TAMAI STEAMSHIP CO.,LTD FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥2.47B
• Operating Income: ¥54M
• Net Income: ¥368M
• EPS: ¥1.56

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

Tamai Shipping Co., Ltd. (91270) reported FY2026 Q2 consolidated results under JGAAP showing a sharp profit compression amid softer topline and heavy non-cash charges. Revenue was ¥2,473 million, down 11.0% YoY, reflecting a weaker rate environment and/or lower vessel utilization. Operating income fell 87.8% YoY to ¥54 million, indicating significant margin pressure. Ordinary income turned to a loss of ¥23 million, but net income was a modest profit of ¥3 million (EPS ¥1.56), implying the presence of material extraordinary gains. Given net income of ¥3 million and income tax expense of ¥78 million, implied pre-tax income is roughly ¥81 million; combined with ordinary loss, this suggests extraordinary gains on the order of ~¥104 million in the period. Depreciation and amortization were ¥408 million, far exceeding operating income, underscoring a capital-intensive asset base typical of shipping. EBITDA was ¥462 million with an 18.7% margin, highlighting that cash earnings before depreciation remain intact despite thin operating profit. On the balance sheet, total assets were ¥13,417 million and total liabilities ¥3,341 million, with equity of ¥9,243 million; while the provided equity ratio shows 0.0% (unreported), the structure appears conservative. Liquidity indicators look very strong: current assets of ¥4,886 million against current liabilities of ¥834 million yield a current ratio of 585.6% and working capital of ¥4,052 million. Net leverage appears modest with a debt-to-equity ratio of 0.36x and EBIT-based interest coverage of 3.5x, though the reliance on small EBIT makes coverage sensitive to further earnings volatility. Operating cash flow was negative at ¥-49 million despite positive net income, with OCF/NI of -16.21, pointing to working capital outflows or timing factors. Financing cash flow was ¥-333 million, likely reflecting debt repayments and/or lease payments; dividends were not paid (DPS ¥0.00). Many line items are unreported in XBRL (e.g., C&CE, inventories, equity ratio, investing CF), which limits precision in certain conclusions. DuPont decomposition shows weak profitability: net margin 0.12%, asset turnover 0.184x, and financial leverage 1.45x, yielding an ROE of 0.03%. Overall, results reflect cyclical headwinds and cost pressure compressing operating profit, partly offset by extraordinary gains and strong liquidity. Sustainability of earnings will depend on rate recovery, utilization, cost discipline, and the cadence of required maintenance and environmental capex. Data gaps necessitate caution, but the balance sheet appears resilient, providing flexibility through the cycle.

Profitability Analysis

ROE_decomposition: Net profit margin 0.12% × Asset turnover 0.184 × Financial leverage 1.45 = ROE ~0.03% (matches reported 0.03%). ROE is being constrained almost entirely by ultra-thin margins rather than leverage or asset turn. margin_quality: Operating income of ¥54m on ¥2,473m sales implies an operating margin of ~2.2%, sharply lower YoY given the -87.8% decline in operating profit. Ordinary income was ¥-23m, indicating non-operating headwinds (e.g., forex, equity method, or financial costs). Net profit of ¥3m was achieved only after ~¥104m in implied extraordinary gains offsetting the ordinary loss and taxes, suggesting low quality of bottom-line earnings this quarter. operating_leverage: Revenue declined 11% YoY versus a far steeper 87.8% drop in operating income, evidencing high operating leverage and/or cost inflation. D&A of ¥408m versus EBIT of ¥54m indicates substantial fixed cost absorption. EBITDA margin at 18.7% remains decent, but conversion to EBIT is weak, highlighting sensitivity to day-rate/utilization fluctuation.

Growth Assessment

revenue_sustainability: Sales declined 11.0% YoY to ¥2,473m, consistent with softer charter markets or reduced operating days. Without fleet/voyage disclosures, sustainability is uncertain, but cyclicality in shipping suggests continued volatility. profit_quality: Ordinary loss of ¥23m and positive net income driven by extraordinary gains imply that current profitability is not purely from core operations. Effective tax expense of ¥78m against ¥3m NI distorts comparability and may reflect discrete items. outlook: Recovery hinges on charter rate trends, fleet utilization, bunker cost pass-through, and FX (USD/JPY). EBITDA of ¥462m indicates underlying cash-generating capacity, but EBIT compression and negative OCF flag near-term pressure. Clarity on contract mix (spot vs. time charter) will be key to outlook stability.

