Careerlink (6070): FY2025 Results Summary — Local-Government BPO Drives a 44.6% 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: this article covers the fiscal year ended March 31, 2026, which Careerlink labels “FY3/26” in its presentation; this site classifies it as FY2025. All labels in the text and tables below follow the company’s own presentation. Careerlink Co., Ltd. (6070), a Japanese staffing and business process outsourcing (BPO) provider, reported net sales of 44,642 million yen for FY3/26, up 10.5% year on year, and operating profit of 3,895 million yen, up 44.6%. Ordinary profit rose 45.0% to 3,915 million yen and profit attributable to owners of parent rose 41.5% to 2,588 million yen. The company attributes the result primarily to the strong performance of its core BPO-related business.

Consolidated Results (Full-Year Actual)

Consolidated net sales for the fiscal year ended March 31, 2026 increased by 10.5% year on year to 44.64 billion yen. Although there was a reduction in the scale of large-scale private-sector BPO projects that had been in operation in the previous fiscal year, order volume remained strong in the core BPO-related business for local governments and in the manufacturing human resources services business. On profit, although personnel expenses and investments in systems and other areas increased in connection with business expansion and the diversification of operations, operating profit increased by 44.6% year on year to 3.89 billion yen due to the efficient management of received orders and cost reductions, including recruitment-related expenses. The operating margin was 8.7%, up 2.0 points from 6.7% in FY3/25; the ordinary profit margin was 8.8% (FY3/25: 6.7%) and the net income margin 5.8% (FY3/25: 4.5%).

Item (Unit: Millions of yen)	FY3/24	FY3/25	FY3/26	Change from the previous period (%)
Net sales	43,791	40,397	44,642	10.5%
Clerical human resources service business	36,682	32,582	35,534	9.1%
BPO-related business segment	27,009	23,956	26,715	11.5%
CRM-related business segment	4,271	3,169	3,587	13.2%
Office services business segment	5,402	5,455	5,231	(4.1%)
Manufacturing human resources service business	6,818	7,531	8,855	17.6%
Other	290	283	252	(10.9%)
Operating profit	3,279	2,693	3,895	44.6%
Ordinary profit	3,280	2,700	3,915	45.0%
Profit attributable to owners of parent	2,201	1,829	2,588	41.5%

Segment Results

In the clerical human resources service business, transactions with local governments expanded through projects related to social security and tax numbers, long-term contracts covering various counter operations, and short-term projects related to the amendment to the Family Registration Act. In transactions with private enterprises, order volume progressed steadily for projects with central government agencies as end clients through major BPO operators, as well as for large-scale field operation projects from financial institutions; as a result, net sales in the BPO-related business segment increased by 11.5% year on year. The CRM-related business segment grew 13.2% year on year on expanded worker dispatch projects at call centers for private enterprises through existing clients at local branch offices, even though large-scale projects in the Tokyo metropolitan area that had been in operation in the previous fiscal year were concluded. The office services business segment declined 4.1% year on year due to the downsizing of new NISA projects for financial institutions and the downsizing and conclusion of short-term worker dispatch projects for local governments and public corporations associated with local governments. In the manufacturing human resources service business, both net sales and profit grew, supported by large-scale government policy-related dispatch projects from a housing equipment manufacturing client, expanded orders from existing clients, orders from new clients, increases in dispatching fees and cost reductions. Other saw a decrease in both sales and profit due to a decrease in the number of personnel and factors such as organizational changes at clients.

Segment	Metric (Unit: Millions of yen)	FY3/25 Results	FY3/26 Results	Y/y Change
Clerical human resources	Net sales	32,582	35,534	109.1%
Clerical human resources	Segment profit (margin)	2,398 (7.4%)	3,517 (9.9%)	146.6%
Manufacturing human resources	Net sales	7,531	8,855	117.6%
Manufacturing human resources	Segment profit (margin)	256 (3.4%)	353 (4.0%)	138.0%
Other	Net sales	283	252	89.1%
Other	Segment profit (margin)	38 (13.5%)	24 (9.5%)	62.9%

Within the BPO-related business segment, sales to local governments were 15,219 million yen and sales to private companies were 11,496 million yen in FY3/26, for a total of 26,715 million yen; the ratio of local government sales to BPO sales was 57%, against 53% in FY3/25 (12,726 million yen and 11,230 million yen for a total of 23,956 million yen). For local governments, although the number of projects decreased slightly (95 in FY3/26 versus 100 in FY3/25), total BPO net sales exceeded the previous year due to an increase in the average unit price per project (94 versus 87) and an improvement in the multiple-project index (1.7 versus 1.5). For private enterprises, although the average unit price declined (146 versus 173) due to the conclusion of large-scale projects, total net sales exceeded the previous year as the number of projects increased to 79 from 65. As non-financial key performance indicators, the number of orders for BPO projects was 240, a 13.7% increase year on year, and the number of local governments with which the company has transactions rose 5.6% from the previous fiscal year-end to 206.

