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Daiei Kankyo Co (9336) investor relations material

Daiei Kankyo Co Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary8 Aug, 2025

Executive summary

  • Net sales for FY2026/3 1Q rose 3.4% year-on-year to ¥20,020 million, driven by infrastructure projects and resource recycling initiatives, despite higher costs and a challenging macroeconomic environment.

  • Operating profit declined 16.4% year-on-year to ¥4,260 million due to increased labor, depreciation, and outsourcing costs, but results were in line with initial plans.

  • Profit attributable to owners of parent fell 16.9% year-on-year to ¥2,906 million; EBITDA decreased 8.7% to ¥6,138 million.

  • Three companies were made consolidated subsidiaries through M&A, and a new company was established, supporting business expansion.

  • Released D-Plan 2028, a new medium-term management plan, and scheduled major facility completions in 2025.

Financial highlights

  • EBITDA for 1Q was ¥6,138 million, down 8.7% year-on-year; EBITDA margin decreased by 4.0pt to 30.7%.

  • Operating margin decreased to 21.3% from 26.3% year-on-year; gross profit for the quarter was ¥8,309 million, down from ¥8,748 million.

  • Profit attributable to owners of parent fell 16.9% year-on-year to ¥2,906 million; profit margin dropped 3.6pt to 14.5%.

  • Basic earnings per share for the quarter was ¥29.51, down from ¥35.28 year-on-year.

  • Comprehensive income declined 32.6% year-on-year to ¥2,543 million.

Outlook and guidance

  • Full-year net sales forecast is ¥83,900 million, with 1Q progress at 23.9%; operating profit forecast is ¥21,800 million, with 1Q progress at 19.5%.

  • No changes to previously announced earnings forecasts; management cautions that actual results may differ due to future factors.

  • Annual dividend forecast is ¥49.00 per share, up from ¥48.00 in the previous year; dividend payout ratio target remains at 33% or higher.

  • Waste management and recycling expected to maintain strong performance; sports promotion business faces cost pressures.

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Frequently asked questions

Daiei Kankyo Co., Ltd. is a Japanese company specializing in comprehensive waste management and environmental services. The company provides a wide range of services including industrial waste disposal, recycling, and environmental consulting. It caters to various sectors such as manufacturing, construction, and municipal services. Daiei Kankyo focuses on sustainable practices and innovative technologies to manage waste effectively, aiming to reduce environmental impact. The company is headquartered in Kobe, Hyogo, and its shares are listed on the TSE.

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