ARE Holdings (5857) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 FY2025.3 reached 373.0 billion yen, up 149.7 billion yen year-over-year, with operating profit at 14.7 billion yen, up 6.8 billion yen year-over-year.

• Profit attributable to owners was 11.4 billion yen, an increase of 4.3 billion yen compared to the same quarter last year.

• Revenue for the nine months ended December 31, 2024, was ¥372,969 million, up 67.0% year-over-year, with operating profit at ¥14,686 million (+85.6%) and profit attributable to owners at ¥11,385 million (+60.4%).

• Growth was driven by increased gold collection, higher precious metal prices, and positive performance in North American refining and trading businesses.

• Environmental Preservation business results reflect the exclusion of Japan Waste Corporation as discontinued operations and inclusion of Renatus Co., Ltd. equity method profit.

Financial highlights

• Q3 revenue: 373.0 billion yen (YOY +149.7 billion yen); operating profit: 14.7 billion yen (YOY +6.8 billion yen); profit: 11.4 billion yen (YOY +4.3 billion yen).

• Gross profit for the period was ¥19,465 million, up from ¥13,807 million year-over-year.

• Basic earnings per share rose to ¥148.84 from ¥92.60; diluted EPS increased to ¥134.94 from ¥84.69.

• Q3 plan achievement rates: 77.7% for revenue, 81.6% for operating profit.

• Cash and cash equivalents increased by ¥10,353 million to ¥17,234 million as of December 31, 2024.

Outlook and guidance

• Full-year revenue forecast revised to 480.0 billion yen; operating profit forecast at 18.0 billion yen.

• Full-year revenue forecast remains at ¥480,000 million (+49.0% year-over-year), with operating profit projected at ¥18,000 million and profit attributable to owners at ¥13,148 million.

• Basic EPS for the year ending March 31, 2025, is forecast at ¥172.53.

• Dividend payout ratio for FY2025.3 expected at 54.0% including share buybacks, with a stable dividend policy targeting 40%.

• No changes to previously announced forecasts.