Inui Global Logistics Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥15.69B
• Operating Income: ¥-71M
• Net Income: ¥3.26B
• EPS: ¥-0.37

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

In FY2026 Q2, 乾汽船株式会社 (Inui Global Logistics; TSE:9308) reported consolidated revenue of ¥15.692 billion, down 6.0% YoY, reflecting a softer freight environment and/or lower voyage activity. Gross profit was ¥3.588 billion, yielding a gross margin of 22.9%, indicating decent underlying voyage economics despite the topline decline. Operating income deteriorated to a modest loss of ¥71 million (operating margin approximately -0.5%), though the YoY change (+231.3%) suggests a substantial improvement from a larger prior-year loss. Ordinary income was a loss of ¥132 million, implying non-operating headwinds (e.g., interest expense of ¥192 million and potential FX/hedging effects typical for shipping). Net income was a small loss of ¥9 million, implying near break-even performance at the bottom line and a net margin of -0.06%. EBITDA was ¥1.495 billion, supported by high depreciation and amortization of ¥1.566 billion, consistent with an asset-intensive fleet business. The company generated strong operating cash flow (OCF) of ¥5.738 billion, materially exceeding accounting earnings and indicating robust cash generation from operations in the period. Liquidity appears sound with a current ratio of 198.8% and working capital of ¥12.183 billion. Capital structure is moderate with total liabilities of ¥38.028 billion versus equity of ¥35.701 billion, implying a debt-to-equity ratio of 1.07x and financial leverage (assets/equity) of 2.11x. Asset turnover of 0.208x and leverage of 2.11x combine with the slight negative margin to yield a calculated ROE of -0.03%, essentially flat but negative due to the small loss. Interest coverage on an EBIT basis is weak at -0.4x given negative operating income; however, positive EBITDA indicates underlying capacity to service interest if non-cash charges dominate. The reported income tax expense of ¥467 million alongside a near break-even net loss suggests timing/one-off tax effects under JGAAP rather than a normalized effective tax rate. No dividend was reported for the period (annual DPS ¥0.00), and payout metrics are not meaningful in a loss year. Several data points are unreported in the XBRL (e.g., cash and equivalents, investing cash flows, equity ratio, inventories, share counts), so interpretation relies on the available non-zero disclosures. Overall, the company is navigating a challenging freight market with stabilized gross profitability, near break-even earnings, solid liquidity, and strong OCF, while interest burden and non-operating items constrain ordinary income. Outlook hinges on freight rate trends, fleet utilization, bunker costs, and FX, with operating leverage implying earnings sensitivity to revenue recovery.

Profitability Analysis

roe_decomposition:

• net_profit_margin: -0.0006
• asset_turnover: 0.208
• financial_leverage: 2.11
• calculated_roe: -0.0003
• interpretation: ROE of approximately -0.03% reflects near break-even net income (-¥9 million) against sizable assets (¥75.273 billion). Modest asset turnover (0.208x) and moderate leverage (2.11x) cannot overcome the slightly negative margin. margin_quality: Gross margin of 22.9% (¥3.588b gross profit) indicates reasonable voyage economics despite a 6.0% revenue decline. Operating margin is approximately -0.5% due to fixed-cost intensity and depreciation drag. Net margin is essentially flat but negative at -0.06%, with non-operating items (notably ¥192m interest) and tax timing effects further compressing bottom-line results. operating_leverage: EBITDA of ¥1.495b versus operating loss of ¥71m highlights significant non-cash D&A (¥1.566b). This suggests high operating leverage: small revenue/margin improvements could swing EBIT positive, while rate softness risks deeper losses. Cost structure appears semi-fixed (fleet ownership/charters), amplifying sensitivity to freight rates and utilization.

Growth Assessment

revenue_sustainability: Revenue decreased 6.0% YoY to ¥15.692b, consistent with softer market conditions or lower volumes/charter rates. Given shipping cyclicality, sustainability depends on time-charter coverage versus spot exposure and sector mix (e.g., dry bulk, project cargo). profit_quality: Despite a near break-even net loss, cash conversion is strong (OCF ¥5.738b), indicating earnings are conservative relative to cash activity (working capital release and/or advance receipts may contribute). Gross margin resilience supports underlying economics, but ordinary income remains negative due to financing and other non-operating costs. outlook: Earnings trajectory will hinge on freight rate normalization, fleet deployment, bunker price trends, and JPY/USD movements. With high D&A and moderate interest costs, incremental revenue recovery could materially improve EBIT and ordinary income. Conversely, prolonged rate weakness would pressure margins given fixed costs.

