Ichigo (2337) Q1 2026 earnings summary

Executive summary

• All-in operating profit declined 20% and cash EPS fell 12% year-on-year, but strong stock earnings and anticipated flow earnings acceleration from Q2 support record full-year earnings guidance.

• Segment performance was mixed: Asset Management and Hotel segments saw significant profit growth, while Sustainable Real Estate and Ichigo Owners experienced declines, with the latter down 99% year-on-year.

• The company continues to emphasize sustainability, with ongoing ESG initiatives, a completed renewable energy transition, and recognition as a CDP 2024 Double A List company.

• Revenue for FY26/2 Q1 was JPY 12,487 million, down 50.2% year-over-year, with operating profit at JPY 3,468 million, a 17.8% decrease.

• Net income declined 35.1% year-over-year to JPY 2,331 million, and comprehensive income fell 30.7% to JPY 2,962 million.

Financial highlights

• All-in operating profit for Q1 FY26/2 was JPY 4,695 million, down 20.2% year-over-year; cash EPS declined 11.5% to JPY 9.05.

• Stock earnings rose 12% year-over-year, while flow earnings fell 45% but are expected to recover with asset sales in later quarters.

• Full-year all-in operating profit is projected at JPY 28,400 million (+14.2% year-over-year) and net income at JPY 16,000 million (+5.4%).

• Hotels segment all-in operating profit up 47% year-over-year; RevPAR up 27% year-over-year.

• EPS (basic) was JPY 5.52, down 32.6% year-over-year.

Outlook and guidance

• On track for record full-year earnings, with significant uplift in flow earnings expected from Q2 onward.

• Full-year FY26/2 operating profit forecast is JPY 19,500 million (+19.6% year-over-year), with net income projected at JPY 16,000 million (+5.4%).

• Dividend forecast raised 10% year-over-year to JPY 11.5, marking four consecutive years of increases.

• Battery storage business to commence operations in FY27/2 Q1, expanding the clean energy portfolio.

• Asset sales and security token transactions expected to accelerate in the coming quarters.