Open Up Group (2154) Q4 2026 earnings summary

Executive summary

• Revenue declined 10.9% year-over-year to ¥167.48 billion, mainly due to the UK business exit, but continuing operations saw 4.3% revenue growth and solid profit growth amid business model transformation focused on mid-career professionals and higher value-added services.

• Operating profit rose 2.8% year-over-year to ¥16.70 billion, with a margin of 10.0%, driven by improved gross margins and cost management despite higher personnel and productivity investment costs.

• Net income attributable to owners of parent decreased 5.8% year-over-year to ¥11.83 billion, impacted by higher income tax expenses following a temporary tax benefit in the prior year.

• Segment restructuring split the former Machinery, Electronics and IT Software segment into separate Machinery and Electronics and IT segments.

• The company completed the first year of structural improvement initiatives, including sales organization restructuring and acquisitions.

Financial highlights

• FY2026 revenue was ¥167.48 billion, down 10.9% year-over-year due to the UK business exit; excluding this, revenue grew 4.3%.

• Operating profit was ¥16.70 billion (+2.8% YoY), with a margin of 10.0%. Net income was ¥11.83 billion (-5.8% YoY), margin 7.1%.

• Gross profit was ¥46.24 billion, margin 27.6%.

• Basic earnings per share was ¥138.91, down from ¥144.56 the previous year.

• Cash and cash equivalents at year-end increased to ¥23.19 billion.

Outlook and guidance

• FY2027 forecast: revenue ¥175.0 billion (+4.5%), operating profit ¥17.7 billion (+6.0%), net income ¥12.3 billion (+4.0%).

• All major segments are expected to see revenue and profit growth, with a focus on strengthening recruitment, retention, and productivity.

• Growth investments and profitability improvements will be balanced, with hiring volume and unit price expected to rise, and turnover rate to decline.

• Dividend per share is forecast to increase to ¥90.00.

• Segment guidance: M&E to maintain growth and profitability, IT to improve utilization and expand value-added projects, Construction to grow active engineers.