ENVALITH
株式会社パソナグループ logo

Pasona Group Inc.

2168・Prime Market・Services

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株式会社パソナグループ logo
Pasona Group Inc.2168

Business

Pasona Group Inc. was founded in 1976 and, under its holding company structure, comprises 62 consolidated subsidiaries and 5 equity-method affiliates, operating as a comprehensive human resources services company. Domestically, it centers on four core segments: BPO Solutions (outsourcing/contracting), Expert Solutions (staffing), Career Solutions (recruitment placement and re-employment support), and Life Solutions (childcare support, elderly care, etc.), while also expanding Global Solutions across 18 or more countries overseas. In addition, the company operates regional revitalization and tourism solutions based on Awaji Island. In FY2024 (ended May 2024), it sold its shares in Benefit One Inc., restructuring its business portfolio. Consolidated net sales for FY2025 (ended May 2025) were ¥309,240 million. Major clients span a wide range, including major domestic and overseas corporations, local governments, and individual job seekers.

Business Model

The core of revenue is built on two pillars: BPO solutions (net sales of ¥137,236 million) and staffing (net sales of ¥134,807 million). In BPO, the company receives outsourced operations from client companies and earns continuous service revenue by having its own staff process them. The staffing business is a model in which the company enters into employment contracts with temporary staff and receives dispatch fees. Recruitment placement and career support services operate on a success-fee basis and boast a high profit margin (operating margin of 34.8%). The Overseas, Life, and Regional Revitalization segments each complement this structure by supplementing diverse revenue sources.

Company Strengths

In FY2025 (ended May 2025), the Career Solutions segment (recruitment placement and re-employment support) achieved net sales of ¥14,507 million, operating profit of ¥5,048 million, and an operating profit margin of 34.8%. Net sales increased 11.1% and operating profit increased 24.9% year on year, making it the only segment within HR Solutions to achieve both higher sales and higher profit. This was driven by increased focus on the high-career segment and expansion of the re-employment support market.

Combined net sales of the HR Solutions segment (BPO Solutions and staffing) totaled ¥272,044 million in FY2025 (ended May 2025), accounting for approximately 88% of the group's total net sales. The company offers high-value-added services such as X-TECH BPO (cloud, low-code, and no-code implementation) and AIO (AI BPO), and BPO gross margin improved from the previous fiscal year. The company maintains Japan's largest staffing service platform, covering a wide range of industries and job types.

As of the end of FY2025 (ended May 2025), the equity ratio was 50.9% (improved from 49.3% in the previous fiscal year), with net assets of ¥141,134 million. The financial base was significantly strengthened by the gain on sale of Benefit One shares in FY2024 (ended May 2024). Excluding deposits received related to outsourced projects, the effective equity ratio reached 58.7%, and scheduled repayments of long-term borrowings progressed steadily (repayments of ¥9,099 million during the fiscal year).

ENVALITH's Perspective

The operating loss for FY2026 (ending May 2026) was ¥1,149 million, an improvement of ¥88 million from the previous period (¥1,237 million), and ordinary income turned positive at ¥138 million. It should be noted that temporary non-operating income items—sponsorship revenue of ¥542 million and merchandise sales revenue of ¥540 million related to the Osaka-Kansai Expo—contributed to the ordinary profit turnaround. On the other hand, the improvement in gross profit margin (gross profit +¥2,319 million) indicates a structural improvement in profitability. Meanwhile, companywide costs (elimination or corporate operating loss of ¥14,636 million) expanded year-on-year due to a revision of IT infrastructure usage fees, and substantial further reductions remain necessary to achieve the VISION 2030 target of keeping the companywide cost ratio at 3.5% or below.

In the BPO Solutions segment, revenue declined for the second consecutive period to ¥132,928 million (down 3.1% year-on-year) due to a peak-out in large-scale contracted projects in the public sector. The Career Solutions segment also saw a significant profit decline, with revenue of ¥14,033 million (down 3.3% year-on-year) and operating profit of ¥4,244 million (down 15.9% year-on-year), owing to reduced operational efficiency stemming from an internal system replacement and personnel turnover. The forecast for FY2027 (ending May 2027) calls for a return to revenue and profit growth in Career Solutions, but uncertainty remains regarding achievement of this plan, as the external environment in the recruitment market continues to be affected by hiring restraint at some companies and job seekers' cautious attitude toward job changes.

Segment assets in Regional Revitalization and Tourism Solutions increased significantly to ¥32,174 million (from ¥21,556 million in the previous period), and construction in progress ballooned to ¥37,217 million (from ¥22,103 million in the previous period). Initial opening costs for "THE PASONA natureverse retreat," a long-stay preventive-care ("mibyo") retreat facility set to open in June 2026, are expected to continue into FY2027 (ending May 2027), and the segment's operating loss is projected to remain flat at ¥1,500 million (versus ¥1,491 million in the previous period). Fixed asset investment is expanding without a clear outlook for investment recovery, and the deterioration in the cash flow to interest-bearing debt ratio to 13.6 years (from 7.7 years in the previous period) warrants close attention. In addition, the Japan Fair Trade Commission's investigation into the labor dispatch fee-setting practices of subsidiary Pasona is ongoing and continues to require monitoring as a reputational risk.

Growth Strategy

PASONA GROUP VISION 2030: Aiming for revenue of ¥400.0 billion in FY2030 (ending May 2030) through profit structure reform and new business creation

The company aims to move away from dependence on large public-sector projects and improve gross margin through continued expansion of ProShare, the launch of new services such as Wellness Cloud, and the establishment of a specialized subsidiary for DX support. In FY2026 (ending May 2026), the BPO gross profit margin improved by 1.4 points year on year to 22.7%.

The company achieved a double-digit year-on-year increase in new temporary staffing registrations through the use of AI tools. In FY2027 (ending May 2027), it aims to expand the number of temporary staff working by accelerating the speed from registration to job placement. It will also continue to raise average revenue per placement through revisions to staffing fee rates.

The company is pursuing improved operational efficiency following the completion of its internal system replacement, along with a rebuilding of sales capability under a new organizational structure. Through strategic focus on high-career and female management-track candidates, as well as continued structural-reform-driven demand for reemployment support, the company plans to achieve growth in both revenue and profit in FY2027 (ending May 2027).

The company is driving inbound tourist acquisition through popular IP attractions at Nijigen no Mori (such as NARUTO & BORUTO Shinobizato), and is pursuing new customer acquisition for its Well-being business through "THE PASONA natureverse retreat," a long-stay preventive-care (mibyo) retreat facility opening in June 2026. In FY2026 (ending May 2026), the segment achieved revenue of ¥8,296 million (up 17.1% year on year).

In FY2026 (ending May 2026), each administrative department identified cost issues and selected items for review. In FY2027 (ending May 2027), specific reduction targets will be set for individual items, with thorough cost control implemented. The company aims to achieve a company-wide cost-to-sales ratio of 3.5% or below by FY2030 (ending May 2030).

In addition to multi-regional expansion covering Taiwan semiconductors, U.S. BPO, and Southeast Asian staffing, the company began the global rollout of Omnia LINK through the acquisition of Malaysia's Radiant Communication Sdn. Bhd. as a subsidiary by BeWith Co., Ltd. (May 2026, acquisition cost of ¥1,373 million). In FY2027 (ending May 2027), the segment plans revenue of ¥13,000 million and operating profit of ¥700 million (up 162.3% year on year).

Last updated: July 17, 2026