Loginet Japan Co., Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥1.78B
• Net Income: ¥1.16B
• EPS: ¥259.16

Income Statement

Balance Sheet

Cash Flow Statement

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

For FY2026 Q2 (cumulative) under JGAAP on a consolidated basis, Loginet Japan (9027) reported operating income of ¥1,778 million, down 6.2% YoY, while net income rose 15.7% YoY to ¥1,361 million, indicating supportive non-operating and/or extraordinary items and a normalized tax burden. Ordinary income was ¥1,764 million, slightly below operating income, implying a modest net non-operating expense of roughly ¥14 million, consistent with reported interest expense of ¥26 million and some offsetting non-operating income. Based on net income of ¥1,361 million and income tax expense of ¥654 million, implied pre-tax income is approximately ¥2,015 million and the effective tax rate is around 32.5%. EBITDA is ¥2,687 million (operating income plus D&A of ¥909 million), supporting a strong EBIT interest coverage of 68.4x, reflecting low interest burden. On the balance sheet, total assets are ¥37,551 million and total equity is ¥20,812 million, implying a leverage ratio (assets/equity) of about 1.80x and an equity ratio of roughly 55.4% despite the reported equity ratio field showing 0% (unreported). Liquidity appears tight with a current ratio of 95.1% and quick ratio of 93.2%, and working capital is negative at approximately ¥-565 million. Operating cash flow was ¥1,680 million, exceeding net income (OCF/NI of 1.23x), which points to solid earnings-to-cash conversion in the period. Investing cash flow is unreported (shown as 0), preventing a clean read on free cash flow beyond the provided placeholder; thus, capital intensity and growth reinvestment are unclear this quarter. Financing cash flow was an inflow of ¥782 million, suggesting net borrowing, lease financing, or other financing activities; without detailed breakdown, the composition is uncertain. Revenue, gross profit, and margin fields are unreported (shown as 0), so we cannot assess price/mix, volume trends, or margin structure directly, which is a material limitation for a logistics operator. Nevertheless, the combination of lower operating income and higher net income suggests that non-operating items and extraordinary gains likely supported bottom-line resilience, and tax normalization may have contributed. The balance sheet indicates moderate leverage and good solvency headroom, but near-par current ratio and negative working capital warrant monitoring in a business that can face seasonal and macro demand swings. The OCF outperformance versus net income supports earnings quality for the half; however, the lack of investing cash flow data makes free cash flow sustainability and capex needs opaque. Dividend data are unreported for the period; payout capacity therefore needs to be assessed conservatively via earnings and cash flow rather than declared distributions. Overall, fundamentals suggest healthy solvency, strong interest coverage, and decent cash conversion, offset by soft operating income and tight liquidity, under data constraints. Key data gaps include revenue, gross profit, detailed cash flow breakdowns (capex), and share count/market metrics.

Profitability Analysis

ROE decomposition cannot be completed due to unreported revenue and therefore unreported net profit margin and asset turnover; however, financial leverage is approximately 1.80x (assets ¥37.6bn / equity ¥20.8bn). Net income was ¥1.36bn and ordinary income ¥1.76bn, with operating income at ¥1.78bn, indicating minimal non-operating drag in aggregate. EBITDA of ¥2.69bn implies strong operating cash earnings capacity relative to the small interest burden (interest expense ¥26m), evidenced by 68.4x interest coverage. The YoY decline in operating income by 6.2% suggests some margin compression or volume softness at the operating level, though revenue and gross profit are not disclosed. The improvement in net income (+15.7% YoY) despite lower operating income points to favorable below-the-line effects: a likely positive net extraordinary result and a normalized effective tax rate of ~32.5% (calculated from tax ¥654m and implied pretax ¥2,015m). Margin quality assessment is constrained without gross margin or OPM, but the spread between EBITDA and operating income (D&A of ¥909m) highlights non-trivial asset intensity (fleet, facilities). Operating leverage appears moderate: a small decline in operating income alongside higher net income suggests cost control below the operating line rather than top-line-driven fixed-cost dilution; further analysis awaits revenue disclosure.

Growth Assessment

Top-line metrics (revenue, gross profit) are unreported for FY2026 Q2, limiting visibility on volume and pricing dynamics. Operating income declined 6.2% YoY to ¥1.78bn, signaling some pressure at the core business level. Net income increased 15.7% YoY to ¥1.36bn, likely supported by extraordinary gains and/or lower non-operating costs and tax effects, which are less repeatable than operating improvements. Ordinary income at ¥1.76bn is close to operating income, suggesting non-operating items are relatively small in steady state. The implied effective tax rate of ~32.5% appears within a normal range, not unduly suppressing profit growth for the half. With EBITDA at ¥2.69bn and strong interest coverage, the company retains capacity to reinvest; however, the absence of investing cash flow detail prevents insight into maintenance vs. growth capex and, therefore, medium-term growth sustainability. Outlook hinges on freight demand trends, driver availability and wage inflation, fuel cost pass-through, and subcontracting utilization—none of which are directly inferable without revenue and cost breakdowns. Given negative YoY operating income movement, near-term growth appears tempered, pending a clearer view once sales and segment data are disclosed.

