Nippon Ski Resort Development Co (6040) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 was ¥1,360 million, down 6.4% year-over-year, with an operating loss of ¥317 million and net loss attributable to shareholders of ¥289 million, both significantly worse than the prior year.

• The quarter saw strong inbound tourism and successful new facility launches, but unfavorable weather during key weekends and a lack of real estate sales compared to the prior year led to lower sales and profit.

• The company continues to diversify its business to reduce seasonality risk, investing in green season attractions and expanding inbound and domestic customer bases.

Financial highlights

• Operating loss widened to ¥317 million from ¥64 million loss in Q1 FY2025; net loss attributable to shareholders increased to ¥289 million from ¥37 million loss year-over-year.

• Gross margin declined as depreciation expenses rose due to new gondola investments.

• Comprehensive loss for the quarter was ¥315 million, compared to ¥53 million loss in the prior year.

• EPS was negative ¥6.30, compared to negative ¥0.82 in the prior year, reflecting the stock split adjustment.

Outlook and guidance

• Full-year revenue is forecast at ¥11,480 million, up 9.7% year-over-year, with net income expected to rise to ¥2,470 million, driven by a one-time gain from land sales.

• No changes to previously announced guidance; management expects full-year results to be in line with last year, with real estate sales planned for Q4.

• Inbound visitor numbers are expected to continue growing, with over 400,000 forecast for the 2024-2025 winter season.