Open Up Group (2154) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue declined 8.9% year-over-year, primarily due to the divestiture of the UK business, but profits increased 17.5% year-over-year, driven by higher gross profit and ongoing structural reforms.

• Revenue for the nine months ended March 31, 2026, declined 14.7% year-over-year to ¥125,269 million, mainly due to the sale of UK operations, partially offset by new subsidiaries.

• Excluding the UK business, revenue grew 4.9% and profit rose 13.0% year-over-year, reflecting successful structural reforms and M&A contributions.

• Gross profit decreased 4.4% year-over-year to ¥34,753 million, but gross margin improved by 3.0 points to 27.7%.

• Segment restructuring split the former Machinery, Electronics and IT Software Segment into Machinery and Electronics, and IT Segments.

Financial highlights

• Q3 FY2026 consolidated revenue was ¥41.70 billion, down 8.9% year-over-year; gross profit margin improved to 25.2%.

• Operating profit for Q3 FY2026 was ¥4.63 billion, up 17.5% year-over-year; net income reached ¥3.23 billion, up 13.4% year-over-year.

• Business profit grew 9.4% year-over-year to ¥13,473 million.

• Basic earnings per share rose to ¥113.96 from ¥100.55 year-over-year.

• Total assets at March 31, 2026, were ¥121,991 million, with equity attributable to owners of parent at ¥77,931 million (63.9% of total assets).

Outlook and guidance

• Full-year revenue forecast is ¥171.0 billion with a progress rate of 73.3%; operating profit forecast is ¥16.5 billion.

• Business profit is projected at ¥16,245 million (+3.9%), and profit attributable to owners of parent at ¥11,800 million (-6.0%).

• Annual dividend forecast is ¥85.00 per share, up from ¥75.00 in the previous year.

• FY2028 targets are set at ¥200 billion in revenue and ¥20 billion in operating profit.

• Structural reforms are ongoing, with further plans being formulated for the next fiscal year and beyond.