SEIWA HOLDINGS (523A) Q3 2026 earnings summary

Executive summary

• Operates a business succession platform for manufacturing SMEs, acquiring companies lacking successors and driving value creation through integration and operational support.

• Revenue for the third quarter was ¥5,997 million, up 1.2% year-over-year, with operating profit rising 74.6% to ¥1,315 million and net profit attributable to owners increasing 129.8% to ¥876 million.

• Completed a business acquisition (Katsuyama Tosou Kogyo's cationic electrodeposition business) and sold a subsidiary (Blends) during the period.

• Focuses on consolidating management functions, enhancing profitability, and supporting long-term growth through disciplined M&A and proprietary management systems.

• Established a new overdraft and commitment line totaling ¥3,250 million, with some long-term borrowings repaid early.

Financial highlights

• Consolidated revenue reached 7,769 million JPY in FY2025 and 7,276 million JPY in Q3 FY2026, with record-high profits driven by value creation initiatives.

• Adjusted consolidated operating profit was 1,418 million JPY in FY2025 and 809 million JPY in Q3 FY2026; adjusted EBITDA was 1,652 million JPY in FY2025 and 814 million JPY in Q3 FY2026.

• Basic EPS for the quarter was ¥58.08, compared to ¥27.83 in the prior year.

• Total assets at quarter-end were ¥11,239 million, with equity attributable to owners at ¥1,786 million (15.9% ratio).

• 87.4% of net income target achieved as of Q3 FY2026, exceeding plan.

Outlook and guidance

• Investment capacity for M&A stands at 5.7–7.6 billion JPY, supported by 4.3 billion JPY raised at IPO.

• Near-term M&A to be funded by available cash and loans, with a disciplined approach targeting EV/EBITDA multiples of 5x or less.

• Net Debt/EBITDA expected to remain below 3–4x, with a net cash position anticipated post-listing.

• Full-year revenue is forecast at ¥7,779 million (+0.1% YoY), with operating profit of ¥1,553 million (+121.8%) and net profit attributable to owners of ¥1,002 million (+205.8%).

• No change to previously announced full-year guidance.