| Metric | Current Period | Prior Year Same Period | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥2698.6B | ¥2478.9B | +8.9% |
| Operating Income / Operating Profit | ¥238.2B | ¥231.6B | +2.9% |
| Ordinary Income | ¥248.5B | ¥239.7B | +3.7% |
| Net Income / Net Profit | ¥92.2B | ¥64.0B | +44.0% |
| ROE | 3.8% | 2.6% | - |
For the fiscal year ended March 2026, Revenue was ¥2698.6B (YoY +¥219.7B, +8.9%), Operating Income was ¥238.2B (YoY +¥6.6B, +2.9%), Ordinary Income was ¥248.5B (YoY +¥8.8B, +3.7%), and Net Income attributable to owners of the parent was ¥92.2B (YoY +¥28.2B, +44.0%). The company achieved both top-line and bottom-line growth, but Operating Income margin softened to 8.8% from 9.3% a year earlier (down 0.5pt) as SG&A growth outpaced gross margin expansion. Net Income rose substantially driven by Special Income of ¥26.5B, including ¥14.2B gain on sales of investment securities.
[Revenue] Revenue of ¥2698.6B (+8.9%) benefited from firm cargo movements in automotive, housing, and agricultural machinery and the start-up of new locations. By segment, Transport Business was largest at ¥1247.2B (+5.4%), Warehouse Business ¥432.7B (+5.1%), Packaging Business ¥581.6B (+0.5%), Test Business ¥245.9B (+1.8%)—all showing revenue increases—and Other ¥228.9B (+127.6%) rose sharply due to expansion of new businesses such as packaging material manufacturing and sales. Cost of sales was ¥2270.1B (+8.7%), Gross Profit was ¥428.5B (+10.4%), and Gross Margin improved 0.3pt to 15.9% (prior 15.6%).
[Profitability] Operating Income increased to ¥238.2B (+2.9%), but a large SG&A increase to ¥190.3B (+21.6%) weighed on results, driving Operating Income margin down 0.5pt to 8.8% (prior 9.3%). The SG&A increase was mainly attributable to higher goodwill amortization of ¥13.0B (prior ¥5.3B), increased personnel and depreciation expenses, and costs associated with launching new sites. Non-operating income was ¥29.1B, led by dividend income of ¥11.8B; non-operating expenses were ¥18.8B and included interest expense ¥7.9B (prior ¥4.5B) and foreign exchange losses ¥6.1B (prior ¥12.5B). The reduction in foreign exchange losses led Ordinary Income of ¥248.5B (+3.7%), outpacing Operating Income growth. Special income of ¥26.5B (gain on sale of investment securities ¥14.2B, gain on sales of fixed assets ¥7.4B, etc.) less Special losses of ¥1.5B resulted in Profit Before Income Taxes of ¥273.5B (+13.3%). After income taxes of ¥89.8B, Net Income was ¥92.2B (+44.0%). In summary, the company delivered revenue and profit growth, but rising SG&A and dependence on special income were notable features.
The Transport Business drove the largest operating profit increase, recording Operating Income ¥75.2B (+19.1%); although its margin was low at 6.0%, volume expansion and price improvements contributed. Warehouse Business posted Operating Income ¥88.3B (+3.1%) with a high margin of 20.4%, aided by the operation of large logistics facilities. Packaging Business delivered Operating Income ¥44.3B (+4.3%) with a margin of 7.6%, reflecting steady demand for distribution加工 (distribution processing) services. Test Business recorded Operating Income ¥40.2B (+0.7%) with a margin of 16.3%, with automotive-related test demand remaining in a flat range. The Other category widened into an operating loss of ¥10.6B (prior year loss ¥0.2B) as start-up costs for new businesses such as packaging material manufacturing increased.
