| Metric | Current Period | Same Period of Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥14979.9B | ¥12778.2B | +17.2% |
| Operating Income | ¥1584.8B | ¥840.3B | +88.6% |
| Profit Before Tax | ¥1594.9B | ¥828.6B | +92.5% |
| Net Income | ¥1204.6B | ¥591.0B | +103.8% |
| ROE | 9.3% | 4.9% | - |
The earnings results showed substantial revenue growth, with earnings growth accelerating further, driven by increases in both sales volume and prices in the core Landmobility Business, as well as operating leverage resulting from improved fixed-cost absorption. Revenue was ¥14,979.9B (+17.2% YoY), Operating Income was ¥1,584.8B (+88.6% YoY; operating margin of 10.6%, improving by +4.0pt from 6.6% in the previous year), Profit Before Tax was ¥1,594.9B (+92.5% YoY), and Net Income attributable to owners of the parent was ¥1,139.0B (+114.7% YoY). The decline in the effective tax rate from 28.7% to 24.5% was also a factor contributing to Net Income growth exceeding Profit Before Tax growth.
【Revenue】Revenue was ¥14,979.9B, up +17.2% YoY. The core Landmobility Business, which accounted for 65.7% of the composition, led company-wide growth with revenue growth of +21.8%. Marine Products (20.1% composition, +7.4%), Robotics (+24.5%), and Financial Services (+18.1%) also contributed to revenue growth, while Outdoor Land Vehicles posted only modest revenue growth of +3.3%.
【Profit and Loss】Operating Income was ¥1,584.8B, up +88.6% YoY, and the operating margin improved by +4.0pt to 10.6% (6.6% in the previous year). The primary driver of earnings growth was the +89.8% increase in Operating Income in Landmobility (11.4% margin), confirming operating leverage whereby profit growth exceeded revenue growth. Meanwhile, Outdoor Land Vehicles recorded an Operating Loss of ¥119.8B (margin of -14.9%), with losses continuing and diluting the company-wide margin. Profit Before Tax was ¥1,594.9B (+92.5%), while the decline in the effective tax rate (28.7% → 24.5%) resulted in Net Income attributable to owners of the parent of ¥1,139.0B (+114.7%), exceeding Profit Before Tax growth. Both revenue and earnings increased.
By segment, the core Landmobility Business led the company in both revenue and profit, while most other segments also supported overall performance through revenue and earnings growth.
Operating Income in Robotics expanded sharply by +337.8% YoY, indicating progress toward monetization despite the segment’s still-small scale. Outdoor Land Vehicles was the only loss-making segment, exerting a negative impact equivalent to approximately 7.6% of company-wide Operating Income of ¥1,584.8B. Improving the profitability of this segment could provide additional upside to the company-wide margin.
【Profitability】The operating margin was 10.6% (6.6% in the previous year), the Net Income margin was 7.6% (4.2% in the previous year, +3.4pt), and ROE was 9.3%. 【Cash Flow Quality】Operating Cash Flow (OCF) was ¥1,533.9B, equivalent to 1.35 times Net Income attributable to owners of the parent of ¥1,139.0B, while Free Cash Flow was positive at ¥1,025.7B. 【Investment Efficiency】The total asset turnover ratio, calculated as Revenue/Total Assets, was 49.6%, while interest coverage, calculated as EBIT (¥1,584.8B) divided by financial expenses (¥65.5B), was a robust approximately 24.2 times. 【Financial Soundness】The Equity Ratio improved to 41.4% (39.0% in the previous year). Against total interest-bearing debt of ¥10,296.7B, net interest-bearing debt, after deducting cash and cash equivalents of ¥4,014.6B, was ¥6,282.1B, resulting in a Net D/E ratio of 48.6%.
Operating Cash Flow was ¥1,533.9B, equivalent to 1.35 times Net Income attributable to owners of the parent of ¥1,139.0B, indicating that earnings were steadily converted into cash. In terms of working capital, a decrease in inventories provided a cash inflow of ¥667.6B, while an increase in accounts receivable resulted in a cash outflow of ¥575.8B, partially offsetting each other. Investing Cash Flow represented an outflow of ¥508.2B, primarily due to capital expenditures of ¥584.4B, resulting in positive Free Cash Flow of ¥1,025.7B. Financing Cash Flow was an outflow of ¥1,108.0B, mainly due to the reduction of short-term borrowings (-¥1,158.7B) and repayment of long-term borrowings (-¥813.5B), but funding requirements, including dividend payments of ¥97.0B, were covered within the range of Free Cash Flow.
