Daiwabo Holdings (3107) Q1 2026 earnings summary

Executive summary

• Achieved record-high 1Q sales and operating income, driven by strong demand for Windows 10 PC replacements and GIGA School projects.

• Net sales rose 27.5% year-over-year to ¥290.6 billion, with operating income up 131.1% to ¥9.88 billion.

• Upward revision of full-year and 2Q forecasts due to continued robust demand in IT infrastructure and education sectors.

• Announced acquisition of treasury shares up to ¥8 billion and maintained focus on shareholder returns.

• Comprehensive income increased 84.0% year-over-year to ¥6.96 billion.

Financial highlights

• 1Q net sales rose 27.5% year-over-year to ¥290.6 billion, with operating income up 131.1% to ¥9.88 billion.

• Ordinary income increased 123.3% year-over-year to ¥10.1 billion; net income attributable to owners of parent up 133.7% to ¥7.2 billion.

• Gross profit margin improved to 7.6% (+1.1% YoY), offsetting higher SG&A expenses.

• 1Q earnings per share reached ¥80.19, up from ¥33.06 a year earlier.

• Net assets increased to ¥154.6 billion from ¥152.3 billion at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast revised upward to ¥1,280 billion (+12.6% YoY), with operating income projected at ¥43.53 billion (+24.7% YoY).

• Profit attributable to owners of parent is forecast at ¥30.1 billion, up 21.6% YoY, with basic EPS expected at ¥335.73.

• 2Q cumulative net sales forecast raised to ¥640 billion (+23.7% YoY), with operating income at ¥21.9 billion (+62.0% YoY).

• Interim and year-end dividends forecast at ¥50 per share each, totaling ¥100 per share for FY2026.

• No change in earnings forecasts for the second half; demand for PC upgrades expected to peak before Windows 10 support ends in October.