NIPPON KANZAI Holdings Co (9347) Q4 2026 earnings summary

Executive summary

• Net sales reached a record ¥150,258 million for FY26, up 7.4% year-over-year, driven by steady contract renewals, new business from EXPO 2025 Osaka, and services for Expo 2025 Osaka, Kansai.

• Operating profit rose slightly to ¥8,686 million (+0.1% YoY), while ordinary profit surged 15.5% to ¥10,507 million.

• Profit attributable to owners of parent increased 22.1% YoY to ¥7,119 million, aided by lower investment losses, reversal of litigation losses, and improved operational efficiency.

• Continued expansion through M&A, especially in overseas residential management markets in the US, Germany, and Australia.

Financial highlights

• Net sales: ¥150,258 million (+7.4% YoY); operating profit: ¥8,686 million (+0.1% YoY); ordinary profit: ¥10,507 million (+15.5% YoY); profit attributable to owners: ¥7,119 million (+22.1% YoY).

• Gross profit margin improved to 28.9%; gross profit grew from ¥39,589 million to ¥43,426 million YoY.

• Free cash flow increased to ¥7,728 million, up ¥4,221 million YoY; cash and cash equivalents at year-end rose to ¥36,299 million, up 10.1%.

• Equity ratio rose to 69.9% (+3.7pp YoY), up from 66.2% YoY.

• Basic earnings per share increased from ¥157.62 to ¥196.03.

Outlook and guidance

• FY27 forecast: Net sales of ¥158,000 million (+5.2% YoY), operating profit of ¥9,000 million (+3.6% YoY), ordinary profit of ¥10,800 million (+2.8% YoY), profit attributable to owners of ¥7,300 million (+2.5% YoY).

• Dividend forecast for FY27: ¥60 per share (¥30 interim, ¥30 year-end), up from ¥57 in FY26.

• Continued focus on profit growth through business expansion, cost improvements, digital transformation, and expansion of PFI and public facility management.