JK Holdings (9896) Q1 2026 earnings summary

Executive summary

• Achieved year-over-year increases in revenue and profit for Q1 FY2026, with revenue up 4.6% to ¥97,219 million and net income attributable to shareholders up 15.9% to ¥893 million.

• Wholesale and retail segments performed steadily despite challenging conditions and cost pressures, aided by M&A activity.

• Launched a new three-year mid-term plan focused on strengthening core businesses, expanding domains, and sustainable management.

• Ongoing efforts to improve underperforming plywood manufacturing and processing operations.

• Overcame effects of the previous "wood shock" to achieve growth.

Financial highlights

• Q1 FY2026 revenue: ¥97.2 billion, up 4.6% year-over-year.

• Operating profit increased to ¥1,451 million (up 5.5% YoY), recurring profit ¥1,629 million (up 6.2% YoY), and net income attributable to parent ¥0.8 billion (up 15.9% YoY).

• Comprehensive income was ¥967 million, a 30.1% increase year-over-year.

• Annual dividend forecast: ¥55 per share, up ¥10 from previous year (target payout ratio: 30%+).

• Gross margin maintained at 12.0% year-over-year.

Outlook and guidance

• FY2026 full-year revenue forecast: ¥405 billion (+3.0% YoY), operating profit ¥8.0 billion (+8.7% YoY), recurring profit ¥8.0 billion (+2.6% YoY), net income ¥5.0 billion (+16.7% YoY).

• No changes have been made to previously announced earnings guidance.

• Focus on expanding share in existing businesses, adjacent business expansion, and M&A-driven growth.

• Continued improvement of unprofitable businesses.