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.
| Metric | Current Period | Same Period of Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥1545.6B | ¥1539.5B | +0.4% |
| Operating Income | ¥102.2B | ¥96.2B | +6.2% |
| Ordinary Income | ¥108.3B | ¥97.6B | +11.0% |
| Net Income | ¥89.0B | ¥63.2B | +40.9% |
| ROE | 2.9% | 2.1% | - |
Although revenue growth remained modest, the Company secured higher operating income due to improved profitability in the Plant Engineering and Maintenance Business, while net income increased significantly following the recognition of extraordinary income, including gains on the sale of investment securities. Revenue was ¥1,545.6B (+0.4% YoY), operating income was ¥102.2B (+6.2%), ordinary income was ¥108.3B (+11.0%), and net income attributable to owners of the parent was ¥88.7B (+40.9%). The increase in net income was largely attributable to extraordinary income of ¥35.9B, including ¥32.2B in gains on the sale of investment securities, resulting in a growth rate exceeding that of operating income.
【Revenue】
Revenue was ¥1,545.6B, essentially flat at +0.4% YoY. By segment, the Logistics Business generated ¥758.7B (49.1% of total revenue, +1.3%), the Plant Engineering and Maintenance Business generated ¥735.7B (47.6%, -0.1%), and Other Businesses generated ¥73.9B (4.8%, -3.4%). A slight increase in Logistics revenue provided support for the overall result, while the Plant Engineering and Maintenance Business remained broadly flat.
【Profit and Loss】
Operating income was ¥102.2B (+6.2% YoY), with the Plant Engineering and Maintenance Business generating ¥75.5B (+14.0%, operating margin of 10.3%) and contributing approximately 74% of total Company profit on an unadjusted basis, thereby driving earnings growth. In contrast, the Logistics Business posted operating income of ¥21.1B (-14.7%, operating margin of 2.8%), representing a decline in profit as higher costs pressured margins despite higher revenue. Ordinary income increased to ¥108.3B (+11.0%), supported by stable non-operating income and expenses, including ¥5.7B in dividend income. Following the recognition of ¥35.9B in extraordinary income, including ¥32.2B in gains on the sale of investment securities, net income attributable to owners of the parent reached ¥88.7B (+40.9%). Excluding the contribution from extraordinary income, core earnings growth was limited to +6.2% based on operating income. Accordingly, while the Company achieved higher revenue and operating income, the significant increase in net income was heavily influenced by temporary factors.
The Plant Engineering and Maintenance Business generated revenue of ¥735.7B (-0.1%), but operating income increased to ¥75.5B (+14.0%), with profitability improving to an operating margin of 10.3%. It became the core earnings source, accounting for 74.1% of Company-wide operating income on an unadjusted basis (¥101.9B). The Logistics Business recorded higher revenue of ¥758.7B (+1.3%), but operating income declined to ¥21.1B (-14.7%), with its operating margin falling to 2.8%, resulting in higher revenue but lower profit. Other Businesses, including information systems, personnel dispatching, and equipment leasing, generated revenue of ¥73.9B (-3.4%) and profit of ¥5.3B (+5.2%), representing a modest increase in profit. While the Plant Engineering and Maintenance Business’s increased relative contribution to profit supported the improvement in the Company-wide operating margin to 6.6% (+0.36pt), deteriorating profitability in Logistics remains a concern for the future earnings structure.
