Pasona Full-Year Loss Narrows to ¥3.4 Billion as Ordinary Profit Turns Positive on ¥308 Billion Revenue

Pasona Group Inc. (TSE: 2168) reported consolidated results for the fiscal year ended May 2026 under Japanese GAAP. Revenue edged down 0.2% to ¥308,496 million, the operating loss narrowed to ¥1,149 million (from a ¥1,237 million loss), and ordinary profit turned positive at ¥138 million (from a ¥460 million loss). The net loss attributable to owners of the parent shrank to ¥3,388 million from ¥8,658 million a year earlier, an improvement of ¥5,269 million. The loss per share was ¥90.07.

BPO peak-out offset by lifestyle and tourism growth

Pasona, one of Japan's largest human-resources services groups, said revenue slipped as a large public-sector BPO contract passed its peak and as its recruitment business saw lower efficiency during an internal-systems overhaul. Those headwinds were offset by strong growth in its Life Solution business — childcare and household-support services — and by its regional-revitalisation and tourism arm, led by the "Nijigen no Mori" anime theme park on Awaji Island. HR Solution, the core segment, generated revenue of ¥283,241 million.

Margins improve despite cost pressure

Gross profit rose 3.4% to ¥70,278 million and the gross margin improved as the group pursued higher-value BPO services. Selling, general and administrative expenses rose on higher retirement-benefit and IT costs, but the operating loss still narrowed. Non-operating income increased on sponsorship and merchandise revenue tied to the group's pavilion at the Osaka-Kansai Expo, helping lift ordinary profit into positive territory.

Return to operating profit guided for FY27

For the year to May 2027, Pasona guides revenue of ¥325,000 million (+5.3%), operating profit of ¥1,500 million and ordinary profit of ¥1,500 million — a return to profit at both lines — though it still projects a net loss of ¥1,000 million (EPS of −¥26.58). The company also disclosed that it is subject to an investigation by the Japan Fair Trade Commission.

Balance sheet and dividend

Total assets stood at ¥235,482 million and net assets at ¥132,929 million, for an equity ratio of 53.9%. The annual dividend was held at ¥75.00 per share (including a ¥60.00 special dividend), and the same ¥75.00 is guided for FY27.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.