Nippon Express (9147) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2026, rose 6.7% year-over-year to ¥1,356.6 billion, with consolidated segment income at ¥46.7 billion, a 47.5% increase, and operating profit up 56.7% to ¥44.8 billion.

• Interim profit attributable to owners of parent surged 186.8% to ¥24.3 billion, driven by robust demand in air and ocean forwarding, especially for semiconductor and AI-related products, and yen depreciation contributing approximately ¥50 billion to revenue growth.

• Growth was supported by price revisions, business restructuring, functional integration, and strong cross-border e-commerce, despite global economic uncertainty and rising logistics costs.

• Consolidated operating profit and below exceeded expectations announced in May, with interim profits surpassing expectations despite a decrease in dividends received.

Financial highlights

• Gross profit for the period was ¥113.7 billion, down 1.9% year-over-year, while operating profit increased to ¥44.8 billion, up 56.7%.

• Q2 FY2026 business profit margin improved to 3.4% from 2.5% year-over-year.

• Land sales for the period totaled JPY 4.3 billion, with gains on sales at JPY 2.5 billion.

• 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.

• Cash and cash equivalents at period end were ¥223.5 billion, down ¥59.9 billion from the previous fiscal year end.

Outlook and guidance

• Full-year revenue forecast revised upward to ¥2,750.0 billion (+6.8% year-over-year), with operating income forecast at ¥120.0 billion and profit attributable to owners of parent at ¥70.0 billion (+151.4%).

• 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.

• Metro Supply Chain acquisition not yet included in current forecast.