Cresco (4674) Q3 2026 earnings summary

Executive summary

• Achieved strong growth in net sales and profits for the nine months ended December 31, 2025, driven by robust demand for digital solutions and productivity improvement investments.

• Net sales rose 9.5% year-over-year to ¥47,202 million; operating profit increased 11.2% to ¥4,618 million.

• Profit attributable to owners of parent grew 22.4% year-over-year to ¥3,583 million, aided by a ¥460 million gain on sale of investment securities.

• Comprehensive income for the period was ¥4,962 million, up 32.0% year-over-year.

• Organizational restructuring, strategic acquisitions, and key partnerships, including generative AI adoption and industry-academia collaboration, supported business expansion.

Financial highlights

• Net sales increased by 9.5% year-over-year; operating profit rose by 11.2%, and ordinary profit by 10.6%.

• Gross profit for the nine months was ¥9,425 million, up from ¥8,505 million year-over-year.

• Extraordinary income surged to ¥545 million from ¥125 million year-over-year, mainly due to gains on sale of investment securities.

• New orders up 15.3% and outstanding orders up 28.9% year-over-year, reflecting strong demand.

• EPS increased following a 2-for-1 share split effective July 1, 2024.

Outlook and guidance

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

• Operating profit is projected at ¥7,000 million, up 17.0% year-over-year.

• Basic earnings per share for the full year is expected to be ¥121.29.

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

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