MIRAIT ONE Corporation FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥258.84B
• Operating Income: ¥7.85B
• Net Income: ¥1.73B
• EPS: ¥51.83

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Mirait One reported FY2026 Q2 consolidated results under JGAAP with steady topline growth and notably stronger profitability. Revenue rose 3.6% year on year to ¥258.8bn, while operating income surged 67.8% to ¥7.85bn, highlighting meaningful operating leverage. Gross profit was ¥32.60bn, implying a gross margin of 12.6%, and operating margin improved to approximately 3.0%. Ordinary income reached ¥8.53bn, exceeding operating income by ¥0.68bn, indicating positive non-operating contributions net of interest expense. Net income increased 226.1% YoY to ¥4.63bn, with EPS of ¥51.83, reflecting both margin expansion and improved recurring profitability. The DuPont profile shows a net margin of 1.79%, asset turnover of 0.521x, and financial leverage of 1.85x, yielding a reported ROE of 1.73%. Balance sheet strength remains a key support: total assets are ¥496.4bn, equity is ¥267.8bn, and the implied equity ratio is about 53.9% despite a reported value of 0.0% (likely undisclosed in XBRL). Liquidity is solid with a current ratio of 199.5%, quick ratio also 199.5% given undisclosed inventories, and working capital of ¥160.2bn. Interest expense is modest at ¥257m, translating to a strong interest coverage of roughly 30.5x based on operating income. The income tax charge was ¥3.53bn; using net plus tax implies an effective tax rate in the low‑40% range, contrasting with the reported 0.0% figure that appears driven by data omissions. Cash flow statements are not disclosed in this dataset (zeros are placeholders), limiting assessment of conversion and free cash flow. Dividend data indicate DPS and payout as 0.00, which likely reflects non-disclosure rather than an explicit zero payout policy at this point in the year. Overall, the half-year print suggests improved execution and cost control, especially given operating income growth far outpacing sales growth. However, the absence of cash flow and share count data constrains conclusions on earnings quality, capital returns, and per-share value accretion beyond the provided EPS. Investors should focus on the durability of gross margin gains, SG&A efficiency, and working capital discipline into 2H seasonally stronger periods typical for construction-related businesses. Non-operating gains supporting ordinary income bear monitoring for sustainability. Finally, tax and extraordinary items appear to have had a material effect; clarifying one-off versus recurring elements will be important for run-rate profitability.

Profitability Analysis

ROE decomposition:

• net_profit_margin: 1.79%
• asset_turnover: 0.521x
• financial_leverage: 1.85x
• calculated_ROE: 1.73%
• commentary: ROE is driven primarily by modest margins and moderate leverage; asset turnover is typical for an engineering/construction integrator. On a half-year basis, ROE may understate full-year run-rate given seasonality. margin_quality:
• gross_margin: 12.6% (gross profit ¥32.60bn on revenue ¥258.84bn)
• operating_margin: 3.0% (operating income ¥7.85bn)
• ordinary_margin: 3.3% (ordinary income ¥8.53bn)
• net_margin: 1.79% (net income ¥4.63bn)
• drivers: Operating income grew 67.8% on 3.6% revenue growth, implying improved project mix, execution, and SG&A efficiencies. Non-operating gains (net +¥0.68bn vs operating) supported ordinary income despite ¥0.26bn interest expense. operating_leverage: High in the period: +3.6% revenue vs +67.8% operating income. The gross-to-operating spread (12.6% to 3.0%) suggests SG&A ratio around 9.6% of sales (SG&A ~¥24.75bn), indicating effective cost control and scale benefits.

Growth Assessment

revenue_sustainability: Revenue grew 3.6% YoY to ¥258.8bn; sustainability will depend on backlog conversion, telecom/ICT spending cycles, and public sector orders. No order/backlog data provided here. profit_quality: Ordinary income exceeded operating income by ¥0.68bn, implying supportive non-operating items (estimated other non-operating gains of ~¥0.94bn offsetting ¥0.26bn interest). Net income growth (+226%) also reflects tax and potential extraordinary effects; recurring run-rate likely lower than headline YoY. outlook: If gross margin discipline and SG&A efficiency persist into 2H, operating leverage can continue. Watch for normalization of non-operating gains and any extraordinary items; seasonal 2H weighting is common in the sector.

