Japan Elevator Service (6544) Q4 2026 earnings summary

Executive summary

• Achieved record-breaking results for the ninth consecutive year, with strong growth in maintenance, repair, and modernization services, and improved profitability despite extraordinary losses.

• Net sales rose 16.7% year-over-year to ¥57.6 billion, operating profit increased 27.7% to ¥11.0 billion, and net profit grew 32.4% to ¥7.3 billion for FY Mar 2026.

• Maintenance and repair services grew 13.0% YoY, while modernization services surged 25.8% YoY, reflecting strong demand and enhanced sales structure.

• Market share in domestic elevator maintenance contracts increased to 11%, with a net increase of 13,320 contracts, reaching 126,840 units.

• Dividend payout ratio increased to 51.2%, with a forecasted dividend of 21 yen per share, reflecting strong business growth.

Financial highlights

• Net sales: ¥57.6 billion (+16.7% YoY); operating profit: ¥11.0 billion (+27.7% YoY); net profit: ¥7.3 billion (+32.4% YoY).

• Operating profit margin improved to 19.1% from 17.5% YoY; ROE increased to 32.9% from 30.3%.

• EPS increased to 41.05 yen (+32.2% YoY, adjusted for stock split).

• Net assets per share rose to ¥137.54 from ¥112.07 YoY; equity ratio improved to 61.3%.

• Cash and cash equivalents at year-end increased to ¥3,859 million, up ¥1,795 million YoY.

Outlook and guidance

• FY Mar 2027 forecast: net sales ¥65.0 billion (+12.8% YoY), operating profit ¥13.0 billion (+18.1% YoY), net profit ¥8.2 billion (+12.0% YoY), EPS ¥45.87.

• Operating profit margin before amortization expected to exceed 20%.

• Maintenance contracts projected to continue growing, with market share expected to reach 12–13% by Mar 2027.

• The company aims for sustainable growth by improving maintenance quality and reviewing pricing systems.