| Indicator | Current Period | Prior Period | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥1247.4B | ¥1210.2B | +3.1% |
| Operating Income / Operating Profit | ¥125.7B | ¥129.2B | -2.7% |
| Ordinary Income | ¥132.3B | ¥131.4B | +0.7% |
| Net Income / Net Profit | ¥76.7B | ¥78.8B | -2.6% |
| ROE | 7.7% | 8.2% | - |
For the full year ended March 2026, revenue was ¥1,247.4B (YoY +¥37.2B, +3.1%), Operating Income was ¥125.7B (YoY -¥3.5B, -2.7%), Ordinary Income was ¥132.3B (YoY +¥0.9B, +0.7%), and Net Income was ¥76.7B (YoY -¥2.1B, -2.6%). While top-line increased, operating-stage profitability declined and bottom-line fell below the prior year. Revenue was supported by a solid performance in the core Moving Business and high growth rates in non-core areas — Electrical Works, Clean, and Reuse. The operating margin contracted to 10.1% (down 0.6pt YoY), primarily due to a 0.7pt decline in gross margin to 37.7% (prior 38.4%), as increases in personnel costs, fuel costs, and subcontracting unit prices were not fully passed through to prices. At the ordinary income level, non-operating income (interest and dividends received, etc.) increased 2.3x YoY, partially offsetting the operating decline. The decrease in Net Income was influenced by the operating-stage loss and an effective tax rate of 34.5%.
【Revenue】 Revenue of ¥1,247.4B (+3.1%) comprised the Moving Business ¥1,053.6B (+2.0%), representing 84.4% of total revenue, and three ancillary service businesses: Electrical Works ¥90.5B (+8.7%), Clean ¥59.0B (+5.2%), and Reuse ¥78.6B (+14.2%), which showed near-double-digit growth. The Moving Business expanded steadily due to absorption of peak-season demand and continued smoothing measures; Electrical Works benefited from development of new customer segments; Clean grew through expansion of services for the elderly; Reuse was supported by increased demand for purchasing unwanted items. Domestic sales accounted for over 90% of consolidated revenue; overseas presence remained limited. On a consolidated basis after intersegment eliminations, the core Moving Business maintained a revenue uptrend while non-core areas clearly drove overall growth.
【Profitability】 Gross profit was ¥470.8B, with a gross margin of 37.7% (prior 38.4%, -0.7pt). Drivers included higher fuel costs (continued elevated diesel prices), increased subcontracting unit prices to partner companies, and rising personnel costs (base pay and raises); while some price pass-through occurred, it was insufficient to fully absorb cost increases. Selling, general and administrative expenses were ¥345.1B (prior ¥335.6B, +2.8%), increasing slightly below the 3.1% sales growth rate, leaving the SG&A ratio steady at 27.7% (YoY +0.0pt). As a result, Operating Income was ¥125.7B (-2.7%) and the operating margin fell to 10.1% (prior 10.7%, -0.6pt). Ordinary Income was ¥132.3B (+0.7%), supported by an increase in non-operating income to ¥7.7B (prior ¥3.4B). The breakdown includes doubled interest and dividend income ¥1.4B (prior ¥0.7B) and other non-operating income ¥2.1B. Non-operating expenses were modest at ¥1.1B, including interest paid ¥0.3B. Extraordinary gains were ¥0.3B (gain on sale of fixed assets), and extraordinary losses were ¥0.5B (including impairment loss ¥0.04B), netting near neutral. Income before income taxes was ¥132.1B, with income taxes of ¥45.5B (effective tax rate 34.5%), resulting in Net Income ¥76.7B (-2.6%). In summary: revenue up, but operating profit down due to lower gross margin; Ordinary Income slightly up from higher non-operating income; Net Income slightly down due to tax burden.
The Moving Business recorded Revenue ¥1,053.6B (+2.0%) and Segment Profit ¥114.4B (-0.3%), maintaining a high margin of 10.8% with a slight YoY decline. Electrical Works posted Revenue ¥90.5B (+8.7%) and Profit ¥6.4B (-3.3%); despite revenue growth, material and subcontracting cost increases compressed margins from 12.8%. Clean Services had Revenue ¥59.0B (+5.2%) and Profit ¥4.4B (-5.6%), with rising personnel costs and variability in utilization rates pressuring the margin to 7.4%. Reuse recorded Revenue ¥78.6B (+14.2%) and Profit ¥2.3B (+152.2%), a substantial profit increase driven by expanded product categories and improved purchase prices, lifting margin rapidly to 3.0%. Other (real estate leasing, etc.) had Revenue ¥9.7B (+16.9%) and Profit ¥5.9B (+2.4%). On a company-wide basis, the Moving Business still generates the bulk of profits, while the Reuse business’s increased contribution is diversifying the portfolio.