Full-Year Earnings Forecast for FY3/27

For FY3/27 the company is planning for a 10.0% increase in net sales and a 5.1% increase in operating profit. Careerlink says it will continue to expand and strengthen its transaction base, primarily for the BPO-related business within the mainstay clerical human resource services business, and that in order to further strengthen its transaction base with local governments it will work on strengthening operational structures through the deployment of specialist personnel and make growth investments in AI-related and other areas. The company also notes that, as in previous years, the operating period for BPO projects received during the fiscal year is expected to be longer in the second half than in the first half, and that initial setup costs associated with the launch of projects are expected to be concentrated in the first half, resulting in a plan weighted toward the second half.

Item (Unit: Millions of yen)	FY3/26 Results	FY3/27 Forecast	Increase/decrease rate
Net sales	44,642	49,100	+10.0%
Operating profit	3,895	4,095	+5.1%
Ordinary profit	3,915	4,110	+5.0%
Profit attributable to owners of parent	2,588	2,810	+8.5%
Sales: Clerical human resources	35,534	39,368	+10.8%
Sales: Manufacturing human resources	8,855	9,500	+7.3%
Sales: Other	252	232	△8.3%

Shareholder Returns

Careerlink’s basic policy is to continue to pay appropriate and stable dividends based on a comprehensive assessment of business performance and overall management, while securing the internal reserves necessary for business development for sustainable growth and strengthening the management base. Dividend per share was 120 yen for FY3/26 (actual), unchanged from FY3/25 and FY3/24 (FY3/23: 110 yen). The expected year-end dividend for FY3/27 is 120 yen, with an expected dividend payout ratio of 50.7%, and the company intends to maintain the dividend at 120 yen throughout the period of the medium-term management plan. Careerlink also operates a shareholder benefit program, presenting QUO Cards once a year to shareholders holding one trading lot (100 shares) or more as of September 30, with the card value rising by the number of shares held and for holdings maintained continuously for three years or longer (for example, 500 shares or over: a QUO Card worth 2,000 yen, or 5,000 yen if held continuously for three years or longer).

Medium-Term Management Plan

The medium-term management plan runs to FY3/29 and is primarily focused on strengthening the foundation for sustainable growth with a view toward further expansion from the fiscal year ending FY3/30 onward. The company positions FY3/27 as a period for business expansion, while FY3/28 and FY3/29 are designated as periods for developing the foundation for the next stage of growth. In light of the uncertain economic environment both in Japan and overseas, the plan places emphasis on achievability. Careerlink plans a three-year compound annual growth rate of approximately 6.7% in net sales and around 5.1% in operating profit, with segment-level three-year CAGRs of 7.0% in the clerical human resources services business and 5.8% in the manufacturing human resources services business. Priority measures are grouped into expansion of the base for performance, proactive investment for sustainable growth, and inorganic growth, including expansion of the area and scale of local government business, promotion of orders for long-term projects, expansion of private enterprise BPO projects, promotion of DX initiatives through the utilization of AI and other technologies, and consideration and promotion of investment in M&A and business alliances. The company also targets recovering and expanding the number of local governments with which it has transactions to approximately 220 by the fiscal year ending March 31, 2029, while assuming a certain level of decrease from FY3/27 onward as welfare-related projects that arose temporarily during the COVID-19 pandemic are expected to be excluded from the scope of recording.

Item (Unit: Millions of yen)	FY3/26 Results	FY3/27 Forecast	FY3/28 Plan	FY3/29 Plan
Net sales	44,642	49,100	51,626	54,290
Operating profit (margin)	3,895 (8.7%)	4,095 (8.3%)	4,305 (8.3%)	4,527 (8.3%)
Ordinary profit (margin)	3,915 (8.8%)	4,110 (8.4%)	4,320 (8.4%)	4,542 (8.4%)
Profit attributable to owners of parent (margin)	2,588 (5.8%)	2,810 (5.7%)	2,953 (5.7%)	3,104 (5.7%)
Sales: Clerical human resources	35,534	39,368	41,404	43,556
Sales: Manufacturing human resources	8,855	9,500	9,984	10,484
Sales: Other	252	232	238	250

Corporate Value and Capital Efficiency

Careerlink states that its ROE of 16.9% (actual results for FY3/26) exceeds its perception of the current cost of shareholders’ equity of 9.8%, and that it will continue to achieve an ROE above the cost of shareholders’ equity by steadily promoting the initiatives set forth in the medium-term management plan. The company notes that its PBR of 1.7x relative to its ROE of 16.9% is generally in line with the trend observed among companies of a similar size, and that despite maintaining a high level of ROE its PER and EBITDA multiples remain below the average of listed companies of a similar size; through the strengthening of IR activities it aims to achieve an appropriate market valuation commensurate with its profitability and growth potential.

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.