Against Operating Income of ¥1,584.8B, Profit Before Tax was ¥1,594.9B. After taking into account financial income and expenses (financial income of ¥75.6B - financial expenses of ¥65.5B), other income and expenses (other income of ¥82.6B - other expenses of ¥33.4B), and equity-method gains of ¥63.2B, the uplift from non-operating factors was limited to +¥10.1B, indicating that the majority of profit was generated by the core business. The effective tax rate was 24.5%, down from 28.7% in the previous year, which was one factor behind Net Income growth of +114.7% exceeding Profit Before Tax growth of +92.5%. Total comprehensive income was ¥1,527.9B (¥1,454.7B attributable to owners of the parent), exceeding Net Income of ¥1,139.0B by ¥315.7B. This difference was primarily attributable to other comprehensive income, including a foreign currency translation gain of ¥274.8B; caution is warranted because this includes unrealized valuation gains. The fact that Operating Cash Flow reached 1.35 times Net Income indicates strong cash backing for earnings.
Progress against the Full-Year forecast was 51.7% for Revenue (¥14,979.9B/¥29,000.0B), 61.0% for Operating Income (¥1,584.8B/¥2,600.0B), and 67.0% for Net Income (¥1,139.0B/¥1,700.0B). Profit progress significantly exceeded the standard first-half progress rate of 50%, and the earnings forecast was revised during the current quarter. The dividend forecast remains unchanged at ¥50.
The interim dividend was ¥25 per share, unchanged from the interim dividend of ¥25 in the same period of the previous year. The Full-Year forecast dividend is ¥50, resulting in a Payout Ratio of 28.5% against forecast EPS of ¥175.16 (¥50/¥175.16). Dividend payments (consolidated) of ¥97.0B are sufficiently covered by Operating Cash Flow of ¥1,533.9B and Free Cash Flow of ¥1,025.7B, and the sustainability of the dividend is maintained given the company’s cash-generating capacity.
Product mix and demand cycle risk: Outdoor Land Vehicles generated Revenue of ¥802.9B (+3.3%) but recorded an Operating Loss of ¥119.8B (margin of -14.9%), representing a negative factor equivalent to approximately 7.6% of company-wide Operating Income of ¥1,584.8B.
Working capital (accounts receivable) risk: Notes and accounts receivable amounted to ¥2,432.6B, increasing +33.9% from ¥1,817.2B in the previous year, a rate exceeding Revenue growth of +17.2%. This level warrants monitoring of collection trends.
Foreign exchange risk: A foreign currency translation gain of ¥274.8B was recognized in other comprehensive income and contributed to the increase in net assets. However, if the yen exchange rate reverses, this effect could become a headwind.
Profitability and Return
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 10.6% | 9.7% (5.4%–23.7%) | +0.9pt |
| Net Income Margin | 8.0% | 5.4% (1.3%–20.1%) | +2.6pt |
Both the operating margin and Net Income margin (Note: based on consolidated Net Income) exceed the industry median, indicating that profitability is relatively high within the industry.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 17.2% | 10.6% (-3.4%–25.4%) | +6.6pt |
The Revenue growth rate significantly exceeds the industry median but has not reached the upper bound of the IQR (25.4%); compared with the industry’s high-growth companies, the company is positioned around the middle.
※Source: Company aggregation
The operating margin improved by +4.0pt from 6.6% in the previous year to 10.6%, confirming operating leverage as Operating Income (+88.6%) grew at a faster pace than the Revenue growth rate (+17.2%).
Full-Year progress was ahead on the profit side, with Revenue at 51.7% versus Operating Income at 61.0% and Net Income at 67.0%; the earnings forecast was revised as of the first half.
Outdoor Land Vehicles recorded an Operating Loss of ¥119.8B and was the only loss-making segment. The extent of profitability improvement in this segment will be an indicator of the potential for further improvement in the company-wide margin.
This is a mechanically calculated reference range based solely on publicly disclosed data using a residual income model (Ohlson type with an explicit five-year fade period). It is not a forecast of the market share price or a recommendation to take any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear (bearish) | ¥1,460 |
| base (base case) | ¥1,516 |
| bull (bullish) | ¥1,571 |
| Calculation Assumption | Value |
|---|---|
| Book Value Per Share (BPS) | ¥1,289 |
| Adjusted Forecast EPS | ¥193.2 |
| Cost of Equity r | 9.15% (10-year government bond 2.65% + equity risk premium 6.00% + size premium 0.50%) |
| Residual Income Persistence Coefficient ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 28.5% |
| Forecast EPS Reliability Adjustment | ×1.103 (based on the industry’s historical guidance achievement rate) |
| Implied PBR / PER |
Sensitivity: ¥1,473–¥1,562 at Cost of Equity ±1%, and ¥1,511–¥1,525 at ω±0.1.
Notes:
(Calculation model: Residual income model / Interest rate reference month: 2026-06 / This value does not predict or guarantee the future share price)
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not recommend investment in any specific security. The industry benchmarks are reference information aggregated by the company based on publicly available earnings data. Investment decisions should be made at your own responsibility, and after consulting a professional where necessary.
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| 1.18x / 7.9x |
These are mechanically computed values based on a residual income model. They are not a forecast of market prices or a recommendation of any investment action, and do not predict or guarantee future share prices. Historical values are computed retrospectively using current guidance-achievement statistics.