【Profitability】Operating margin 10.1% (prior 10.7%, -0.6pt), Net Profit Margin 6.2% (prior 6.5%, -0.4pt), both contracting YoY. ROE was 7.7%, below the company’s historical performance; DuPont decomposition: Net Profit Margin 6.2% × Total Asset Turnover 0.966 × Financial Leverage 1.30 = ROE. The decline in Net Profit Margin was the main driver, influenced by gross margin contraction and an effective tax rate of 34.5%. 【Cash Quality】Operating Cash Flow (OCF) was ¥93.0B, 1.21x Net Income ¥76.7B, indicating generally good cash conversion. The OCF/EBITDA ratio was 0.64x (EBITDA = Operating Income ¥125.7B + Depreciation ¥18.9B = ¥144.6B), somewhat low, pressured by increased corporate tax payments ¥49.1B and working capital movements (inventory -¥2.4B, accounts receivable -¥0.4B). The accrual ratio was -0.5%, low, indicating high quality of accounting earnings. 【Investment Efficiency】Total Asset Turnover 0.966x/year and Tangible Fixed Asset Turnover 1.70x/year indicate good asset efficiency. Capital expenditures were ¥23.6B, 1.25x depreciation ¥18.9B, maintaining a balance between maintenance/replacement and growth investment. ROIC = Operating Income ¥125.7B ÷ Invested Capital (Interest-bearing debt ¥27.7B + Net Assets ¥993.5B) = 12.3%, a high level. 【Financial Soundness】Equity Ratio 76.9% (prior 75.4%, +1.5pt), Current Ratio 167.2%, Quick Ratio 161.9% — liquidity is ample. Interest-bearing debt ¥27.7B, Debt/EBITDA 0.19x, Interest Coverage 392.9x indicate an extremely conservative capital structure. Cash and deposits ¥295.3B are 17.4x short-term interest-bearing debt ¥17.0B, making refinancing risk minimal.
Operating Cash Flow was ¥93.0B (YoY -4.4%). From OCF subtotal ¥140.8B, adjustments including corporate tax payments ¥49.1B, increase in inventory -¥2.4B, and other working capital movements resulted in the OCF figure. YoY, OCF subtotal was ¥140.8B (prior ¥137.8B) — a slight increase — but corporate tax payments rose by ¥8.0B to ¥49.1B (prior ¥41.1B) and working capital normalization lagged slightly, causing overall OCF to decline YoY. Investing Cash Flow was -¥30.5B, led by capex -¥23.6B, intangible asset acquisitions -¥6.1B, and acquisitions of investment securities -¥17.4B. Inflows included sales of investment securities ¥5.5B and net increase in time deposits ¥13.7B. Free Cash Flow (OCF + Investing CF) was ¥62.5B, down from ¥82.3B prior year, but remained sufficient to cover dividend payments ¥45.5B and share buybacks ¥11.6B (total ¥57.1B). Financing Cash Flow was -¥67.5B, driven by long-term debt repayments -¥6.0B, net increase in short-term borrowings ¥2.9B, share buybacks -¥11.6B, and dividend payments -¥45.5B. Cash and cash equivalents at period-end were ¥257.1B (prior ¥262.1B), a slight decline, but liquidity remained ample and the company has established a self-sustaining cash cycle without reliance on external funding.
Current period earnings were primarily from core operations; extraordinary items were minor (extraordinary gains ¥0.3B, extraordinary losses ¥0.5B). Non-operating income ¥7.7B (0.6% of revenue) comprised interest and dividends received ¥1.4B, insurance income ¥0.3B, etc.; while the amount doubled YoY, it remained below 1% of revenue, indicating low dependence on one-off factors. The difference between Ordinary Income ¥132.3B and Net Income ¥76.7B is mainly attributable to tax burden (income taxes ¥45.5B, effective tax rate 34.5%), with no structural abnormal items observed. Comprehensive income ¥89.9B exceeded Net Income by ¥13.2B, aided by an increase in Other Comprehensive Income on available-for-sale securities ¥3.4B. Accrual quality is good: OCF ¥93.0B exceeded Net Income ¥76.7B, and the accrual ratio was low at -0.5%. However, OCF/EBITDA 0.64x is somewhat low, and the increase in tax payments and slight rise in working capital are assessed as temporary factors suppressing cash conversion efficiency.