Financial Health

liquidity:

• current_ratio: 199.5% (current assets ¥321.19bn / current liabilities ¥160.98bn)
• quick_ratio: 199.5% (inventories undisclosed; treated as not reported)
• working_capital: ¥160.21bn
• commentary: Ample short-term coverage; cash and equivalents are undisclosed in this dataset. solvency:
• total_assets: ¥496.42bn
• total_equity: ¥267.77bn
• total_liabilities: ¥267.86bn
• equity_ratio_implied: 53.9% (vs reported 0.0% due to disclosure gap)
• debt_to_equity: 1.00x (liabilities/equity)
• interest_coverage: 30.5x (operating income / interest expense)
• commentary: Balance sheet strength and low interest burden support resilience; leverage appears moderate with substantial equity buffer. capital_structure: Leverage primarily from operating liabilities inherent to project businesses; no detailed breakdown of interest-bearing debt provided.

Cash Flow Quality

earnings_quality: Cash flow statements are not disclosed here (zeros are placeholders), so OCF/NI and FCF cannot be assessed. The reported OCF/NI ratio of 0.00 should not be interpreted as poor conversion. FCF_analysis: Free cash flow is undisclosed. Given sizable working capital (¥160.21bn), intra-year swings are likely; 2H often releases cash as projects complete. working_capital: High working capital relative to first-half sales (~62% of H1 revenue) is typical for project businesses; monitor receivables, unbilled WIP, and payables timing for cash conversion.

Dividend Sustainability

payout_ratio_assessment: Reported DPS and payout ratio are 0.00, likely reflecting non-disclosure at Q2 rather than an explicit zero distribution. EPS is ¥51.83 for H1. FCF_coverage: Not assessable due to undisclosed OCF/FCF. Historical patterns aside, current dataset does not allow coverage analysis. policy_outlook: With an implied equity ratio ~54% and strong interest coverage, the balance sheet can support dividends; actual policy depends on full-year earnings, cash generation, and capital needs.

Risk Assessment

Business Risks:

• Order timing and backlog conversion risk affecting revenue visibility
• Project execution risk impacting gross margins and contingencies
• Customer concentration in telecom/ICT and public sectors
• Input cost inflation and subcontractor availability
• Seasonality and weather-related delays affecting 2H delivery

Financial Risks:

• Working capital build and cash conversion timing
• Potential reliance on non-operating gains to sustain ordinary income
• Tax and extraordinary items volatility affecting bottom line
• Counterparty credit risk in receivables and unbilled balances

Key Concerns:

• Lack of disclosed cash flow data limits assessment of earnings quality
• Effective tax rate appears materially higher than the reported 0.0% metric in the dataset
• Ordinary income uplift from non-operating items may not be recurring

Investment Implications

Key Takeaways:

• Solid topline growth (+3.6% YoY) with strong operating leverage (+67.8% OI)
• Margins improved to 12.6% gross and ~3.0% operating; SG&A discipline evident
• Ordinary income benefited from non-operating gains net of interest
• Balance sheet robust with implied ~54% equity ratio and 30.5x interest coverage
• Cash flow, cash balance, inventories, and dividends are not disclosed in this dataset, limiting quality and payout analyses

Metrics to Watch:

• Order intake and backlog
• Gross margin trend and project mix
• SG&A ratio to sales
• Operating cash flow and receivables/WIP days
• Non-operating income components and extraordinary items
• Effective tax rate normalization into FY-end

Relative Positioning: Versus domestic telecom/ICT engineering peers, Mirait One shows improving profitability and strong balance sheet defensiveness; absolute margins remain modest but trending positively, with execution and cash conversion the key differentiators into 2H.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis