Japaniace (9558) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended May 31, 2026, increased 11.3% year-over-year to ¥6,469.8 million, driven by M&A, SES business acquisition, and robust IT and digital investment demand despite a challenging macro environment.

• Operating profit declined 35.6% year-over-year to ¥222.9 million, with ordinary profit and net profit also down 29.1% and 28.8%, respectively, due to one-time M&A costs, increased labor on large projects, and higher personnel costs.

• The company completed the acquisition of an IT staffing and SES business from Copro Technology, strengthening its digital talent base and future growth prospects.

• Efforts are underway to strengthen the business foundation and improve profitability to meet full-year forecasts.

Financial highlights

• Revenue: ¥6,469.8 million (+11.3% YoY); Operating profit: ¥222.9 million (−35.6% YoY); Ordinary profit: ¥292.4 million (−29.1% YoY); Net profit: ¥193.7 million (−28.8% YoY).

• Gross profit margin decreased to 20.9% from 25.0% YoY.

• EPS for the period was ¥48.86, down from ¥68.69 in the prior year.

• Cash and equivalents at period-end were ¥3,070.7 million, down ¥620.9 million from the previous year-end, mainly due to M&A outflows.

• M&A-related expenses totaled ¥82 million, impacting profit.

Outlook and guidance

• Full-year forecasts remain unchanged: Revenue ¥13,150 million (+8.8% YoY), Operating profit ¥1,035 million (+5.3% YoY), Net profit ¥785 million (+2.6% YoY).

• Dividend forecast is maintained at ¥101 per share for the full year.

• Additional labor on large projects is expected to subside, and measures are in place to shorten idle periods and improve profitability.