Yasuda Logistics (9324) FY2026 FY Earnings Report

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Executive Summary

For the fiscal year ended March 2026, Revenue / Net Sales amounted to ¥800.3B (YoY +¥49.1B +6.5%), Operating Income was ¥42.9B (YoY +¥7.7B +22.0%), Ordinary Income was ¥58.2B (YoY +¥8.4B +17.0%), and Net Income attributable to owners of the parent was ¥67.3B (YoY +¥39.3B +140.1%). The core Logistics Business grew steadily (+6.9%), and at the operating stage improvements in gross margin and restraint on selling, general and administrative expenses led Operating Margin to rise to 5.4% (prior year 4.7%) (+0.7pt). At the ordinary income stage, an increase in dividend income received of ¥24.7B (prior year ¥21.3B) contributed, and at extraordinary level gains on sales of investment securities of ¥24.2B and gains on sale of fixed assets of ¥17.1B were recorded, leading to a large YoY increase in final profit of +150.9%. Operating Cash Flow (OCF) secured ¥89.8B (YoY -30.9%); after capital expenditures of ¥75.1B, Free Cash Flow was ¥56.1B and dividend funding is well covered.

Drivers of Performance

[Revenue] Revenue was ¥800.3B (+6.5%), with the Logistics Business as the primary driver at ¥741.7B (+6.9%). Logistics (warehouse storage & operations, domestic land transport, international cargo handling) performed steadily, with price revisions and higher utilization proving effective. The Real Estate Business recorded ¥58.6B (+2.0%), with office building leasing in the Tokyo and Yokohama areas maintaining stable occupancy. Segment composition was Logistics 92.7%, Real Estate 7.3%, indicating continued high concentration in Logistics. Cost of goods sold totaled ¥695.1B, resulting in Gross Profit of ¥105.1B (Gross Margin 13.1%), an improvement of +0.4pt from prior year ¥95.6B (Gross Margin 12.7%).

[Profitability] Operating Income was ¥42.9B (+22.0%), with Operating Margin improving to 5.4% (prior year 4.7%) (+0.7pt). SG&A totaled ¥62.2B (7.8% of sales), increasing only +2.8% from prior year ¥60.5B, below sales growth of +6.5%, demonstrating operating leverage. Goodwill amortization was ¥5.0B (prior year ¥5.1B) largely flat, and depreciation included in SG&A was ¥4.3B (prior year ¥4.2B), a slight increase. Non-operating income totaled ¥28.1B, primarily dividend income received of ¥24.7B, while non-operating expenses were ¥12.7B, mainly interest expenses of ¥10.8B (prior year ¥9.1B). Ordinary Income was ¥58.2B (+17.0%); increased dividend income offset higher interest burden, raising Ordinary Income Margin to 7.3% (prior year 6.6%) (+0.7pt. Extraordinary income amounted to ¥41.3B (gains on sale of investment securities ¥24.2B, gains on sale of fixed assets ¥17.1B), and extraordinary losses were limited to ¥1.4B (loss on disposal of fixed assets, etc.). Profit before tax was ¥98.2B (+129.2%); after corporate taxes of ¥30.6B (effective tax rate 31.1%) and minority interest of ¥0.3B, Net Income attributable to owners of the parent was ¥67.3B (+140.1%). Extraordinary income of ¥41.3B, a temporary factor, accounted for about 38.1% of Net Income, so caution is required regarding a potential reversal next fiscal year. Conclusion: revenue and profit both increased.

Segment Analysis

The Logistics Business had Revenue ¥741.7B (+6.9%) and Operating Income ¥53.4B (+17.0%), with segment margin improving to 7.2% (prior year 6.6%) (+0.6pt). Price corrections and utilization improvements in warehouse storage & operations and domestic land transport contributed to margin expansion. The Real Estate Business had Revenue ¥58.6B (+2.0%) and Operating Income ¥20.3B (+9.9%), with segment margin rising substantially to 34.6% (prior year 29.6%) (+5.0pt). Office leasing in Tokyo and Yokohama maintained stable occupancy and preserved a high-margin structure. Total segment profits of ¥73.7B less corporate expenses of ¥29.8B (prior year ¥28.9B) and intersegment eliminations of ¥0.8B reconcile to consolidated Operating Income of ¥42.9B. High profitability in Real Estate continues to lift company margins.

