Relo Group (8876): FY2025 Results Summary — Revenue Up 5.7% as the Stock Business Base Expands

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

Note: Relo Group labels its most recently completed fiscal year, ended March 31, 2026, as “FY2026/3”; japan-equity.com classifies it as FY2025 in the title and slug, while every figure and label below is kept exactly as it appears in the company’s materials.

Relo Group, Inc. (8876.JP) reported revenue of 151,074 million yen for FY2026/3, up 5.7% year on year, with operating profit of 30,815 million yen, up 1.2%. Profit before income taxes and net income declined year on year because the previous fiscal year included 22,200 million yen recorded as a gain on sale of shares in Nihon Housing Co., Ltd. and a gain on foreign currency translation adjustment. The company plans revenue of 165,000 million yen and operating profit of 34,000 million yen for FY2027/3, and decided to pay a dividend of 69 yen for the fiscal year ended March 31, 2026.

Consolidated Results (Full-Year Actual)

Revenue increased 5.7% year on year, reflecting the strong growth of the stock business. Operating profit grew 1.2%. Operating profit rose 8.4% year on year in the fourth quarter, and the company notes that the growth rate each quarter improved steadily throughout the year.

Item (million yen)	Actual FY2025/3	Actual FY2026/3	YoY
Revenue	142,908	151,074	+5.7%
Operating Profit	30,437	30,815	+1.2％
Profit Before Income Taxes	52,863	30,943	（41.5％）
Net Income	43,317	20,665	（52.3％）

Excluding the gain on the sale of shares in Nihon Housing Co., Ltd. and the gain on foreign currency translation adjustment, the company presents profit before income taxes of 30,644 million yen for FY2025/3 against 30,943 million yen for FY2026/3, up 1.0% year on year, and net income of 20,659 million yen against 20,665 million yen, up 0.0%.

Segment Results

The Outsourcing Business consists of three sub-segments: the Fringe Benefit Business, the Leased Corporate Housing Management Business and the Relocation Support Business. In the Fringe Benefits Business, revenue increased 11.1% year on year, reflecting strong stock revenue, with membership fee revenue climbing 7.8% year on year; the company made upfront investments for product development and enhanced sales capabilities for achievement of the Medium-term Management Plan, and states that operating profit excluding such investments rose 8.7% year on year. In the Leased Corporate Housing Management Business the stock base expanded, reflecting an increase in the number of leased corporate housing units. In the Residential Property Management Business, operating profit fell 1.9% year on year as costs increased, especially personnel expenses under the impact of investment in human resources, although an increase in gross profit was secured. In the Tourism Business, a gain on sale of hotel assets of 1.3 billion yen was posted in the fiscal year under review, up 90 million yen year on year, while hotel operation was impacted by the Expo, disaster warnings and other factors.

Segment (million yen)	Metric	FY2025/3	FY2026/3
Outsourcing Business	Revenue	74,222	80,769
Outsourcing Business	Operating Profit	22,154	22,899
Fringe Benefits Business	Revenue	27,378	30,416
Fringe Benefits Business	Operating Profit	12,269	12,726
Leased Corporate Housing Management Business	Revenue	30,017	32,737
Leased Corporate Housing Management Business	Operating Profit	6,803	7,042
Relocation Support Business	Revenue	16,826	17,615
Relocation Support Business	Operating Profit	3,080	3,131
Residential Property Management Business	Revenue	51,759	52,956
Residential Property Management Business	Operating Profit	8,166	8,012
Tourism Business	Revenue	15,771	16,399
Tourism Business	Operating Profit	4,197	4,344

On the ratio of operating profit for FY2026/3, the presentation shows the Fringe Benefit Business at 36%, the Leased Corporate Housing Management Business at 20%, the Global Relocation Support Business at 9%, the Property Management Business at 23% and the Tourism Business at 12%. Key business volume indicators moved as follows.

Operating indicator	As of March 2026	Change year on year
Fringe benefit membership	7.32 million	+45,000 / +0.6%
Leased Corporate Housing Management	298,141 units	+19,440 units / 7.0%
Number of managed furnished rental units	12,599 units	+2,620 units / 26.3%
Relocation House Rental Management	10,381 units	+430 units / 4.3%
Number of rental units managed (Residential Property Management)	125,535 units	+3,278 units / +2.7%
Number of Global Relocation Support (households)	7,055	+3.1%

FY2027/3 Plan

For FY2027/3 the company plans revenue of 165,000 million yen and operating profit of 34,000 million yen, with the growth rate under the operating profit plan at 10.3%. Management states that it is shifting its axis away from the upfront investment phase towards a growth phase and, using the stock base built up in the previous fiscal year as a starting point, will aim for double-digit profit growth through the growth of existing businesses and the contribution of new products and services.

