LogProstyle (LGPS) H2 2026 earnings summary

Executive summary

• Fiscal year 2026 revenue reached JPY 22.2 billion (US$140 million), up 7.6% year-on-year, marking the fourth consecutive year of revenue growth, driven by strong real estate and hotel segment performance.

• Gross margin expanded to 19.8%, the highest in three years, with gross profit rising 23.9% to JPY 4.41 billion.

• Operating income increased 17.1% to JPY 1.57 billion, while net income was essentially flat, up 0.8%, due to higher tax provisioning and increased interest expense.

• EPS declined 7.5% to JPY 32.16, reflecting a 9% increase in share count post-IPO and a higher tax charge.

• Initiated a recurring quarterly cash dividend, reflecting confidence in ongoing business performance.

Financial highlights

• Revenue increased 7.6% year-on-year to JPY 22.2 billion, with real estate revenue up 9.5% to JPY 20.6 billion and hotel revenue up 4.9% to JPY 1.31 billion.

• Gross margin improved by 260 basis points to 19.8%, and operating margin rose to 7.1% from 6.5% year-over-year.

• Adjusted EBITDA grew 10.6% to JPY 1.64 billion, with margin stable at 7.4%.

• Net income was JPY 760 million, up 0.8% year-on-year.

• Cash and cash equivalents at year-end were JPY 2,282 million, up from JPY 2,121 million.

Outlook and guidance

• Focus on scaling the hotel platform, with a new property in Asakusa expected to open in October 2028.

• Continued emphasis on capital recycling, gradual deleveraging, and sustainable growth in core businesses.

• Dividend growth signaled with FY2026 dividend of $0.046/share, paid in four installments through April 2027.