.1%) year on year, while consolidated segment income (business profit) rose to ¥65.9 billion, up +¥2.3 billion (+3.8%), and operating income rose to ¥51.4 billion, up +¥2.4 billion (+4.9%). Profit attributable to owners of parent, however, fell sharply to ¥2.6 billion, down ¥(29.0) billion (-91.5%) year on year, mainly due to an increase in corporate income tax expense. The main drivers behind the change in operating income were an impairment of goodwill in Europe and an increase in gains on sale of land.

Consolidated Results (Full-Year Actual)

Business profit and operating income increased year on year, supported by increased profits in Logistics Japan and firm performance in Logistics Support segment volume. Annual air forwarding volumes increased year on year, while ocean freight forwarding volumes declined due to continued BCO shifts despite expanding demand in the ocean cargo transportation market. Revenues declined as lower revenues in domestic logistics stemming from the integration of Meitetsu Transportation in the special combined delivery business offset the acquisition of Simon Hegele in February 2025. Restructuring costs for overseas regions totaled ¥2.5 billion. Figures in the table below are shown in 100 million yen (rounded down), as presented in the source materials.

Item	FY2025 Results	FY2024 Results	Difference YoY (%)
Revenues	25,748	25,776	(28) (-0.1%)
Consolidated Segment Income (Business Profit)	659	635	+23 (+3.8%)
Business Profit Ratio	2.6%	2.5%	–
Operating Income	514	490	+24 (+4.9%)
Profit Attributable to Owners of Parent	26	317	(290) (-91.5%)

The breakdown of the change in operating income versus the previous forecast (announced November 12) was: business profit 659 (vs. forecast 700, difference (41)); impairment loss on goodwill in Europe (592) (vs. forecast (500), difference (92)); profit from the sale of low-yield real estate +742 (vs. forecast 510, difference +232; includes C-NEX sale proceeds of ¥74.2 billion); business portfolio management/business transfer (73) (vs. forecast (70); covering NX Real Estate and NX Japan Sea Warehouse); additional tax assessment on NX Italia (21) (vs. forecast 0); Second Career Support costs (90) (vs. forecast (90)); and other items (109) (vs. forecast (50)), resulting in operating income of 514 (100 million yen).

Segment Results

By segment (figures in 100 million yen, rounded down, as reported): Japan revenues were 12,603 (-0.1% YoY) with segment income (business profit) of 445 (+9.8%). The Overseas Segment Total posted revenues of 9,871 (+0.1%) but segment income fell 26.6% to 195, with Europe segment income down 57.4% to 47 amid continued weak economic conditions. [Reference] cargo-partner (within Europe, before consolidation) posted Jan-Dec revenues of ¥247.0 billion and a business profit deficit of ¥(0.6) billion, with causes of the deficit cited as base integration costs of ¥1.0 billion and reconstruction from local accounting standards to IFRS standards of ¥0.7 billion, among other factors. Logistics Support revenues rose 6.2% to 4,467 with segment income up 31.8% to 161, supported by steady volume and spot projects. Domestic Business profit increased mainly due to improvements at subsidiaries, the impact of rate revisions, and steady performance in Logistics Support, while Overseas Business posted lower profit mainly due to lower profit in Europe.

Segment	Revenues FY2025	Revenues FY2024	Business Profit FY2025	Business Profit FY2024
Japan	12,603	12,620	445	405
Americas	1,380	1,530	57	53
Europe	5,279	5,017	47	112
East Asia	1,658	1,739	57	45
South Asia & Oceania	1,554	1,576	32	54
Overseas Segment Total	9,871	9,863	195	266
Security Transportation	695	685	24	24
Heavy Haulage & Construction	485	500	53	53
Logistics Support	4,467	4,204	161	122
Adjustments	(2,375)	(2,098)	(219)	(235)

FY2026 Forecast

For FY2026, Nippon Express Holdings forecasts revenues of ¥2,700.0 billion (+¥125.1 billion, +4.9%), consolidated segment income (business profit) of ¥90.0 billion (+¥24.0 billion, +36.4%), operating income of ¥100.0 billion (+¥48.5 billion, +94.2%), and profit attributable to owners of parent of ¥60.0 billion (+¥57.3 billion). ROE is forecast at 7.0% (+6.7pt) and ROIC (Business Profit Before Taxes) at 5.3% (+2.2pt) per the executive summary. The company expects logistics demand to continue recovering in Japan and overseas from the second half of the year, though a full recovery will take time, and plans cost reductions through structural reforms amid an uncertain business environment reflecting ongoing geopolitical risks. [Reference] cargo-partner full-year forecast (within Europe, before consolidation): revenues ¥280.0 billion (+¥32.9 billion YoY); business profit ¥2.8 billion (+¥3.4 billion YoY; excludes amortization of intangible assets of ¥0.2 billion).

