Daiwabo Holdings (3107) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025, rose 23.8% year-over-year to ¥1,001.2 billion, with operating income up 48.7% to ¥32.7 billion and profit attributable to owners of parent up 46.0% to ¥22.5 billion.

• Record highs in net sales and operating income were driven by strong demand in IT infrastructure and industrial machinery segments, with comprehensive income up 45.8% year-over-year to ¥23.9 billion.

• Growth was fueled by Windows 10 EOS replacement demand, the GIGA School 2nd phase, and above-plan PC shipments.

• Strategic initiatives included a capital and business alliance with BCC Co., Ltd. and a year-end dividend increase.

Financial highlights

• Consolidated net sales for 3Q rose 23.8% year-over-year to ¥1,001.2 billion, with a 74.9% progress rate toward the full-year forecast.

• Operating income increased 48.7% year-over-year to ¥32.7 billion, with a 3.3% margin and a 72.7% progress rate toward the full-year target.

• Gross profit for the nine months ended December 31, 2025, was ¥70.2 billion, up from ¥54.1 billion year-over-year.

• Basic earnings per share increased to ¥252.48 from ¥167.74 year-over-year.

• Total assets increased to ¥459.3 billion, and net assets to ¥160.7 billion, with an equity capital ratio of 35.0%.

Outlook and guidance

• Full-year forecast for fiscal year ending March 31, 2026: net sales of ¥1,337 billion (up 17.6% year-over-year), operating profit of ¥45 billion (up 28.9%), and profit attributable to owners of parent of ¥30.8 billion (up 24.4%).

• Basic earnings per share for the full year projected at ¥347.80.

• 4Q is expected to see continued strong PC shipments, with demand normalizing post-Windows 10 EOS and GIGA School deliveries peaking in 3Q.

• Operating profit margin is forecast to decline slightly in 4Q due to a higher share of GIGA School shipments, but net sales are expected to rise due to seasonal demand.