JAFCO Group (8595) Q2 2026 earnings summary

Executive summary

• Market uncertainty increased, with domestic IPOs dropping to 19 from 34 year-over-year; only one IPO occurred during the period, leading to a significant decrease in capital gains compared to the previous year.

• Net sales for the six months ended September 30, 2025, were ¥11,917 million, down 25.5% year-over-year; operating income fell 53.2% to ¥3,005 million, and profit attributable to stockholders dropped 59.0% to ¥1,924 million.

• Capital gains from share sales totaled ¥4.4B (vs. ¥7.4B prior year); one IPO completed.

• Shift in investment focus to domestic market; Asian subsidiary transfer and US subsidiary sale underway.

• Shareholder returns enhanced via ¥5B buybacks and revised dividend policy; interim dividend set at ¥66.5, annual forecast at ¥133 minimum.

Financial highlights

• Total net sales for 1H FY26: ¥11.9B (80% of prior full-year); gross profit ¥6.3B (72%).

• Operating income ¥3.0B (48% of prior year); ordinary income ¥3.3B (49%).

• Ordinary income for the six months was ¥3,262 million, down 52.2% year-over-year.

• Comprehensive income rose to ¥3,268 million from ¥1,624 million a year earlier.

• Dividend per share forecast for the year ending March 31, 2026, is at least ¥133.00, based on a minimum 6% DOE or 50% payout ratio.

Outlook and guidance

• Annual dividend forecast at ¥133 minimum, with policy to pay the greater of 6% DOE or 50% payout ratio.

• No specific financial forecasts provided due to earnings volatility tied to market and IPO conditions; quarterly results will be disclosed in a timely manner.

• Transfer of Asian subsidiary and sale of US subsidiary to streamline operations and reduce necessary funds; transfer expected to positively impact FY2026 results.