Notice Regarding Revision of Consolidated Earnings Guidance for the Fiscal Year Ending May 2026

Overview of Earnings Guidance Revision

Pasona Group Inc. has revised its consolidated earnings guidance for the fiscal year ending May 2026. Net sales are lowered from the previous forecast of 330,000 million yen to 310,000 million yen, and operating income is sharply reduced from 2,500 million yen to 500 million yen. Ordinary income also declines from 2,800 million yen to 1,800 million yen, while net income attributable to owners of parent reverses from a positive 500 million yen forecast to a loss of 1,800 million yen. Net income per share has been revised from a positive 12.81 yen forecast to minus 47.72 yen.

Reasons for the Revision and Future Outlook

While the career solutions segment's reemployment support business remains strong, the recruitment business is expected to fall short of initial targets due to decreased operational efficiency caused by internal system renewal and reduced productivity attributable to personnel changes. The regional revitalization and tourism solutions segment is performing well with increased visitor numbers; however, delays in the launch of new gaming business and new facilities make achieving plan difficult. Additionally, the incurrence of special losses related to Expo exhibition costs has impacted results, leading to an expected shortfall in full-year earnings guidance. Further revisions may occur depending on circumstances.