Honyaku Center (2483) Q4 2026 earnings summary

Executive summary

• FY2026 revenue fell 3.0% to ¥10,871m; operating profit declined 20.7% to ¥705m and net income fell 36.1% to ¥462m.

• Translation weakness weighed on results, while Interpretation revenue rose 11.4% to a record ¥1,323m.

• FY2027 guidance forecasts growth; FY2028 midterm targets and the ROE target were revised downward.

Financial highlights

• Gross profit was ¥5,153m, down 3.0%; gross margin held at 47.4%, while SG&A rose 0.5% to ¥4,447m.

• Ordinary profit was ¥748m, down 17.3%; net income attributable to owners of the parent was ¥462m, down 36.1%.

• Revenue reached 95.4% of the full-year plan; operating profit achieved 78.4%.

• Net income per share was ¥137.79; comprehensive income was ¥501m, down 29.6%.

Outlook and guidance

• FY2027 forecast: revenue ¥11,300m (+3.9%), operating profit ¥750m (+6.2%), ordinary profit ¥780m (+4.1%) and net income ¥500m (+8.1%).

• FY2028 midterm targets revised to revenue ¥11,700m, operating profit ¥900m and net income ¥600m, 10.0%, 25.0% and 25.0% below original targets.

• FY2028 ROE target lowered from at least 10% to at least 8%; profitability is expected to remain below the prior target near term, with a medium-term aim to exceed cost of capital.

• Priorities include expanding the customer base and enhancing services through AI and specialized language assets.