Item	FY2026 Forecast	FY2025 (Actual)	Difference YoY (%)
Revenues	27,000	25,748	+1,251 (+4.9%)
Segment Income (Business Profit)	900	659	+240 (+36.4%)
Business Profit Ratio	3.3%	2.6%	–
Operating Income	1,000	514	+485 (+94.2%)
Profit Attributable to Owners of Parent	600	26	+573 (-)
Overseas Revenues	11,140	9,871	+1,268 (+12.8%)
ROE	7.0%	0.3%	–
ROIC (Business Profit Before Taxes)	5.4%	3.1%	–

To achieve its FY2026 operating income target of ¥100.0 billion or greater (from FY2025 full-year operating income results of ¥68.5 billion, excluding impairment losses, gains on land sales, and other temporary gains or losses), the company outlined three initiatives: (1) grow business profit through strategies detailed in the business plan (target amount ¥11.5 billion); (2) control costs, including a new Second Career Support Program, aiming to improve the SG&A-to-sales ratio by about 1 point from the FY2024 level to roughly 5% by 2028 (target amount ¥10.0 billion); and (3) sell land, with a FY2026 implementation target of approximately ¥20 billion and a 2028 cumulative sales target raised from over ¥50 billion to over ¥150 billion (target amount ¥19.0 billion). Other forecast items (earthquake resistance measures, etc.) are expected to have a ¥(9.0) billion impact.

Shareholder Returns

Nippon Express Holdings’ full-year dividend per share was ¥100 for FY2025 (ending December 2025), unchanged from FY2024, and is forecast at ¥100 for FY2026 (ending December 2026). The company conducted a 3-for-1 stock split of common stock effective January 1, 2025, and prior-period dividend figures reflect this split. Under Business Plan 2028, the company targets a total return ratio of over 55% (cumulative total FY2024-FY2028), a dividend payout ratio of over 40%, and a minimum annual dividend per share of ¥100, alongside an ROE target of over 10% and an equity ratio target of 35%. For the fiscal year ending December 2025, the figures include the impact of impairment of European goodwill, real estate sales, and share buybacks; the estimated dividend payout ratio and total return ratio excluding these items is 200.1%.

Fiscal Year	Dividend per Share (Full-Year)	ROE
FY2018 (ended March)	40	1.2 (JGAAP)
FY2019 (ended March)	51.67	9.2 (JGAAP)
FY2020 (ended March)	51.67	3.2 (JGAAP)
FY2021 (ended March)	61.67	10.0 (JGAAP)
FY2021 (ended December)	80	8.9 (JGAAP)
FY2022 (ended December)	133.33 (including ¥50 commemorative dividend)	15.9 (JGAAP)
FY2023 (ended December)	100	5.9/4.8 (JGAAP/IFRS)
FY2024 (ended December)	100	3.8 (IFRS)
FY2025 (ending December)	100	0.3 (IFRS)
FY2026 (ending December, Forecast)	100	7.0

Medium-Term Plan / Business Plan 2028

Under Business Plan 2028, Nippon Express Holdings targets FY2028 revenues of ¥3,000 billion (from ¥2,239 billion in FY2023), business income of ¥150 billion (from ¥81.2 billion in FY2023), ROE of over 10% (from 4.8% in FY2023), overseas sales of ¥1,200 billion (from ¥585.5 billion in FY2023) alongside cumulative M&A of ¥370 billion, and a Business Profit Ratio for Logistics Japan of 5.9% (from 3.9% in FY2023). The basic policy is to improve global competitiveness and achieve business growth under groupwide optimization, increase competitiveness and profitability of businesses and enhance financial value through well-balanced strategic policies and a well-defined business portfolio and division of roles, and practice sustainability management that contributes to solutions for social issues. The three major strategic pillars are accelerating growth in the global market, rebuilding businesses in Japan, and promoting sustainability management.

On M&A and post-merger integration (PMI) progress: for cargo-partner (CP), acquired to strengthen the Central and Eastern Europe network and expand forwarding volumes, 2025 results were air cargo forwarding volume of 182kt (+3.0% YoY) and ocean forwarding volume of 144 thousand TEU (-10.7% YoY); the company expects to largely complete operational efficiency improvements through organizational and functional integration within the current fiscal year, the third year since the acquisition, with an estimated impact from site consolidation/reorganization of ¥1.4 billion in 2026. The company noted that CP achieved its targeted forwarder ranking (5th) and air cargo volumes, though ocean forwarding volumes fell slightly short of targets over the two-year period, reflecting weaker European market conditions. For Simon Hegele (SH), a logistics company with strengths in Medtech (services for medical devices) acquired in February 2025, the company is pursuing cross-selling between NX forwarding and SH logistics services, including use of SH warehouses by NX Europe customers from 2025 and strengthening of sales and operational structures within NX Nippon Express from 2026. In Japan, the company introduced an in-house company system, spun off the Heavy Haulage & Construction business, and integrated specialized combined delivery operations, all effective January 2025, as part of its Rebuild Businesses in Japan initiative; Japan Logistics segment business profit ratio was 3.5% in Q4 FY2025 versus 3.2% in the prior-year quarter.

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