Pasona Swings to Q1 Operating Profit of ¥93 Million as Gross Profit Rises 10% and Staffing Margins Improve

Back in the black

Pasona Group Inc. (TSE: 2168) reported consolidated results for the first quarter of FY5/2027, June 1 to August 31, 2026, on October 15, 2026 under Japanese GAAP. Net sales rose 3.1% to ¥79,327 million and gross profit 9.7% to ¥18,738 million, while selling, general and administrative expenses grew 5.6% to ¥18,645 million, partly on opening costs for new facilities and higher IT spending. Operating profit was ¥93 million against a ¥568 million loss and ordinary profit ¥94 million against a ¥64 million loss. With a gain on the sale of shareholdings, and the year-earlier quarter carrying special losses tied to its Osaka-Kansai Expo pavilion, net profit attributable to owners of the parent reached ¥496 million, or ¥13.29 per share, against a ¥606 million loss.

Staffing and outsourcing drive the gain

The combined BPO and expert (temporary staffing) segment grew revenue 2.3% to ¥69,325 million and operating profit 30.7% to ¥3,355 million, as gross margins improved in both businesses. Outsourcing revenue dipped as a large public-sector contract passed its peak, but new corporate demand held firm and the ProShare service, which matches professionals with corporate projects, kept expanding; in September Pasona acquired Enfactory, which has around 30,000 professionals. Staffing revenue rose on more registrations, higher billing rates and one more working day. Career Solutions, covering placement and outplacement, saw revenue slip 1.4% to ¥3,299 million and profit fall 15.1% to ¥734 million after a weak previous quarter for placements and system replacement costs.

Global Solutions grew revenue 11.6% to ¥3,099 million and lifted profit to ¥142 million from ¥26 million on gains in the United States, Taiwan, India and Singapore. Life Solutions, which runs childcare and after-school clubs, grew revenue 15.7% to ¥2,579 million and profit to ¥115 million. Regional Revitalisation and Tourism, which runs the Nijigen no Mori theme park on Awaji Island, grew revenue 8.1% to ¥2,254 million, but its loss widened to ¥783 million from ¥336 million on start-up costs and depreciation for a long-stay retreat that opened in June.

Balance sheet

Total assets fell to ¥228,667 million from ¥235,482 million at the end of May, mainly as cash and securities fell on capital spending, dividend and tax payments and a redemption. Net assets were ¥130,101 million after ¥2,870 million in dividends, and the equity ratio rose to 54.4% from 53.9%. Pasona noted that subsidiary Pasona Inc. is under investigation by the Japan Fair Trade Commission over fee-setting in temporary staffing, and that it is cooperating fully.

Outlook and dividend

Pasona kept its FY5/2027 forecast, announced on July 15, of net sales of ¥325,000 million (+5.3%), operating profit of ¥1,500 million, ordinary profit of ¥1,500 million and a net loss attributable to owners of the parent of ¥1,000 million. It plans an unchanged year-end dividend of ¥75, made up of a ¥15 ordinary dividend and a ¥60 special dividend.

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.