Full year guidance projects Revenue ¥1,300.1B (YoY +4.2%), Operating Income ¥130.5B (+3.8%), Ordinary Income ¥133.7B (+1.0%), Net Income ¥76.4B (-0.5%), and EPS ¥215.80. Versus current period results (Revenue ¥1,247.4B, Operating Income ¥125.7B, Ordinary Income ¥132.3B, Net Income ¥76.7B), guidance assumes increases in Revenue and Operating Income, while Ordinary Income and Net Income are planned to remain roughly flat. Progress rates are Revenue 95.9%, Operating Income 96.3%, Ordinary Income 99.0%, Net Income 100.4%, indicating performance largely on track. The outlook for the next fiscal year assumes continued stable growth in the Moving Business and sustained double-digit growth in the three ancillary services, incorporating price optimization and efficiency-driven investments to maintain or slightly improve margins.
Annual dividend is ¥98 (Interim ¥30, Year-end ¥68 including a commemorative dividend ¥10), with a Payout Ratio of 45.0%. This is a substantial increase from the prior year dividend ¥15 (annualized), but excluding the commemorative dividend the base dividend is ¥88, indicating a continued substantive dividend increase trend. Total dividend payout ¥45.5B versus FCF ¥62.5B yields FCF coverage of 1.37x, indicating high sustainability. Share buybacks of ¥11.6B were executed, bringing total return to shareholders to ¥57.1B and Total Return Ratio to 74.4%. Coverage of dividends plus buybacks by FCF is 1.09x, meaning shareholder returns are within self-funded capacity. Given the strong balance sheet (Cash ¥295.3B, Interest-bearing debt ¥27.7B), continuation of a stable dividend policy with opportunistic buybacks is feasible.
Revenue concentration risk: The Moving Business accounts for 84.4% of revenue and the majority of segment profit, making performance sensitive to economic cycles, intensified competition, and labor shortages. Heavy reliance on the busy season (March–April) creates concentration risk; adverse weather or disasters could materially impact supply-demand dynamics. Given the high revenue share, fluctuations in moving unit prices or order volumes directly affect company-wide profit, so expanding non-core businesses to diversify revenue sources remains a key challenge.
Cost inflation pressure: Gross margin declined 0.7pt YoY to 37.7%; increases in personnel costs, fuel costs, and subcontracting unit prices were not fully offset by price pass-through. Structural upward pressure on wages due to continued labor shortages and persistently high fuel prices raise transportation costs. Rising subcontracting rates for partner companies also trend upward; balancing pricing policy and cost efficiency will be critical to maintain margins.
Short-term liabilities and liquidity management: Short-term liability ratio is relatively high at 61.3%; short-term borrowings ¥17.0B, accounts payable ¥76.3B, and advance receipts ¥40.8B make up most current liabilities. With cash ¥295.3B, near-term refinancing risk is low, but the skill of working capital management remains a factor affecting profit and cash flow volatility. In addition, market fluctuations in investment securities ¥71.5B could cause swings in AOCI (this period +¥3.4B), impacting comprehensive income.
Profitability & Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 10.1% | 6.3% (3.7%–8.5%) | +3.8pt |
| Net Profit Margin | 6.2% | 2.7% (1.6%–4.7%) | +3.4pt |
Profitability ranks high within the transportation industry, with operating margin +3.8pt and net profit margin +3.4pt above medians.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 3.1% | 5.0% (-0.4%–9.4%) | -1.9pt |
Revenue growth trails the industry median, indicating a more conservative growth pace.
※ Source: Company compilation
Operating margin of 10.1% is high within the transportation sector but contracted 0.6pt YoY, with gross margin down 0.7pt. Increases in personnel costs, fuel costs, and subcontracting unit prices were not fully passed through; execution of pricing strategies and cost-efficiency initiatives will be key to margin reversal. High growth in the three ancillary services (Electrical Works +8.7%, Clean +5.2%, Reuse +14.2%) contributes to revenue diversification, and expansion of profit contribution outside of Moving remains notable.
Capital structure is extremely robust: Equity Ratio 76.9%, Debt/EBITDA 0.19x, Interest Coverage 392.9x, Cash ¥295.3B. FCF ¥62.5B exceeds dividend and buyback total ¥57.1B, establishing a self-sustaining funding cycle without external sourcing. OCF/EBITDA 0.64x is slightly low, but attributed to higher tax payments and temporary working capital factors; recovery in cash conversion efficiency is expected.
Shareholder returns are proactive: Payout Ratio 45.0%, Total Return Ratio 74.4%, and base dividend excluding the commemorative ¥88 represents a substantive increase trend. Given strong liquidity and low leverage, the company is positioned to maintain stable dividends and flexible buybacks, supporting high medium-to-long-term sustainability of shareholder returns.
This report is an earnings analysis document automatically generated by AI from XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company based on public financial statements. Investment decisions should be made at your own responsibility and, if necessary, in consultation with a professional advisor.