Financial Health

liquidity: Current assets ¥4,886m vs. current liabilities ¥834m: current ratio 585.6%, quick ratio 585.6% (inventories unreported). Working capital is ¥4,052m, providing a strong liquidity buffer. solvency: Total liabilities ¥3,341m and equity ¥9,243m imply a conservative capital base; reported debt-to-equity ratio is 0.36x. Interest expense of ¥15.6m and EBIT coverage of ~3.5x are acceptable but could tighten if EBIT weakens further. capital_structure: With total assets ¥13,417m and equity ¥9,243m, the implied equity ratio would be high despite the reported 0.0% (unreported). The structure appears under-levered for a capital-intensive sector, supporting resilience.

Cash Flow Quality

earnings_quality: OCF/Net income is -16.21, indicating poor near-term earnings-to-cash conversion, likely due to working capital outflows and timing. Net income was aided by extraordinary gains, lowering recurring cash quality. FCF_analysis: Free cash flow is shown as 0 in the dataset because investing CF is unreported (0 indicates undisclosed). High D&A (¥408m) suggests ongoing maintenance capex needs; therefore, true FCF is likely below OCF in steady state. working_capital: Negative OCF despite positive NI points to cash absorption in receivables or other current accounts. Without detail, we infer heightened WC volatility consistent with shipping cycles and payment timing.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0.00 and the payout ratio is shown as 0.0%. With minimal NI (¥3m) and negative OCF, a payout would not be well-covered near term. FCF_coverage: Reported FCF coverage is 0.00x due to unreported investing CF; given negative OCF and expected maintenance capex, underlying FCF coverage of dividends would likely be weak if dividends were resumed. policy_outlook: Given earnings volatility and capex needs typical for shipping, maintaining balance sheet flexibility appears prioritized over distributions in this period. Any future dividend resumption likely hinges on a visible recovery in core ordinary income and OCF.

Risk Assessment

Business Risks:

• Cyclical charter rate and utilization volatility affecting revenue and margins
• Fuel (bunker) price fluctuations and effectiveness of pass-through clauses
• FX exposure (USD/JPY) on revenues, costs, and asset values
• Regulatory and environmental compliance costs (EEXI/CII, decarbonization)
• Vessel downtime and dry-docking schedules impacting availability
• Customer concentration and counterparty credit risk

Financial Risks:

• Earnings sensitivity to rate declines given high operating leverage
• Potential for lower interest coverage if EBIT weakens further (currently ~3.5x)
• Working capital volatility driving negative OCF despite positive NI
• Maintenance and environmental capex requirements not visible in reported investing CF
• Exposure to impairment risk if market values of vessels decline

Key Concerns:

• Ordinary loss (¥23m) masked by extraordinary gains yielding only ¥3m NI
• OCF negative at ¥-49m with OCF/NI of -16.21, indicating weak cash conversion
• Significant D&A (¥408m) vs. EBIT (¥54m) underscores fixed-cost pressure and capex needs

Investment Implications

Key Takeaways:

• Revenue down 11% YoY and operating income down 87.8% indicate severe margin compression
• Ordinary loss offset by extraordinary gains; core profitability is weak
• Liquidity is strong (current ratio 585.6%) and leverage modest (D/E 0.36x)
• EBITDA margin 18.7% suggests underlying cash earnings capacity, but EBIT is thin
• Negative OCF and unreported investing CF obscure true FCF and dividend capacity

Metrics to Watch:

• Time charter equivalent (TCE) rates and fleet utilization
• Ordinary income trend and EBITDA-to-EBIT conversion
• Operating cash flow and working capital movements
• Maintenance/environmental capex pipeline and investing cash flows
• Interest coverage and debt maturity profile
• FX sensitivity and bunker cost pass-through

Relative Positioning: Within Japan-listed maritime peers, Tamai Shipping currently presents strong balance sheet liquidity and modest leverage but weaker core profitability (ordinary loss) and cash conversion this quarter; near-term positioning depends on rate recovery and capex cadence.

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