Item (million yen)	FY2026/3 Actual	FY2027/3 Plan	YoY
Revenue	151,074	165,000	+9.2%
Operating Profit	30,815	34,000	+10.3%
Profit Before Income Taxes	30,943	33,600	+8.6％
Net Income	20,665	22,500	+8.9％

Segment (million yen)	Metric	FY2026/3 Actual	FY2027/3 Plan	YoY
Outsourcing Business	Revenue	80,769	87,500	+6,731 / +8.3%
Fringe Benefits Business	Revenue	30,416	32,500	+2,084 / +6.9%
Leased Corporate Housing Management Business	Revenue	32,737	36,000	+3,263 / +10.0%
Relocation Support Business	Revenue	17,615	19,000	+1,385 / +7.9%
Residential Property Management Business	Revenue	52,956	57,000	+4,044 / +7.6%
Tourism Business	Revenue	16,399	19,500	+3,101 / +18.9%
Outsourcing Business	Operating Profit	22,899	24,800	+1,901 / +8.3%
Fringe Benefits Business	Operating Profit	12,726	13,500	+774 / +6.1%
Leased Corporate Housing Management Business	Operating Profit	7,042	7,800	+758 / +10.8%
Relocation Support Business	Operating Profit	3,131	3,500	+369 / +11.8%
Residential Property Management Business	Operating Profit	8,012	8,900	+888 / +11.1%
Tourism Business	Operating Profit	4,344	5,600	+1,256 / +28.9%

Segment volume plans for FY2027/3 include Leased Corporate Housing Management of 325,000 units (+9.0％), Number of Global Relocation Support of 8,000 households (+13.4%) and Number of Units under Management in the Residential Property Management Business of 130,000 units (+3.6％).

Shareholder Returns

The company decided to pay a dividend for the fiscal year ended March 31, 2026 of 69 yen, against 42 yen for the fiscal year ended March 31, 2025. It is raising the dividend payout ratio targeted during the Medium-Term Management Plan to 50% and aiming for a total return ratio including share buybacks of 60%, with the plan period running from the fiscal year ended March 31, 2026 to the fiscal year ending March 31, 2029. Relo Group is also adopting a progressive dividend policy and committing to distributing dividends twice a year, interim dividends and year-end dividends.

Capital Policy

Under the current Medium-Term Management Plan the company set a clear ROE target of 25% to 30%, raised from 20% or above, to further improve capital efficiency and send a clear indication to the market of a management stance with emphasis on investment efficiency. The other targets are shown unchanged: an adjusted net D/E ratio of 1.0 or below, an equity ratio of 30% or above and adjusted ROIC of 15%. Outstanding convertible bonds are being bought back before maturity and retired where possible to eliminate the risk of dilution in share value and reduction in share price.

Capital allocation was reviewed as a result of the change in dividend policy. Cash inflows are shown as operating cash flow (including turnover of real estate inventory) of ¥100 billion, plus utilization of interest-bearing debt while maintaining financial soundness. Cash outflows comprise shareholder returns of ¥50 billion, increased working capital of ¥10 billion, DX and human capital investments of ¥10 billion, M&A and strategic investments in new areas of ¥10 billion, and M&A and strategic investments in existing areas of ¥30 billion.

Medium-Term Management Plan: The Fourth Olympic Plan

The presentation sets out numerical targets for FY2029/3 (62nd term) for each business, together with the volume targets that underpin them.

Business	FY2029/3 operating profit target	Volume target for FY2029/3
Fringe Benefit Business	22B yen	Membership 10 Million
Leased Corporate Housing Management Business	11B yen	Leased Corporate Housing Management 344,000units
Global Relocation Support Business	5B yen	Number of Global Relocation Support 15,000households
Property Management Business	12B yen	Number of Units under Management 204,000units
Tourism Business	7B yen	This cannot be confirmed from the materials.

As part of cross-selling initiatives, the company established Relo Club Vacations, a joint venture between the Fringe Benefit Business and the Tourism Business, and is introducing benefits services for property owners in the Property Management Business.

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.