Key Financial Metrics

[Profitability] Operating Margin improved to 5.4% from 4.7% (+0.7pt) driven by operating leverage. Gross Profit Margin rose to 13.1% (prior year 12.7%) (+0.4pt), aided by Logistics price revisions and high occupancy in Real Estate. Ordinary Income Margin increased to 7.3% (prior year 6.6%) (+0.7pt), with higher dividend income offsetting increased interest expense. Net Income Margin expanded to 8.4% (prior year 3.7%) (+4.7pt), though much of the increase is due to extraordinary income; the sustainable performance measure is Ordinary Income Margin of 7.3%. ROE was 6.0% (prior year 3.0%), roughly doubling, but the main driver of Net Income growth was one-off gains, suggesting a sustainable level around 6%. [Cash Quality] Operating Cash Flow to Net Income ratio was 1.33x, indicating sound accrual quality. Simple EBITDA, calculated as OCF ¥89.8B plus depreciation ¥49.7B, is approximately ¥139.5B, yielding an Operating CF/EBITDA ratio of 0.97x, signifying robust cash generation. [Investment Efficiency] Total Asset Turnover was 0.342x, indicating low asset efficiency. Tangible Fixed Asset Turnover was 0.79x (Revenue ¥800.3B ÷ Tangible Fixed Assets ¥1,015.0B), reflecting the low turnover characteristic of real estate and warehouse assets. [Financial Soundness] Equity Ratio improved to 46.3% (prior year 44.6%) (+1.7pt), indicating a stable financial base. Current Ratio was 189.5% (Current Assets ¥419.8B ÷ Current Liabilities ¥221.6B), and Quick Ratio was 183.9%, indicating very high short-term payment capacity. Interest-bearing debt amounted to ¥558.6B (long-term borrowings ¥535.7B, corporate bonds ¥165.0B, short-term borrowings ¥22.9B, etc.), with Debt/Equity ratio of 51.7%. Cash and deposits increased to ¥277.5B (prior year ¥205.0B) (+¥72.5B), and cash cover of short-term liabilities is 12.1x, indicating ample liquidity.

Cash Flow Analysis

Operating Cash Flow was ¥89.8B (prior year ¥130.1B, -30.9%). Starting from Profit before tax ¥98.2B and depreciation ¥49.7B, changes in working capital included increases in trade receivables of -¥12.2B and decreases in advances received of -¥12.1B as negative factors, while increases in trade payables +¥14.2B and decreases in inventories +¥12.3B offset these. Cash paid for corporate taxes was ¥15.4B; dividend income received ¥25.1B; interest paid ¥10.6B. OCF subtotal of ¥90.7B less corporate tax payments yields the reported OCF. Investing Cash Flow was -¥33.7B, with capital expenditures of ¥75.1B partially offset by proceeds from sale of marketable securities ¥26.2B and proceeds from sale of fixed assets ¥19.9B. Financing Cash Flow was +¥16.9B, with proceeds from long-term borrowings ¥93.6B exceeding long-term borrowing repayments ¥55.7B, dividend payments ¥14.3B, and share buybacks ¥2.2B. Free Cash Flow was ¥56.1B (OCF ¥89.8B + Investing CF -¥33.7B), covering dividends and share buybacks total ¥16.5B by 3.4x, indicating healthy internal funding generation. Cash and deposits rose from ¥205.0B at the beginning of the period to ¥277.5B at year-end (+¥72.5B), substantially strengthening liquidity.

Quality of Earnings

Quality of earnings at the operating stage is supported by Logistics price revisions and utilization improvements and stable operations in Real Estate; Ordinary Income of ¥58.2B (Ordinary Income Margin 7.3%) is the core recurring earnings level. Of Non-operating income ¥28.1B, dividend income received ¥24.7B (3.1% of sales) accounts for the majority, reflecting a structure where dividend income from investment securities including cross-shareholdings supports the ordinary income stage. Extraordinary income of ¥41.3B (gains on sale of investment securities ¥24.2B, gains on sale of fixed assets ¥17.1B) is a one-off factor and comprises about 38.1% of Net Income ¥67.3B. The gap between Ordinary Income and Net Income is ¥9.1B, with one-off gains contributing materially. OCF ¥89.8B is 1.38x Net Income ¥65.0B, indicating good accrual quality. Comprehensive Income was ¥158.9B, consisting of Net Income ¥65.0B plus valuation difference on available-for-sale securities ¥89.2B, adjustments related to retirement benefits ¥2.3B, foreign currency translation adjustments -¥0.5B, and deferred hedge gains/losses ¥0.2B; unrealized gains on securities boosted equity. Assuming the absence of extraordinary income next fiscal year, the sustainability of earnings will hinge on the ordinary income level.

