PERSOL HOLDINGS CO.,LTD.

Business Details

The segment's core business is domestic staffing, primarily covering clerical roles across a wide range of industries, and it also operates a placement (recruiting) business focused mainly on clerical positions. Under permission from the Minister of Health, Labour and Welfare, the company recruits and registers temporary staff and dispatches them to client companies as a worker dispatching (staffing) business. Under the Medium-Term Management Plan through FY2028, this segment is positioned within the "Foundation" domain, with a direction of maintaining stable revenue growth while strengthening the earnings base through productivity improvement. Under the theme of enhancing profitability and expanding share through the combination of people, digital, and AI, the segment is also promoting expansion into new areas such as construction and manual labor fields.

Recent Overview

Both the number of staff placed and billing rates increased, and growth in the placement business also contributed, achieving higher revenue and profit.

In FY2026 (ending March 2026), despite a calendar factor of one fewer business day than the prior year, revenue grew steadily to ¥608,086 million (up 3.5% year on year) due to a 1.8% year-on-year increase in the number of staff placed and a 2.2% increase in billing rates. Productivity improvements and growth in the high-margin placement business contributed, with adjusted EBITDA reaching ¥34,804 million (up 12.3% year on year) and operating profit reaching ¥30,416 million (up 13.0% year on year), with profit growth substantially outpacing revenue growth. Note that, effective April 1, 2025, part of the Staffing SBU's business was transferred to "Other," and prior-year comparisons are based on figures prepared using the revised segment classification.

Key Products

Growth Drivers

• Continued increase in the number of staff placed (up 1.8% year on year in FY2026 ending March 2026)
• Rising billing rates (up 2.2% year on year in FY2026 ending March 2026)
• Improved revenue mix from growth in the high-margin placement business
• Improved profit margins from productivity gains (profit growth outpacing revenue growth)
• Persistent labor shortages in Japan and robust hiring appetite among client companies
• Improved staff LTV through optimal matching using people and digital technology (a measure under the Medium-Term Management Plan through FY2028)
• Share expansion through development of new areas such as construction and manual labor fields

Risks

• Impact on revenue from calendar factors such as fewer working days (one fewer business day in FY2026 ending March 2026)
• Risk of rapid contraction in staffing demand during economic downturns (a business model highly sensitive to economic cycles)
• Increased staffing costs due to rising minimum wages and labor costs, and delays in passing these on to billing rates
• Changes in business scale due to the segment reorganization in April 2025 (transfer of some businesses to "Other")
• Structural impact on the traditional staffing business model from technological advances (AI, automation)
• Positioned within the "Foundation" domain under the Medium-Term Management Plan through FY2028, with relatively lower priority for growth investment compared to growth areas (Career and Technology)