【Profitability】 Gross margin was 12.0% (11.1% in the previous year, +0.86pt), operating margin was 6.6% (+0.36pt), and ordinary income margin was 7.0%, with all indicators improving from the previous year. Net profit margin, based on net income attributable to owners of the parent, increased to 5.7% (4.1% in the previous year); however, this increase was largely attributable to extraordinary income and exceeded the improvement at the operating level. 【Cash Flow Quality】 Non-operating income and expenses remained stable, with dividend income of ¥5.7B and interest income of ¥1.9B exceeding interest expenses of ¥3.8B. However, extraordinary income of ¥35.9B is non-recurring in nature, and the difference between underlying operating income-based earnings power and reported net income should be considered when evaluating earnings quality. 【Investment Efficiency】 ROE was 2.9%, comprising a DuPont decomposition of net profit margin of 5.7% × total asset turnover of 0.27 times × financial leverage of 1.86 times. The improvement for the current period was primarily attributable to the increase in net profit margin, while changes in asset turnover and leverage were limited. 【Financial Soundness】 The equity ratio was 54.3% (essentially flat from 54.2% in the previous year), the current ratio was 183.4%, and interest coverage based on operating income was approximately 27.1 times, all indicating sound financial condition. Interest-bearing debt, comprising short-term borrowings, long-term borrowings, bonds, and commercial paper, totaled ¥1,062.5B, remaining conservative relative to equity of ¥3,098.3B.
Based on changes in the balance sheet, cash and deposits increased to ¥532.6B from ¥461.4B in the previous year, a rise of +15.5%, indicating an accumulation of on-hand liquidity. Meanwhile, accounts payable and notes payable decreased by -12.4%, from ¥497.5B to ¥435.7B, while other current assets increased by +¥67.1B, indicating that working capital expanded. In terms of financing, long-term borrowings increased to ¥294.1B (+25.6%) and commercial paper increased to ¥400.0B (+33.3%), suggesting that the accumulation of working capital and capital expenditures were financed through both long-term and short-term external funding. As cash and deposits and interest-bearing debt increased simultaneously, funds were actively flowing in and out. However, the impact of declining accounts payable and expanding working capital on operating cash flow generation should be monitored going forward.
Breaking down the factors behind the increase in net income attributable to owners of the parent of ¥88.7B, in addition to operating income growth (+6.2%, +¥6.0B), extraordinary income of ¥35.9B, including ¥32.2B in gains on the sale of investment securities, made a significant contribution to the increase, exceeding the scale of improvement in recurring earnings power. Income taxes of ¥55.2B represented an effective tax rate of 38.3% against pretax income of ¥144.2B, somewhat higher than the statutory effective tax rate, with the heavy tax burden partially offsetting the increase in net income. Comprehensive income was ¥92.7B (¥92.2B attributable to owners of the parent). The difference from net income of ¥88.7B was primarily attributable to foreign currency translation adjustments of +¥16.5B, valuation differences on available-for-sale securities of -¥10.0B, and adjustments related to retirement benefits of -¥2.9B. As foreign-exchange valuation gains exceeded valuation losses, comprehensive income exceeded net income. While dividend income of ¥5.7B was recorded steadily as non-operating income, extraordinary income is strongly non-recurring in nature. From the next fiscal year onward, it will therefore be necessary to assess the sustainability of core operating income, particularly in the Plant Engineering and Maintenance Business, without assuming the recognition of extraordinary gains of a similar magnitude.
Progress against the full-year forecast for the first quarter (three-month period) was 24.2% for revenue (¥1,545.6B/¥6,385.0B), 21.7% for operating income (¥102.2B/¥470.0B), 23.8% for ordinary income (¥108.3B/¥455.0B), and 26.9% for net income (¥88.7B/¥330.0B). Compared with the simple quarterly allocation level of 25%, operating income was slightly below plan, while net income was ahead due to the recognition of extraordinary income. The Company has not revised either its earnings forecast or dividend forecast, and no significant change has been indicated in management’s view of the full-year plan.
The Company plans to conduct a five-for-one stock split of its common shares, effective October 1, 2026. Adjustments before and after the split are therefore necessary when comparing dividend amounts. Without taking the split into account, the forecast fiscal year-end dividend for the fiscal year ending March 2027 is ¥135/share, and total annual dividends are expected to be ¥264/share, representing an increase from the previous fiscal year’s actual dividend of ¥118/share. Based on the post-split forecast EPS of ¥131.66, restated to the pre-split equivalent (¥131.66×5=¥658.3), the payout ratio is approximately 40.1% (¥264/¥658.3). Given the significant contribution of extraordinary income to net income, the sustainability of dividends as a source of shareholder returns will depend primarily on the accumulation of core operating income and operating cash flow.
