Nippon Express (9147) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 revenues reached ¥1,356.6 billion, up 6.7% year-over-year, with consolidated segment income at ¥46.7 billion and operating profit up 56.7% to ¥44.8 billion; profit attributable to owners of parent surged 186.8% to ¥24.3 billion.

• Growth was driven by robust demand in air and ocean forwarding, price revisions, business restructuring, functional integration, and favorable yen depreciation, despite global economic uncertainty and rising logistics costs.

Financial highlights

• Q2 FY2026 business profit margin improved to 3.4% from 2.5% year-over-year, and operating margin rose to 3.3% from 2.2%.

• All profit metrics, including business profit and operating income, saw significant increases due to higher forwarding volumes, improved unit gross profit, and cost-cutting measures.

• Gross profit for the period was ¥113.7 billion, down 1.9% year-over-year, while net profit attributable to owners of parent surged 186.8% to ¥24.3 billion.

• Sequentially, Q2 revenues grew 8.0% over Q1, with business profit nearly doubling.

• Total assets as of June 30, 2026 were ¥2,357.7 billion, down 2.4% from December 31, 2025, mainly due to a decrease in cash and cash equivalents.

Outlook and guidance

• FY2026 full-year revenue forecast is ¥2,750.0 billion, up 6.8% year-over-year, with business profit projected at ¥95.0 billion (+44.0%), operating income at ¥120.0 billion (+133.1%), and profit attributable to owners of parent at ¥70.0 billion (+151.4%).

• ROE and ROIC targets are 8.5% and 5.3%, respectively.

• Forecasts were revised upward after strong H1 results, but H2 guidance was adjusted downward due to regulatory changes in Europe and anticipated early end to peak ocean forwarding demand.

• Forecast revision reflects anticipated recovery in international cargo, gains from real estate disposals, and continued strength in domestic logistics.