Amvis Holdings (7071): FY2025 Results Summary — Net Sales Up 15.8%, Profit Halved on Special Investigation Committee Impact

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

Amvis Holdings, Inc. (TSE Prime, 7071), which operates “Ishinkan” hospices specialized in nursing and care services for patients in terminal stages, released its Business and Financial Highlights for the fiscal year ended September 30, 2025 on November 10, 2025. Net sales grew 15.8% year on year to JPY 49,174 million, while EBITDA declined 28.2% to JPY 8,966 million and net profit fell 50.8% to JPY 3,660 million. The company states that the results were in line with the revised forecast, taking into account the impact of the Special Investigation Committee and other factors. Note: Amvis’s fiscal year ends in September; the materials label the fiscal year ended September 30, 2025 as “FY25,” and tables in this article follow the labels used in the materials.

Consolidated Results (Full-Year Actual)

Net sales increased 15.8% year on year, but the EBITDA margin decreased by 11.1 percentage points to 18.2%. Against the revised forecast, net sales landed 0.2% above and EBITDA 0.7% above. Due to the impact of the Special Investigation Committee, the occupancy rate for existing facilities settled at 81.5%, while that for newly opened facilities was 36.2%. In the EBITDA bridge from FY24 (JPY 12,480 million) to FY25 (JPY 8,966 million), sales gains at existing facilities (+2,969) and at new facilities (+3,403) were outweighed by higher personnel expenses at existing facilities (3,846), personnel expenses at new facilities (2,632), rent (475), personnel expenses in SG&A (378), and other factors (2,556) (all in JPY million).

Item (JPY MM / %)	FY24 Actual	FY25 Revised Forecast	FY25 Actual	YoY Change	Vs Forecast Change
Net Sales	42,475	49,100	49,174	+15.8%	+0.2%
EBITDA	12,480	8,900	8,966	(28.2%)	+0.7%
EBITDA Margin (%)	29.4%	18.1%	18.2%	(11.1pt)	+0.1pt
Operating Profit	10,612	6,100	6,162	(41.9%)	+1.0%
Operating Margin (%)	25.0%	12.4%	12.5%	(12.5pt)	+0.1pt
Net Profit	7,438	3,600	3,660	(50.8%)	+1.7%
Net Margin (%)	17.5%	7.3%	7.4%	(10.1pt)	+0.1pt

In FY25, the company opened 28 new facilities, expanded 1 facility, and opened 1 facility through a business transfer, operating 130 facilities (6,706 total beds) as of the end of September 2025. In medical consulting, projects for business acquisitions from multiple bankrupt entities progressed, and the acquisition of 6 medical institutions was completed. Note that EBITDA is defined in the materials as operating profit plus depreciation, amortization of goodwill, and share-based compensation expenses.

Segment Results

While Amvis had previously operated under a single segment focused on the Ishinkan Business, from the current fiscal year it has separated the Comprehensive Medical Support Business as an independent segment, positioning it as a new growth driver while maintaining the Ishinkan Business as a social infrastructure foundation. In FY25, the Ishinkan Business recorded net sales of JPY 48,641 million, EBITDA of JPY 8,615 million, and operating profit of JPY 5,811 million. The Comprehensive Medical Support Business recorded net sales of JPY 533 million, operating profit before provisions of JPY 405 million, and operating profit of JPY 351 million.

Segment	Item (JPY MM / %)	FY25 Actual	FY26 Forecast	YoY Change
Ishinkan Business	Net Sales	48,641	50,850	+4.5%
Ishinkan Business	EBITDA	8,615	6,500	(24.6%)
Ishinkan Business	Operating Profit	5,811	3,200	(44.9%)
Comprehensive Medical Support Business	Net Sales	533	850	+59.5%
Comprehensive Medical Support Business	Operating Profit before Provision	405	600	+48.1%
Comprehensive Medical Support Business	Operating Profit	351	600	+70.9%

FY26 Forecast

For FY26, the company expects overall net sales to increase while operating profits decrease, due to the decline in profit margins of the Ishinkan Business even as the Comprehensive Medical Support Business grows. In the Ishinkan Business, 9 new facilities (526 beds) are planned to open during FY26, primarily in the Tokyo metropolitan and eastern Japan areas, bringing the total to 139 facilities with an expected capacity of 7,232 beds as of September 30, 2026. The occupancy rate, which temporarily declined due to the impact of the Special Investigation Committee, is expected to gradually recover toward the end of the fiscal year, while the forecast factors in the potential impact of the scheduled medical fee revision in FY26 and higher personnel and related expenses reflecting inflation.

Item (JPY MM / %)	FY25 Actual	FY26 Forecast	YoY Change
Net Sales	49,174	51,700	+5.1%
EBITDA	8,966	7,100	(20.8%)
EBITDA Margin (%)	18.2%	13.7%	(4.5pt)
Operating Profit	6,162	3,800	(38.3%)
Operating Margin (%)	12.5%	7.4%	(5.2pt)
Net Profit	3,660	2,100	(42.6%)
Net Margin (%)	7.4%	4.1%	(3.4pt)

Shareholder Returns

The company considers the distribution of profits to shareholders a priority management issue, with a basic policy of stable dividends paid once a year, taking into account factors including the market environment, regulatory changes, and financial soundness. In FY26, the dividend per share is expected to be 4 yen, the same as last year. Over the medium to long term, the dividend policy will be reexamined in line with future re-growth.

Fiscal Year	Dividend per Share (JPY)
FY22	3.00
FY23	3.00
FY24	4.00
FY25	4.00
FY26 (forecast)	4.00

Balance Sheet, Cash Flow and Medium-Term Topics

Total assets at the end of FY25 stood at JPY 83,947 million (+16.9% versus FY24), with borrowings of JPY 31,740 million (+30.2%) and an equity ratio of 43.0% (down 3.2 percentage points), which the company expects to keep well above its target of 30%. Cash flows from operating activities were JPY 6,025 million and cash flows from investing activities were JPY (10,427) million; the company is changing its investment stance to prioritize free cash flow (cash flows from operating activities minus cash flows from investing activities) due to the delay in the payback period. For the Comprehensive Medical Support Business, the plan calls for net sales of JPY 1,220 million in FY27 and JPY 1,670 million in FY28, with operating profit before provisions of JPY 830 million and JPY 1,130 million respectively, a revenue growth rate of CAGR 46.3%, and ROIC of 30.0% in FY28. The company also states that it has sincerely accepted the recommendations from the Special Investigation Committee and is promoting the establishment of operational and organizational systems, including standardization of home-visit nursing operations, enhancement of recruitment and staffing functions, restructuring of internal controls, and improved internal communication.

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.