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Introduction & Market Context
Persol Holdings Co Ltd (TYO:2181) reported strong financial results for the first half of fiscal year 2025, presenting its consolidated financial performance on November 11, 2025. The Japanese HR services company saw its stock rise to 285.5 yen following the announcement, up 0.84% and approaching its 52-week high of 305.4 yen, reflecting positive investor sentiment toward the company’s performance and strategic direction.
The results come amid Persol’s ongoing transformation into a technology-driven HR service company, highlighted by its recent acquisition of Gojob, an AI-driven staffing platform. This strategic move aligns with the company’s focus on enhancing its technological capabilities while maintaining strong financial performance across its diverse business segments.
Executive Summary
Persol Holdings reported record highs in both revenue and profits for the first half of FY2025, with consolidated revenue reaching 752.7 billion yen, a 4.9% increase year-over-year. The company’s operating profit grew by 14.0% to 36.6 billion yen, while adjusted EBITDA rose 3.7% to 44.3 billion yen. These results position the company well to achieve its full-year targets despite anticipated temporary expenses related to post-merger integration (PMI) in the second half of the fiscal year.
As shown in the following comprehensive financial overview, the company is making steady progress toward its full-year forecasts:
Quarterly Performance Highlights
The second quarter of FY2025 saw Persol achieve revenue of 379.0 billion yen, contributing to the strong first-half performance. The company recognized approximately 2.7 billion yen in gains from the sale of a certain business in Q2, which was included in operating profit but excluded from adjusted EBITDA calculations.
Performance varied across Persol’s Strategic Business Units (SBUs), with the Career SBU being a standout performer. The segment exceeded forecasts with an adjusted EBITDA achievement rate of 112.7%, driven by consultant productivity improvements. Meanwhile, the Technology SBU faced challenges with an 80.0% achievement rate against forecasts due to delays in intra-group projects, though these issues were resolved within the first half.
The following chart illustrates each SBU’s performance against forecasts:
A closer examination of adjusted EBITDA reveals that while gross profit increased steadily by 8.9 billion yen year-over-year, this was partially offset by a 7.3 billion yen increase in SG&A expenses. Exchange rate fluctuations had a negative impact of 1.5 billion yen on gross profit, particularly affecting the Asia Pacific segment:
Detailed Financial Analysis
The Staffing SBU, Persol’s largest segment, delivered stable growth with a 3.7% increase in revenue to 303.4 billion yen and a 7.4% rise in adjusted EBITDA to 18.2 billion yen. This performance was driven by a 2.2% increase in the number of active staff and a 2.1% increase in charge price:
The BPO (Business Process Outsourcing) SBU showed remarkable growth with revenue increasing 27.8% year-over-year to 69.7 billion yen. This growth was partly organic (+8.3%) and partly due to the February 2025 acquisition of PERSOL COMMUNICATION SERVICES LIMITED (formerly Fujitsu Communication Services Limited), which contributed 11.6 billion yen to revenue:
The Career SBU continued its strong performance with revenue growing 6.8% to 77.8 billion yen and adjusted EBITDA increasing 18.7% to 19.9 billion yen. This segment maintained the highest profit margin among all SBUs at 25.6%, driven by revenue growth and productivity improvements:
The Technology SBU, despite facing temporary challenges, achieved 10.2% revenue growth to 60.3 billion yen, though adjusted EBITDA declined by 3.6%. The segment was impacted by delays in certain intra-group projects, which reduced profit by approximately 0.5 billion yen in the first half:
Strategic Initiatives
Persol Holdings is actively pursuing its transformation into a technology-driven HR service company. The acquisition of Gojob, an AI-driven staffing platform, represents a significant step in this direction. As CEO Wada emphasized in the earnings call, "We believe that the Gojob technological capabilities, growth potential, and scalability are particularly attractive."
The company is also focusing on refining business models across segments to enhance profitability while promoting disciplined growth investment with an emphasis on capital efficiency. This balanced approach aims to maintain strong shareholder returns while investing in future growth opportunities.
The relationship between adjusted EBITDA and operating profit demonstrates how the company manages various financial components to drive sustainable growth:
Forward-Looking Statements
Looking ahead, Persol Holdings maintains its full-year forecasts with revenue expected to reach 1,540 billion yen (+6.1% YoY) and adjusted EBITDA projected at 86.5 billion yen (+10.4% YoY). While the company anticipates increased expenses related to PMI activities in the second half, management expects the strong first-half performance to absorb these costs.
The following chart illustrates the company’s quarterly performance trend and full-year outlook:
Beyond FY2025, Persol aims to achieve adjusted EBITDA growth of 10% in the next fiscal year and beyond. The company plans to accomplish this by enhancing the profitability of each business segment, with specific targets of 6% for the Staffing SBU, 8% for the BPO SBU, and 10% for the Technology SBU.
CEO Wada expressed confidence in the company’s growth trajectory, stating, "We want to achieve solid growth in the next fiscal year onwards." This optimism is tempered by awareness of potential challenges, including forex fluctuations, market saturation in temporary staffing, and economic uncertainties in the Asia-Pacific region.
As Persol continues its technology-driven transformation, investors will be watching closely to see if the company can maintain its strong financial performance while successfully integrating new acquisitions and technological capabilities into its business model.
Full presentation:
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