[Profitability] Operating Income margin was 8.8% (prior 9.3%), down 0.5pt. Gross margin improved to 15.9% from 15.6% (up 0.3pt), but the increase in SG&A ratio to 7.1% (prior 6.3%) pressured overall margins. ROE of 3.8% is modest when estimated against an average equity during the period of ¥2467B, though year-end-based calculations warrant caution as noted below. Net Margin improved to 3.4% (prior 2.6%) due to the contribution of special income. [Cash Quality] Operating Cash Flow (OCF) was ¥381.6B, 4.1x Net Income of ¥92.2B. EBITDA estimated at ¥412B (Operating Income ¥238B + Depreciation ¥174B) gives an OCF coverage ratio of 0.93x, indicating very healthy cash conversion of profits. The accrual ratio (Net Income - OCF) / Total Assets is -6.6%, suggesting conservative accounting and stable cash generation. [Investment Efficiency] Capital expenditures of ¥268.8B were 1.54x depreciation of ¥174.2B, indicating continued growth investment; Total Asset Turnover was 0.62x (Revenue ¥2698B / Total Assets ¥4364B), typical for an asset-intensive logistics operator. [Balance Sheet Soundness] Equity Ratio was 55.6% (prior 58.1%), indicating stability; Debt/Equity was 0.29x (interest-bearing debt ¥689B / Equity ¥2378B), and Interest Coverage was 48x (OCF ¥382B / Interest paid ¥7.9B), reflecting very strong solvency. Current Ratio was 143.7%, and Cash and Deposits were ¥375B, indicating ample short-term liquidity.
OCF was ¥381.6B (YoY +38.0%), a significant increase. From OCF subtotal of ¥448.3B, payments of income taxes ¥82.2B were made; working capital changes included a decrease in accounts receivable of ¥27.6B as an inflow and a decrease in accounts payable of ¥8.1B as an outflow, among other working capital movements. Investing Cash Flow was -¥255.6B, led by capital expenditures of ¥268.8B (prior ¥267B); the one-off acquisition of subsidiary shares of ¥267B eased the outflow to half of prior year -¥540B. Financing Cash Flow was -¥111.2B, including long-term borrowings proceeds of ¥340B, net decrease in short-term borrowings ¥178B, bond redemptions ¥100B, dividends ¥77.2B, and share buybacks of ¥150B. Free Cash Flow was ¥126.0B (OCF ¥382B - Investing CF ¥256B), covering dividends and share buybacks with OCF and long-term borrowings. Ending cash was ¥375.1B (prior ¥368B), a slight increase; longer-term financing improved liquidity stability.
Ordinary Income of ¥248.5B was boosted to Profit Before Income Taxes of ¥273.5B by Special Income of ¥26.5B (gain on sales of investment securities ¥14.2B, gain on sales of fixed assets ¥7.4B, gain from pension plan revision ¥4.8B, etc.). Special losses were minor at ¥1.5B. Most Special Income items are one-off, and normalization next year would likely pull Pre-tax Profit toward Ordinary Income levels. Of Non-operating income ¥29.1B, dividend income ¥11.8B is repeatable, while foreign exchange loss ¥6.1B (prior ¥12.5B) carries market-dependent volatility. Operating Income of ¥238.2B reflects core operating capability, and equity-method investment income of ¥5.3B is a stable income source. OCF/Net Income 4.1x and accrual ratio -6.6% indicate high quality of accounting profits and robust cash generation that exceeds accounting profit. Comprehensive Income was ¥201.8B (Net Income ¥92.2B + Other Comprehensive Income ¥109.6B), including foreign currency translation adjustments ¥12.4B, actuarial gains/losses on retirement benefits ¥4.8B, valuation differences on securities ¥0.3B, etc.; most Other Comprehensive Income is unrealized gains/losses, and divergence from Net Income is limited.
Full year guidance calls for Revenue ¥2850B (+5.6%), Operating Income ¥267B (+12.1%), Ordinary Income ¥275B (+10.6%), Net Income ¥223B (+141.9%), EPS ¥191.16, and annual dividend ¥56. Operating Income is projected to rise about ¥29B from ¥238B this period, premised on slower SG&A growth, utilization rate improvements, and a higher share of value-added services. The large projected increase in Net Income assumes that, even after normalization of Special Income, core business profit growth will achieve the target. Progress rates are Revenue 94.7%, Operating Income 89.2%, Ordinary Income 90.4%, indicating performance largely in line with plan and achievable through final-quarter accumulation. The dividend guidance ¥56 (interim ¥37, year-end ¥19, adjusted for stock split effects) reflects a level adjusted from the current period dividend ¥75 and maintains a stable dividend policy.
