Cresco (4674) Q1 2026 earnings summary

Executive summary

• Reorganized business units and established new units to strengthen development and sales, including the Mobility DX Business Unit and Market Development Unit.

• Consolidated subsidiary IOS Co., Ltd. entered a 10-year partnership with Mitsubishi UFJ Trust and Banking to secure IT engineers.

• TAKAGI SYSTEM CO., LTD. was integrated to maximize synergies and expand business, and was newly included in the scope of consolidation during the period.

• Net sales for the three months ended June 30, 2025, rose 9.6% year-over-year to ¥15,080 million, with operating profit up 16.6% to ¥1,014 million and ordinary profit up 6.6% to ¥1,095 million.

• Profit attributable to owners of parent was ¥754 million, nearly flat year-over-year, while comprehensive income declined 4.0% to ¥1,334 million.

Financial highlights

• Net sales increased by 9.6% year-over-year, driven by digital solution demand and new consolidations.

• Operating profit rose 16.6% year-over-year, aided by the absence of prior M&A expenses.

• Ordinary profit up 6.6% year-over-year; profit decreased 0.2% due to higher income tax rates.

• Gross profit increased to ¥2,744 million from ¥2,497 million year-over-year, while selling, general, and administrative expenses rose to ¥1,729 million.

• EPS for the quarter was ¥18.33, reflecting a 2-for-1 share split effective July 1, 2024.

Outlook and guidance

• No change in full-year or half-year earnings forecasts for FY ending March 2026.

• FY2026 full-year forecast: net sales ¥31,100 million (+9.1% YoY), operating profit ¥2,870 million (+9.2% YoY), EPS ¥47.58.

• Full-year forecast for fiscal year ending March 31, 2026: net sales of ¥64,000 million (up 8.9% YoY), operating profit of ¥7,000 million (up 17.0%), and profit attributable to owners of parent of ¥4,900 million (up 11.2%).

• Dividend forecast for FY2026 is ¥58 per share, with payout ratio target raised to 50% from FY2026.

• Share buyback program up to 1,000,000 shares or ¥1.5 billion from May to November 2025.