Kanamoto (9678) Q3 2026 earnings summary

Executive summary

• Achieved record cumulative third-quarter net sales and operating profit, driven by improved equipment utilization, cost controls, and optimized rental pricing, with profitability strengthening year-over-year.

• Net sales for the nine months ended July 31, 2026, rose 2.6% year-over-year to ¥162,923 million, with operating profit up 31.6% to ¥15,440 million and profit attributable to owners of parent up 39.1% to ¥10,063 million.

• The core Construction Equipment Rental Division saw strong demand, especially from public investment and private sector logistics/data centers, driving segment growth.

• The company is executing its Medium-Term Management Plan "Progress 65" focusing on growth, DX strategies, and sustainability.

• Construction-related demand remained robust due to public and private investment, while other businesses saw profit growth despite lower sales.

Financial highlights

• Q3 FY2026 net sales: ¥162,923 million (up 2.6% YoY); operating profit: ¥15,440 million (up 31.6% YoY); ordinary profit: ¥15,779 million (up 31.1% YoY); profit attributable to owners: ¥10,063 million (up 39.1% YoY); EPS: ¥292.22.

• Operating profit margin improved significantly, with operating profit up 31.6% year-over-year.

• Comprehensive income increased to ¥14,559 million from ¥8,122 million year-over-year.

• Total assets increased to ¥332,053 million, and net assets to ¥164,815 million as of July 31, 2026.

• EBITDA for Q3 FY2026 showed continued growth, reflecting operational improvements.

Outlook and guidance

• FY2026 full-year forecast: net sales ¥221,000 million (up 3.6% YoY), operating profit ¥20,400 million (up 17.4%), ordinary profit ¥20,700 million (up 15.3%), profit attributable to owners ¥12,900 million (up 17.5%), EPS ¥376.23.

• No changes to previously announced full-year guidance.

• Construction equipment rental demand expected to remain firm, supported by steady public and private sector investment, though labor shortages and inflation may limit rapid growth.

• Projected full-year dividend is ¥110.00 per share, up from ¥95.00 in the prior year.