Financial Health

liquidity: Current assets of ¥24.511b versus current liabilities of ¥12.328b yield a current ratio of 198.8% and working capital of ¥12.183b, indicating strong short-term coverage. Quick ratio equals the current ratio as inventories were unreported. solvency: Total liabilities are ¥38.028b and equity ¥35.701b (debt-to-equity 1.07x). Financial leverage (assets/equity) is 2.11x, moderate for an asset-heavy shipping operator. Interest expense of ¥192m with negative EBIT yields weak interest coverage on an EBIT basis, but positive EBITDA provides partial cushion. capital_structure: Total assets are ¥75.273b, funded roughly evenly by liabilities and equity. The equity ratio was not disclosed in XBRL (reported as 0.0%), but implied equity/asset ratio is approximately 47.4% based on available balances, suggesting a relatively balanced capital structure.

Cash Flow Quality

earnings_quality: OCF of ¥5.738b versus net income of -¥9m results in an OCF/NI ratio of -637.6, distorted by the small loss but indicative of robust cash generation relative to accounting profit. High D&A (¥1.566b) and potential working capital inflows underpin cash results. fcf_analysis: Investing cash flow was unreported, and free cash flow was reported as 0 within the dataset. Given high D&A, recurring maintenance capex is likely; thus, true FCF cannot be reliably assessed from the provided figures. working_capital: Positive OCF suggests favorable working capital dynamics (e.g., receivables collection, charter prepayments, or payables timing). Without a cash balance breakdown, the magnitude and sustainability of working capital benefits cannot be fully validated.

Dividend Sustainability

payout_ratio_assessment: Annual DPS is unreported (shown as ¥0.00) and payout ratio is 0.0% due to a small net loss. With earnings at break-even and positive OCF, the capacity to resume or grow dividends depends on stable profitability and visibility on capex. fcf_coverage: FCF coverage is reported as 0.00x due to lack of investing cash flow disclosure; thus, dividend coverage by FCF cannot be assessed from the data provided. policy_outlook: In a cyclical industry with earnings volatility, management is likely to balance shareholder returns against fleet investment and balance sheet resilience. A return to a sustainable dividend would require consistent positive ordinary income and clearer FCF after maintenance capex.

Risk Assessment

Business Risks:

• Freight rate volatility (dry bulk/other segments) impacting voyage revenues and margins
• Bunker fuel price fluctuations affecting voyage costs and TCE spreads
• Currency risk (USD/JPY) influencing revenue/expense mismatches and valuation
• Demand cyclicality tied to global trade, commodities, and industrial activity
• Counterparty risk on charterers and customers
• Operational risks including vessel downtime, port congestion, and logistics disruptions
• Regulatory and environmental compliance costs (e.g., CII/EEXI, emissions regulations) impacting capex and operating costs

Financial Risks:

• Interest rate and refinancing risk given ¥192m interest expense and moderate leverage
• Earnings sensitivity due to high fixed costs and D&A, pressuring interest coverage when EBIT is negative
• FCF visibility constrained by unreported investing cash flows and potentially lumpy capex for fleet maintenance/renewal
• FX translation and transaction impacts on ordinary income

Key Concerns:

• Negative operating and ordinary income despite stable gross margin
• Weak interest coverage on an EBIT basis (-0.4x)
• Unreported cash, investing cash flows, and share data limiting precision of liquidity and per-share analyses

Investment Implications

Key Takeaways:

• Revenue down 6.0% YoY to ¥15.692b, reflecting softer market conditions
• Gross margin healthy at 22.9%, but operating income slightly negative (-¥71m)
• Ordinary income negative (-¥132m) due to non-operating pressures including ¥192m interest
• Net income near break-even at -¥9m; ROE approximately -0.03%
• Strong OCF of ¥5.738b indicates solid cash generation despite accounting loss
• Liquidity is strong (current ratio 198.8%; working capital ¥12.183b)
• Moderate leverage (liabilities/equity 1.07x; assets/equity 2.11x) but weak EBIT coverage
• High D&A (¥1.566b) underscores asset intensity and operating leverage
• Dividend currently not indicated; payout constrained by earnings visibility and unknown FCF

Metrics to Watch:

• Freight rate indices (e.g., Baltic Dry Index) and time-charter equivalent (TCE) trends
• Bunker fuel prices and fuel adjustment mechanisms
• USD/JPY movements and hedging impacts on ordinary income
• EBIT and ordinary income trajectory vs. interest expense
• OCF sustainability and actual maintenance/expansion capex to derive true FCF
• Net debt to EBITDA and interest coverage (EBITDA-based) as credit metrics
• Fleet utilization, off-hire days, and contract coverage (spot vs. time-charter mix)

Relative Positioning: Within the cyclical marine transport space, the company exhibits solid liquidity and cash generation but weaker EBIT-based coverage versus peers with higher charter coverage or lower interest burden; earnings are poised to be highly sensitive to rate and utilization recovery given meaningful operating leverage.

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