ONWARD Holdings (8016) Q4 2026 earnings summary

Executive summary

• FY2025 net sales rose 13.6% YoY to ¥236,804M; operating profit increased 14.3% to ¥11,604M and parent-attributable profit rose 18.5% to ¥10,094M, reaching the FY2026 net profit target one year early.

• EBITDA increased 11.3% to ¥17,195M; stronger brands, winter apparel, inventory management and streamlined advertising and SG&A supported profit growth.

• Overseas operations returned to aggregate operating profitability for the first time in 11 fiscal years, though the reported overseas segment recorded a ¥322M loss.

Financial highlights

• Gross profit increased to ¥129,415M; gross margin improved 0.2 points to 54.7%, while SG&A rose to ¥117,811M and its ratio eased 0.2 points to 49.8%.

• Recurring profit rose 10.8% to ¥11,176M; FY2025 results exceeded forecasts for sales, operating profit, net profit and EBITDA.

• Domestic group sales excluding the core apparel subsidiary and holding company rose 29.7% to ¥111.7bn, with operating profit up 25.0% to ¥6.8bn; overseas sales grew 5.5% to ¥23.0bn.

• Operating cash flow was ¥8,249M, investing cash flow ¥6,390M and financing cash flow an ¥8,644M outflow; cash and equivalents ended at ¥19,715M.

Outlook and guidance

• FY2026 forecast: net sales ¥247,000M (+4.3%), operating profit ¥12,800M (+10.3%), recurring profit ¥12,300M (+10.0%), parent-attributable profit ¥11,200M (+10.9%) and EBITDA ¥18,800M (+9.3%).

• Forecast gross margin is 54.7%; SG&A ratio is expected to decline 0.3 points to 49.5%, lifting operating margin 0.3 points to 5.2%.

• Overseas operations are forecast to be profitable in Europe, the U.S. and Asia; growth priorities include fashion, wellness and corporate design.

• FY2030 sales target remains ¥300bn: fashion ¥200bn, wellness ¥70bn and corporate design ¥30bn.