Kanamoto (9678) Q1 2026 earnings summary

Executive summary

• Net sales rose 2.8% year-over-year to ¥55,174 million for Q1 FY2026, with operating profit up 13.9% and profit attributable to owners up 14.4%.

• Profit growth was achieved despite higher personnel costs from a prior base pay increase, supported by improved equipment utilization, investment efficiency, cost management, and rental price optimization.

• Construction equipment rental demand remained firm, driven by disaster prevention, infrastructure renewal, and large-scale development projects, while used equipment sales declined 21.0% as planned.

• Other businesses saw a 6.8% decline in net sales but a 45.1% increase in operating profit, with strong performance in information products rental, welfare-related, and steel segments.

Financial highlights

• Q1 FY2026 net sales: ¥55,174 million, up 2.8% year-over-year; operating profit: ¥5,689 million, up 13.9%; ordinary profit: ¥5,964 million, up 14.4%.

• Profit attributable to owners: ¥3,706 million, up 14.4% year-over-year; EPS: ¥106.74, up from ¥91.77.

• Comprehensive income rose to ¥5,947 million from ¥3,826 million year-over-year.

• Dividend per share projected to increase to ¥100.00 for FY2026, up from ¥95.00 in FY2025.

• Minimal impact from interest rate and foreign exchange fluctuations.

Outlook and guidance

• FY2026 projected net sales: ¥221,000 million, up 3.6% from FY2025; projected operating profit: ¥18,700 million, up 7.7%; ordinary profit: ¥18,900 million, up 5.3%; EPS: ¥331.78.

• Profit attributable to owners projected at ¥11,400 million.

• Construction investment in Japan expected to rise to ¥81 trillion in FY2026, supporting steady rental demand.

• No changes to previously announced forecasts; management notes ongoing economic recovery but highlights uncertainties from price hikes, FX volatility, and geopolitical risks.

• Continued growth investments and strategic capital allocation planned.