Forecasts & Guidance

The full year (FY) forecast is Revenue ¥820.0B (+2.5%), Operating Income ¥41.0B (-4.4%), Ordinary Income ¥52.0B (-10.7%), Net Income attributable to owners of the parent ¥62.0B (-7.9%), EPS ¥214.71, and dividend ¥37. This fiscal year ended with Revenue ¥800.3B, Operating Income ¥42.9B, Ordinary Income ¥58.2B, Net Income ¥67.3B, with Operating Income and Net Income exceeding company guidance. Progress against the full year forecast is 97.6% for Revenue, 104.6% for Operating Income, 111.9% for Ordinary Income, and 108.5% for Net Income, indicating performance exceeded expectations from the operating stage onward. The company’s plan assumes decreases in Operating Income (-4.4%) and Ordinary Income (-10.7%), which appears to be a conservative view assuming the disappearance of extraordinary income of ¥41.3B this fiscal year. The Net Income forecast of ¥62.0B is close to this fiscal year’s Ordinary Income ¥58.2B and likely represents a baseline earnings plan excluding one-offs. The projected dividend of ¥37 is half of this year’s actual ¥70; an interim dividend of ¥29 has already been paid, and a year-end dividend of ¥8 is expected to total ¥37.

Shareholder Returns

Annual dividend was ¥70 (interim ¥29, year-end ¥41), a substantial increase from prior year ¥15. Dividend payout ratio relative to EPS ¥232.33 is 30.1%, up from 15.5% in the prior year, but still within a conservative range. Total dividends amounted to ¥14.3B, which is 25.5% of Free Cash Flow ¥56.1B and 15.9% of Operating Cash Flow ¥89.8B, indicating ample capacity. Share buybacks of ¥2.2B were executed; total shareholder return (dividends plus buybacks) amounted to ¥16.5B, resulting in a Total Return Ratio of 24.5% (Total Return ¥16.5B ÷ Net Income ¥67.3B). Cash and deposits ¥277.5B equate to 19.4 years of dividend payments at current levels, indicating very high dividend sustainability. The dividend forecast for next fiscal year is ¥37, and this year’s increase is considered a temporary level reflecting extraordinary income; dividends are expected to revert to a level aligned with ordinary income in the following year.

Risk Factors

1. Revenue concentration risk: The Logistics Business accounts for 92.7% of Revenue, so fluctuations in warehouse supply-demand or downward pressure on transport pricing could materially impact consolidated results. Given a low Gross Margin of 13.1%, profit sensitivity to price or volume declines is high, and operating leverage could reverse in an economic downturn.

2. Financial leverage and interest burden risk: With interest-bearing debt of ¥558.6B and simple EBITDA of approximately ¥139.5B, Debt/EBITDA is about 4.0x, a relatively high level. Interest expense increased +18.7% to ¥10.8B (prior year ¥9.1B); in a rising interest rate environment interest coverage (EBIT ¥42.9B ÷ Interest expense ¥10.8B = 3.97x) could deteriorate and pressure ordinary income. Attention should be paid to refinancing timing for long-term borrowings ¥535.7B and corporate bonds ¥165.0B.

3. Dependence on one-off income and risk of profit reversal next fiscal year: Of this fiscal year’s Net Income ¥67.3B, extraordinary income ¥41.3B (38.1%) is one-off. The company’s plan for next fiscal year anticipates Net Income ¥62.0B, a -7.9% decline. Gains on sale of investment securities and fixed assets are unlikely to recur regularly; the ordinary income level (¥58.2B) should be considered the company’s recurring earning power, so future profit growth will depend on increasing operating income. Dividend income received ¥24.7B is also subject to market conditions and changes in investee dividend policies.

Industry Benchmark (reference; company compiled)

Profitability & Returns

Operating Margin is -0.9pt below the industry median, but Net Income Margin exceeds the median by +5.4pt due to dividend income and extraordinary gains.

Growth & Capital Efficiency

Revenue growth exceeds the industry median by +1.5pt, reflecting successful capture of logistics demand and price revisions.

※Source: Company compilation

Notable Points from the Financial Results

1. Operating Margin improved by +0.7pt this fiscal year, indicating progress in operating efficiency. Price revisions and utilization improvements in Logistics and stable, high-margin Real Estate contributed, and operating leverage was effective—this is a structurally positive factor. If SG&A growth continues to lag sales growth, there is room for medium-term margin improvement.

2. Extraordinary income ¥41.3B, which accounts for 38.1% of Net Income, is a temporary factor; the company’s plan for next fiscal year is a conservative forecast based on ordinary income as the baseline. OCF ¥89.8B is 1.38x Net Income and of high quality, and Free Cash Flow ¥56.1B sufficiently secures dividend funding; this supports dividend sustainability and financial stability. Going forward, growth in operating income and stable dividend income are key to maintaining profit levels.

3. Although financial leverage (interest-bearing debt ¥558.6B and Debt/EBITDA ~4.0x) is somewhat high, substantial cash and deposits ¥277.5B and stable OCF mitigate short-term liquidity risk. Interest coverage is 3.97x (EBIT basis), indicating current payment capacity, but interest rate increases should be monitored for impact on ordinary income. Medium-term, capital expenditures ¥75.1B coming into operation and improvements in capital efficiency will be key to sustainable growth.

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This report is a financial 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 Company based on publicly disclosed financial statements. Investment decisions are your own responsibility—please consult a professional advisor as needed before making any investment decisions.