JK Holdings (9896) Q3 2026 earnings summary

Executive summary

• Revenue increased 1.4% year-over-year to ¥300.8 billion, but all profit levels declined due to higher costs and weak demand, with progress toward full-year targets.

• Mainstay wholesale business drove revenue growth, supported by prior M&A, but rising SG&A costs led to profit decline.

• Manufacturing segment reduced losses through restructuring and improvement efforts.

• The company launched a new three-year mid-term plan focused on strengthening core businesses, expanding business domains, and capital efficiency.

Financial highlights

• Consolidated revenue for Q3 was ¥300.8 billion, up 1.4% year-over-year.

• Recurring profit was ¥5.9 billion, down 8.0% year-over-year; operating income fell 10.1% to ¥5.48 billion.

• Net income attributable to shareholders was ¥3.37 billion, down 11.4% year-over-year.

• Interim dividend per share was ¥25, with a year-end forecast of ¥30; annual dividend forecast raised to ¥55 per share.

• Gross margin improved to 12.0% from 11.9% year-over-year; gross profit rose to ¥36.0 billion.

Outlook and guidance

• Full-year forecast expects revenue of ¥405 billion (+3.0%), recurring and operating profit of ¥8.0 billion (+2.6%), and net income of ¥5.0 billion (+16.7%).

• Annual dividend forecast raised to ¥55 per share, targeting a payout ratio of 30% or higher.

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