The annual dividend is ¥75 per share (interim ¥37, year-end ¥38), with a Payout Ratio of 40.3%. Total dividends of ¥77.2B divided by average shares outstanding during the period of 119,313 thousand shares equals the equivalent of ¥63 per share, but due to a 2-for-1 stock split executed in October 2024, the pre-split year-end dividend is effectively ¥108. The Payout Ratio of 40.3% is at a sustainable level, and dividends of ¥77B are well covered by OCF ¥382B and FCF ¥126B. Share buybacks of ¥150B were executed, raising total return (dividends ¥77B + share buybacks ¥150B = ¥227B); total return ratio increases relative to dividends alone but remains absorbable by OCF and long-term borrowings. Treasury stock expanded to ¥254.7B (prior ¥105B), holding 9,822 thousand shares (7.8%) out of issued shares of 126,480 thousand. The dividend policy remains to maintain stable dividends while using agile share buybacks to improve capital efficiency.
Risk of margin pressure from rising fixed costs: SG&A rose 21.6% YoY, far exceeding revenue growth of 8.9%, with higher goodwill amortization ¥13.0B (prior ¥5.3B), increased depreciation ¥23.4B, and higher personnel costs reducing margins by 0.5pt. Continued start-up costs for new locations and rising labor costs could depress operating leverage and sustain weaker margins. If the SG&A ratio rise to 7.1% (prior 6.3%) becomes entrenched, medium-term margin improvement will be difficult.
Dependence on automotive-related demand and market volatility risk: Approximately 40% of segment revenue is derived from finished vehicles and automotive parts, so customer production plan fluctuations directly affect utilization and profitability. Deterioration in domestic or international automotive markets, changes in logistics demand due to electrification, and supply-chain reconfigurations could materially affect profitability across transport, warehouse, and test businesses. FX volatility also impacts non-operating items; given the ¥6.1B FX loss this period, appreciation of the yen could cause additional losses.
Dependence on Special Income and sustainability of earnings risk: Of Net Income ¥92.2B, Special Income ¥26.5B (e.g., gain on sale of investment securities ¥14.2B) accounted for roughly 29%, inflating earnings via one-offs. If Special Income normalizes in subsequent periods, Net Income could revert toward Ordinary Income-based levels (Ordinary Income ¥248B × implied effective tax rate ~60% ≈ ¥149B), and the sustainability of dividend funding will depend on core business profit progress. While OCF/Net Income is high at 4.1x and cash generation is strong, dependence on Special Income warrants attention regarding quality of earnings.
Profitability & Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Income Margin | 8.8% | 6.3% (3.7%–8.5%) | +2.5pt |
| Net Margin | 3.4% | 2.7% (1.6%–4.7%) | +0.7pt |
Operating Income margin exceeds the industry median by 2.5pt, reflecting a composite operation of transport and warehousing and the contribution of high-margin warehouse operations.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 8.9% | 5.0% (-0.4%–9.4%) | +3.9pt |
Revenue growth outpaced the industry median by 3.9pt, driven by firm cargo movements in automotive, housing, and agricultural machinery and the commissioning of new sites.
※ Source: Company compilation
Trend of declining Operating Income margin and importance of SG&A control: In the period, SG&A growth (+21.6%) outpaced Gross Profit growth (+10.4%), and Operating Income margin fell 0.5pt to 8.8%. Increased goodwill amortization, personnel and depreciation expense growth, and start-up costs for new sites were the main drivers; if fixed cost growth continues, this could structurally compress margins. Suppressing the SG&A ratio increase from 7.1% (prior 6.3%), improving utilization, and passing-through price increases will be key to margin recovery. While the industry comparison shows an above-median Operating Income margin at 8.8%, recovery to past levels of 9.3% will be a focus in subsequent periods.
High cash generation and room for growth investment: OCF ¥382B is 4.1x Net Income ¥92B and OCF/EBITDA is 0.93x, sustaining strong cash generation and enabling coverage of capital expenditures ¥269B, dividends ¥77B, and share buybacks ¥150B through OCF and long-term borrowings. With Debt/Equity 0.29x and Interest Coverage 48x, the company has substantial financial capacity to pursue both growth investments and shareholder returns. Whether capacity expansion investments in warehousing and transport translate into future profit contribution will determine ROE improvement and sustainable profit growth.
This report is an earnings analysis document automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the firm based on publicly disclosed financial statements. Investment decisions are your responsibility; please consult a professional advisor as necessary.