Deteriorating profitability in the Logistics Business: Operating income in the Logistics Business was ¥21.1B (-14.7% YoY), with an operating margin of 2.8%, remaining well below the 10.3% margin of the Plant Engineering and Maintenance Business. A decline in profit despite higher revenue suggests the impact of rising costs or unit-price competition, necessitating monitoring from an earnings-structure perspective.
Increasing reliance on short-term financing: The balance of commercial paper increased to ¥400.0B (+33.3% YoY), and, together with short-term borrowings of ¥218.4B, the weighting of short-term financing has risen. Although the current ratio of 183.4% indicates sound short-term payment capacity, changes in financing conditions could affect funding costs.
Earnings quality (dependence on temporary factors): A considerable portion of the increase in net income of ¥88.7B (+40.9%) was attributable to extraordinary income of ¥35.9B, including gains on the sale of investment securities of ¥32.2B, exceeding operating income growth of +6.2%. There is no guarantee that extraordinary gains of a similar magnitude will continue in subsequent periods, making it important to assess the underlying strength of core earnings.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 6.6% | 7.1% (2.3%–8.5%) | -0.5pt |
| Net Profit Margin | 5.8% | 4.9% (0.7%–5.9%) | +0.8pt |
The operating margin is slightly below the industry median, while the net profit margin exceeds the industry median, with the recognition of extraordinary income contributing to the increase.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 0.4% | 4.1% (3.3%–11.2%) | -3.7pt |
The revenue growth rate is below both the industry median and the lower bound of the IQR, indicating that top-line growth is relatively sluggish within the industry.
※Source: Compiled by the Company
Operating income in the Plant Engineering and Maintenance Business was ¥75.5B (+14.0%), with an operating margin of 10.3%, generating more than 70% of Company-wide profit and serving as the core of the earnings structure. Maintaining project profitability in this business will determine the direction of the Company-wide operating margin.
The increase in net income of ¥88.7B (+40.9%) was largely attributable to extraordinary income of ¥35.9B, including gains on the sale of investment securities of ¥32.2B. The difference from operating income growth of +6.2% indicates the magnitude of the temporary factors.
While financial soundness remained strong, with an equity ratio of 54.3%, a current ratio of 183.4%, and interest coverage of approximately 27.1 times, ROE of 2.9% remained relatively low in terms of capital efficiency based on the DuPont decomposition of total asset turnover of 0.27 times and financial leverage of 1.86 times.
This is a reference range mechanically calculated solely from publicly available data using a residual income model (Ohlson-type model with an explicit five-year fade). It is not a forecast of the market share price or a recommendation of any specific investment action.
| Scenario | Theoretical Stock Price |
|---|---|
| bear | ¥5,002 |
| base | ¥5,022 |
| bull | ¥5,043 |
| Calculation Assumption | Value |
|---|---|
| Book Value per Share (BPS) | ¥6,181 |
| Adjusted Forecast EPS | ¥139.5 |
| Cost of Equity r | 9.15% (10-year Japanese 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 | 30.0% |
| Forecast EPS Confidence Adjustment | ×1.060 (based on the industry’s historical guidance achievement rate) |
| implied PBR / PER |
Sensitivity: ¥4,882–¥5,167 at cost of equity ±1%, and ¥4,983–¥5,047 at ω±0.1.
Notes:
(Calculation model: Residual Income Model / Interest Rate Reference Month: 2026-06 / This value does not forecast or guarantee future share prices)
This report is an earnings analysis document automatically generated by AI based on XBRL financial results summary data. It does not recommend investment in any specific security. Industry benchmarks are reference information compiled by the Company based on publicly available financial results data. Investment decisions should be made at your own responsibility, after consulting professionals as necessary.
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| 0.81x / 36.0x |