Financial Health

Total assets are ¥37.55bn and total equity is ¥20.81bn, implying an equity ratio near 55.4% and financial leverage of ~1.80x, indicating solid solvency. Total liabilities are ¥15.15bn. The reported debt-to-equity ratio of 0.73x suggests moderate use of interest-bearing debt relative to equity, though the specific debt composition (loans vs. leases) is not provided. Liquidity is tight with a current ratio of 95.1% and quick ratio of 93.2%, and working capital of approximately ¥-0.57bn, which warrants monitoring in a business exposed to demand seasonality and fuel price volatility. Interest expense is low at ¥26m, and interest coverage is robust (68.4x), indicating low short-term refinancing risk. Inventories are minimal at ¥0.22bn, consistent with logistics sector characteristics; receivables and payables dynamics (unreported) likely drive working capital swings. Overall solvency appears strong, while liquidity headroom is thin but manageable if cash generation remains solid.

Cash Flow Quality

Operating cash flow of ¥1.68bn exceeds net income of ¥1.36bn (OCF/NI = 1.23x), indicating good earnings-to-cash conversion in the period. Depreciation and amortization of ¥0.91bn underscore the capital intensity of operations; non-cash charges are a meaningful bridge from earnings to cash. Investing cash flow is unreported (shown as 0), so free cash flow cannot be reliably assessed; the placeholder FCF of 0 should not be interpreted as actual. Financing cash flow was an inflow of ¥0.78bn, implying net borrowing, lease financing, or reduced dividends/treasury actions; specific drivers are not disclosed. Working capital details are limited, but negative period-end working capital and OCF outperformance suggest either stable collection/payable cycles or favorable timing effects; sustainability into the second half is uncertain without receivables/payables turnover data. Overall, cash flow quality is positive for the half, but full-year FCF visibility is limited by missing capex and investing detail.

Dividend Sustainability

Dividend per share and payout ratio are unreported for the period. With EPS at ¥259.16 for the half, internal capacity to fund dividends appears supported by earnings and OCF (¥1.68bn), but true distribution capacity should be assessed against full-year earnings, capex needs, lease/loan amortization, and any policy targets. Without investing cash flow (capex) disclosure, FCF coverage of dividends cannot be determined. Historically in the sector, stable dividends rely on steady OCF and moderate leverage; this company’s strong interest coverage and moderate leverage favor sustainability, while tight liquidity and potential capex for fleet renewal could constrain discretionary payouts. Policy outlook cannot be inferred from the provided data; monitor management guidance and past payout trends once disclosed.

Risk Assessment

Business Risks:

• Freight demand volatility due to macro conditions and industrial production cycles
• Driver shortage and wage inflation impacting cost base and service capacity
• Fuel price volatility and pass-through effectiveness on customer contracts
• Competitive pricing pressure among domestic logistics and 3PL providers
• Regulatory changes in labor/workstyle reforms and safety compliance
• Accident, weather, and natural disaster disruptions (notably regional exposure)
• Customer concentration or contract renewal risk (undisclosed)
• Subcontracting cost variability and capacity availability

Financial Risks:

• Tight liquidity with current ratio below 1.0 and negative working capital
• Potential increase in interest rates raising financing costs (despite low current interest burden)
• Unknown capex requirements for fleet/facility renewal given unreported investing CF
• Refinancing/lease rollover risk if liabilities are concentrated in short-term maturities
• Earnings sensitivity to depreciation and asset utilization in a capital-intensive model

Key Concerns:

• Operating income declined 6.2% YoY while top-line data are absent, obscuring underlying drivers
• Unreported revenue and gross profit prevent assessment of margin structure and pricing power
• Investing cash flow unreported, limiting visibility on free cash flow and reinvestment needs
• Liquidity metrics are near threshold levels (current ratio 95.1%, quick ratio 93.2%)

Investment Implications

Key Takeaways:

• Operating income softened to ¥1.78bn (-6.2% YoY), indicating some operating pressure
• Net income rose to ¥1.36bn (+15.7% YoY), aided by below-the-line items and a normal tax rate (~32.5%)
• Leverage is moderate with an implied equity ratio around 55% and assets/equity of ~1.80x
• Interest burden is minimal (¥26m) with very strong coverage (68.4x)
• Liquidity is tight (current ratio 0.95x; negative working capital of ~¥0.57bn)
• OCF strength (¥1.68bn; OCF/NI 1.23x) supports earnings quality for the half
• Capex/FCF visibility is limited due to unreported investing cash flows
• Dividend capacity and policy cannot be assessed from current disclosures

Metrics to Watch:

• Revenue growth, unit pricing, and fuel surcharge pass-through rates
• Operating margin and EBITDA margin once gross profit is disclosed
• Capex (maintenance vs. growth) and resulting free cash flow
• Working capital turns (DSO/DPO) and cash conversion cycle
• Leverage (net debt/EBITDA) and maturity profile of interest-bearing debt/leases
• Labor cost ratio and subcontracting mix amid driver shortages
• Ordinary vs. extraordinary items to assess repeatability of bottom-line strength

Relative Positioning: Within domestic logistics peers, the company appears moderately leveraged with strong interest coverage and adequate solvency, but currently faces softer operating income and tighter liquidity; incomplete disclosure this quarter limits precise margin and cash generation benchmarking.

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