Nippon Ski Resort Development Co (6040) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 FY2026 rose 10% year-over-year to ¥5,450 million, driven by higher customer unit prices, increased visitors, and inbound demand, but fell short of plan.

• Operating profit declined 5% year-over-year to ¥1,025 million due to higher depreciation, labor, and promotional costs, but exceeded plan by 8%.

• Net income dropped 30% year-over-year to ¥538 million, impacted by impairment losses, increased tax expenses, and the absence of prior-year real estate sales.

• Inbound visitor numbers hit a record 282,000, up 26.3% year-over-year, while total winter season visitors rose 4.4% to 893,000.

• The NSD Kids Program expanded, with users rising to 49,000, up 2.3% year-over-year.

Financial highlights

• Winter season visitors reached a record 893,000, up 4% year-over-year and 21% above pre-pandemic levels.

• Gross profit margin declined as cost of sales and SG&A expenses increased, including higher depreciation and labor costs.

• Cash and equivalents decreased by ¥1,060 million to ¥2,395 million at period-end, mainly due to capital investments.

• Operating cash flow was ¥679 million, investment cash flow was negative ¥2,585 million, and financing cash flow was positive ¥845 million.

• Equity ratio declined to 53.9% due to increased fixed assets and borrowings for capital investments.

Outlook and guidance

• Full-year revenue is forecast at ¥11,480 million, up 9.7% year-over-year, with operating profit of ¥2,300 million (+2.4%).

• Net income is projected at ¥2,470 million (+55.7%), reflecting expected gains from land sales.

• Inbound visitor growth is expected to continue, with full-year inbound ratio projected to reach 25%.

• Ongoing investments in snowmaking and lift renewal aim to further differentiate resorts and support growth.

• Guidance maintains focus on maximizing capital efficiency, targeting ROIC around 10%.