Cresco (4674) Q2 2026 earnings summary

Executive summary

• Undertook major organizational restructuring, including new business units, acquisitions, and expanded digital solution offerings, such as becoming Japan's first SonarQube Gold Reseller Partner.

• Opened new development sites and implemented initiatives to enhance employee productivity and motivation.

• Net sales for the six months ended September 30, 2025, rose 8.6% year-over-year to ¥30,952 million, with operating profit up 4.3% to ¥2,720 million and ordinary profit up 3.8% to ¥2,867 million.

• Profit attributable to owners of parent increased 9.3% year-over-year to ¥2,054 million.

• Comprehensive income surged 75.2% year-over-year to ¥3,105 million, driven by significant gains in valuation of available-for-sale securities.

Financial highlights

• Net sales for the six months ended September 30, 2025, increased by 8.6% year-over-year, driven by digital solutions and new consolidations.

• Operating profit rose 4.3% year-over-year, while ordinary profit grew 3.8% year-over-year, partly offset by unprofitable projects and lower finance income.

• Gross profit increased to ¥5,981 million from ¥5,544 million year-over-year.

• Basic earnings per share for the period was ¥50.18, reflecting a 2-for-1 share split effective July 1, 2024.

• Total assets as of September 30, 2025, were ¥44,646 million, up from ¥43,336 million at the previous fiscal year-end.

Outlook and guidance

• No change to full-year consolidated earnings or dividend forecasts for FY ending March 31, 2026; net sales forecast at ¥64,000 million, operating profit at ¥7,000 million, and profit at ¥4,900 million.

• Profit attributable to owners of parent projected at ¥4,900 million, up 11.2% year-over-year, and basic EPS forecasted at ¥120.95.

• Dividend payout ratio to increase to 50% from FY3/2026, with a forecasted annual dividend of ¥58 per share.

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

• Annual dividend forecast raised to ¥58.00 per share.