Will Group (6089) Q1 2027 earnings summary

Executive summary

• Revenue reached a record high in Q1 FY2027, increasing 14.6% year-over-year to ¥40,359 million, driven by growth in both Domestic and Overseas Working Businesses and positive forex effects.

• Operating profit surged 135.6% year-over-year to ¥930 million, reflecting improved profitability in Domestic Working and higher gross profit in Overseas Working.

• EBITDA rose 72.3% year-over-year to ¥1,527 million, and profit attributable to owners of parent increased 78.3% to ¥501 million.

• The Domestic Working Business saw steady expansion in permanent employee staffing and outsourcing, while the Overseas Working Business benefited from favorable exchange rates and strong performance in Singapore.

• The new Medium-Term Management Plan “WILL-being 2029” was launched, focusing on talent solutions and profitability improvements.

Financial highlights

• Gross profit increased 26.4% year-over-year to ¥9.34 billion, with gross margin improving by 2.1 points to 23.1%.

• Operating margin improved by 1.2 points to 2.3%.

• Domestic Working Business revenue grew 10.3% to ¥23,371 million; Overseas Working Business revenue grew 21.2% to ¥16,967 million.

• Segment profits rose 50.5% (Domestic) and 49.4% (Overseas) year-over-year.

• Basic EPS increased to ¥21.88 from ¥12.27 year-over-year.

Outlook and guidance

• First-half earnings forecast revised upward due to strong Q1 performance; full-year forecast maintained to allow for growth investments and forex trends.

• Q1 revenue and operating profit achieved 26% and 27% of full-year targets, respectively.

• Full-year revenue forecast for fiscal year ending March 31, 2027 is ¥157,000 million (up 6.9% year-over-year), with operating profit forecast at ¥3,400 million (up 3.7%) and profit attributable to owners of parent forecast at ¥2,208 million (down 4.6%).

• Basic EPS forecast: ¥96.37; dividend forecast unchanged at ¥44.00 per share.