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Financial results presentation9163Nareru Group Inc.Information and Communications, Services and Others

Second-Quarter Financial Results Briefing Materials for the Fiscal Year Ending October 2026

Revenue increased in the second quarter of the fiscal year ending October 2026, driven by growth in the number of employees on staff and in operation, higher contract rates, and expansion of value-added areas such as construction DX and BPO. Operating and recruiting infrastructure was strengthened and upfront investment was made in growth areas, resulting in lower profit year on year. However, profit items including operating profit exceeded the plan.

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Financial results presentationSecond quarter of the fiscal year ending October 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥12,669 million+7.4%
Operating profit¥1,354 million-11.8%
Ordinary income¥1,318 million-12.2%
Net income930 Millions of yen -14.5%profit for the quarter attributable to owners of the parent
Gross Profit Margin
Rate25.3%
Year on year against the same period last yearDown 1.6 percentage points (26.9% in the same period of the previous year)
Operating profit margin
Rate10.7%
Year on year against the same period last yearDown 2.3 percentage points (13.0% in the same period of the previous year)
Results for the three months of the current quarter
Revenue
¥6,392 million
Gross profit
¥1,560 million
Operating profit
¥630 million
Operating profit margin
9.9 %
Full-year earnings forecast
Revenue
¥29,250 million
Gross profit
¥7,400 million
Operating profit
¥3,010 million
Income before taxes
¥2,940 million
Profit for the period attributable to owners of the parent
¥2,090 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Revenue43.3%
Gross profit43.3%
Operating profit45.0%
Profit before quarterly income taxes44.8%
Quarterly profit attributable to owners of the parent44.5%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue came in below plan, while operating profit exceeded plan. Profit continued to exceed plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year operating profit
Revenue+¥878 million
Cost of labor-¥758 million
Cost of sales: recruiting expenses-¥55 million
Other cost of sales-¥30 million
SG&A personnel expenses-¥110 million
SG&A recruiting expenses-¥114 million
Other income and expense variance+¥8 million
Operating profit versus plan
Revenue-¥860 million
Cost of labor+¥582 million
Cost of sales: recruiting expenses+¥151 million
Other cost of sales+¥62 million
SG&A personnel expenses+¥172 million
SG&A recruiting expenses+¥19 million
Other income and expense variance+¥138 million
New initiatives
  • Promote an implementation-focused construction DX model through strategic business alliances with SkymatiX and Arent
  • Expand the craftspeople referral business through partnerships with regional financial institutions and major non-life insurers
  • Business alliance with BRANU and expansion of the 「職人スカウト」 service, scheduled to launch on 1 July 2026
  • Establishment of the Corporate DX Promotion Department, effective 1 June 2026
  • Replacement of the core system, scheduled to go live in July 2026
  • Expand support for obtaining qualifications, the mentor–mentee program, internal networking events, internal clubs, and internal video distribution
Key KPIsA metric the company considers important as a management benchmark.
  • Number of employees on staff in Construction Solutions3,840 people
    Year on year against the same period last year+346 people
  • Utilization rate in Construction Solutions (excluding employees in training)91.9 %
  • Number of employees on staff in IT Solutions407 people
    Year on year against the same period last year-5 people
  • Utilization rate in IT Solutions (excluding employees in training)92.3 %
  • Attrition rate in Construction Solutions33.3 %
  • Attrition rate in IT Solutions23.2 %
  • Contract rate in Construction Solutions¥525 thousand
  • Contract rate in IT Solutions¥531 thousand
  • Revenue from value-added areas254.1 Year on year %
    Year on year against the same period last year254.1%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Construction solutions
Headcount3,840
Number of employees in operation3,242
Utilization rate91.9%
Contract unit price¥525 thousand
IT Solutions
Headcount407
Number of employees in operation344
Utilization rate92.3%
Contract unit price¥531 thousand
Segment results
Construction Solutions business
Revenue
¥11,405 million
Operating profit
¥1,040 million
Revenue growth8.1%
Year-on-year operating profit growth-15.9%
Segment profit margin9.1%
Headcount
3,840 people
Number of employees on staff year on year+346 people
IT solutions business
Revenue
¥1,263 million
Operating profit
¥101 million
Revenue growth1.7%
Year-on-year operating profit growth25.9%
Segment profit margin8.0%
Headcount
407 people
Number of employees on staff year on year-5 people
Medium-term management plan targets
Target fiscal yearFY2030
Revenue¥50.0 billion
Operating profit¥5 billion
Operating profit margin10%
CAGR15.0%
ROE20% or higher
Financial targets
ROE
TargetFY30: at least 20%
Actual resultsFY25: 14.9%; FY26 forecast: 14.0%
Equity ratio
Actual results61.1%
Market Size / Share
Construction investmentForecast to exceed ¥80 trillion in FY2026
Shortage of skilled construction workersShortage of up to 874,000 skilled construction workers in 2040
Shortage of construction engineersShortage of up to 47,000 construction engineers in 2040
Construction DX market size¥58.6 billion in FY2024; ¥125.0 billion in FY2030
Construction staffing services market growth rateApproximately 7% annually
Number of employees
Number of Employees4,283 people
As ofAs of the end of October 2025
Annual Dividend
Annual dividend per shareAnnual dividend per share: ¥115
Interim¥55
End of period¥60
Payout ratio
FY23: 45.3%; FY24: 43.1%; FY25: 48.2%; FY26 forecast: 48.1%
Acquisition of treasury shares
The company will consider flexible share repurchases and cancellations, taking into account the share price level, financial position, and funding needs for M&A and other factors.
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending October 2026
Net Sales¥12,669 million (YoY +7.4%)
Operating profit¥1,354 million (YoY -11.8%)
Ordinary income¥1,318 million (YoY -12.2%)
Net income930 Millions of yen (profit for the quarter attributable to owners of the parent) (YoY -14.5%)
Gross Profit MarginRate 25.3% / Year on year against the same period last year Down 1.6 percentage points (26.9% in the same period of the previous year)
Operating profit marginRate 10.7% / Year on year against the same period last year Down 2.3 percentage points (13.0% in the same period of the previous year)
Results for the three months of the current quarterRevenue ¥6,392 million / Gross profit ¥1,560 million / Operating profit ¥630 million / Operating profit margin 9.9 %
Full-year earnings forecastRevenue ¥29,250 million / Gross profit ¥7,400 million / Operating profit ¥3,010 million / Income before taxes ¥2,940 million / Profit for the period attributable to owners of the parent ¥2,090 million
Progress against full-year forecastRevenue 43.3% / Gross profit 43.3% / Operating profit 45.0% / Profit before quarterly income taxes 44.8% / Quarterly profit attributable to owners of the parent 44.5%
Self-assessment against the planRevenue came in below plan, while operating profit exceeded plan. Profit continued to exceed plan.
Segment resultsConstruction Solutions business Revenue ¥11,405 million / Operating profit ¥1,040 million / Revenue growth 8.1% / Year-on-year operating profit growth -15.9% / Segment profit margin 9.1% / Headcount 3,840 people / Number of employees on staff year on year +346 people / IT solutions business Revenue ¥1,263 million / Operating profit ¥101 million / Revenue growth 1.7% / Year-on-year operating profit growth 25.9% / Segment profit margin 8.0% / Headcount 407 people / Number of employees on staff year on year -5 people
Breakdown of Factors Affecting the ChangeYear-on-year operating profit Revenue +¥878 million / Cost of labor -¥758 million / Cost of sales: recruiting expenses -¥55 million / Other cost of sales -¥30 million / SG&A personnel expenses -¥110 million / SG&A recruiting expenses -¥114 million / Other income and expense variance +¥8 million / Operating profit versus plan Revenue -¥860 million / Cost of labor +¥582 million / Cost of sales: recruiting expenses +¥151 million / Other cost of sales +¥62 million / SG&A personnel expenses +¥172 million / SG&A recruiting expenses +¥19 million / Other income and expense variance +¥138 million
Key KPIsIndicator name Number of employees on staff in Construction Solutions / Value 3,840 people / Year on year against the same period last year +346 people, Indicator name Utilization rate in Construction Solutions (excluding employees in training) / Value 91.9 % / Year on year against the same period last year Not disclosed, Indicator name Number of employees on staff in IT Solutions / Value 407 people / Year on year against the same period last year -5 people, Indicator name Utilization rate in IT Solutions (excluding employees in training) / Value 92.3 % / Year on year against the same period last year Not disclosed, Indicator name Attrition rate in Construction Solutions / Value 33.3 % / Year on year against the same period last year Not disclosed, Indicator name Attrition rate in IT Solutions / Value 23.2 % / Year on year against the same period last year Not disclosed, Indicator name Contract rate in Construction Solutions / Value ¥525 thousand / Year on year against the same period last year Not disclosed, Indicator name Contract rate in IT Solutions / Value ¥531 thousand / Year on year against the same period last year Not disclosed, Indicator name Revenue from value-added areas / Value 254.1 Year on year (%) / Year on year against the same period last year 254.1%
Unit price and quantity metricsConstruction solutions Headcount 3,840 / Number of employees in operation 3,242 / Utilization rate 91.9% / Contract unit price ¥525 thousand / IT Solutions Headcount 407 / Number of employees in operation 344 / Utilization rate 92.3% / Contract unit price ¥531 thousand
Number of employeesNumber of Employees 4,283 people / As of As of the end of October 2025 / Changes during the period and hiring plan Not disclosed
Medium-term management plan targetsTarget fiscal year FY2030 / Revenue ¥50.0 billion / Operating profit ¥5 billion / Operating profit margin 10% / CAGR 15.0% / ROE 20% or higher
Financial targetsROE Target FY30: at least 20% / Actual results FY25: 14.9%; FY26 forecast: 14.0% / Equity ratio Actual results 61.1%
Annual DividendAnnual dividend per share Annual dividend per share: ¥115 / Interim ¥55 / End of period ¥60
Payout ratioFY23: 45.3%; FY24: 43.1%; FY25: 48.2%; FY26 forecast: 48.1%
Acquisition of treasury sharesThe company will consider flexible share repurchases and cancellations, taking into account the share price level, financial position, and funding needs for M&A and other factors.
Market Size / ShareConstruction investment Forecast to exceed ¥80 trillion in FY2026 / Shortage of skilled construction workers Shortage of up to 874,000 skilled construction workers in 2040 / Shortage of construction engineers Shortage of up to 47,000 construction engineers in 2040 / Construction DX market size ¥58.6 billion in FY2024; ¥125.0 billion in FY2030 / Construction staffing services market growth rate Approximately 7% annually
New initiativesPromote an implementation-focused construction DX model through strategic business alliances with SkymatiX and Arent, Expand the craftspeople referral business through partnerships with regional financial institutions and major non-life insurers, Business alliance with BRANU and expansion of the 「職人スカウト」 service, scheduled to launch on 1 July 2026, Establishment of the Corporate DX Promotion Department, effective 1 June 2026, Replacement of the core system, scheduled to go live in July 2026, Expand support for obtaining qualifications, the mentor–mentee program, internal networking events, internal clubs, and internal video distribution
Items this document does not state (7)
Selling, general and administrative expensesNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue increased due to growth in the number of employees on staff and in operation, mainly in the Construction Solutions business, higher contract rates, and expansion of value-added areas such as construction DX staffing and BPO. Factors behind the decline in profit included higher personnel expenses associated with strengthening sales and recruiting capabilities, increased recruiting expenses and other costs, and upfront investment in growth areas such as construction DX and craftspeople referrals. Operating profit exceeded the plan because recruiting operations were optimized and expenses controlled in response to supply and demand conditions.

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Second-Quarter Financial Results Briefing Materials for the Fiscal Year Ending October 2026 | Nareru Group Inc. (9163) timely disclosure | Komori