Honyaku Center (2483) Q1 2026 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2025, were ¥2,669 million, down 1.7% year-over-year, mainly due to weaker performance in the core Translation Business despite record-high results in the Interpretation Business.

• Operating income rose 22.3% year-over-year to ¥212 million, driven by cost reductions and lower selling, general, and administrative expenses.

• Ordinary income increased 24.8% year-over-year to ¥219 million, aided by higher equity-method profits and reduced foreign exchange losses.

• Net income attributable to shareholders was ¥142 million, up 26.8% year-over-year.

Financial highlights

• Gross profit for the quarter was ¥1,303 million, with a gross margin of 48.8%.

• Operating income margin improved to 8.0% from 6.4% in the prior year.

• Net income per share was ¥42.65, up from ¥33.69 year-over-year.

• Comprehensive income reached ¥142 million, a 17.6% increase year-over-year.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2026: net sales ¥11,400 million (+1.6%), operating income ¥900 million (+1.0%), ordinary income ¥920 million (+1.5%), net income ¥630 million (−12.9%).

• No changes to previously disclosed forecasts for the six-month and full-year periods.