Sunwels (9229) Q2 2025 earnings summary

Executive summary

• Opened 6 new PD House facilities in Q2 FY March 2026, bringing total to 52 nationwide, focusing on specialized care for Parkinson's disease patients.

• Net sales rose 42.4% year-over-year to ¥13,087 million for the six months ended September 30, 2024, driven by facility expansion.

• Operating profit increased 36.5% to ¥1,237 million, while ordinary profit grew 30.0% to ¥867 million year-over-year.

• Net profit declined 27.7% to ¥242 million due to extraordinary losses and special investigation costs related to improper medical fee invoicing.

• Major operational overhaul and increased hiring (637 new hires in Q2) to address staff turnover and support expansion.

Financial highlights

• Q2 FY26 sales were ¥6,802 million, below the initial forecast of ¥7,498 million, reflecting a 90.7% achievement rate.

• EBITDA for the six-month period was ¥1,853 million, up 45.7% year-over-year.

• Year-over-year, sales increased by 2.4% to ¥13,407 million for the first half, but EBITDA and operating income declined due to new facility costs and lower profitability.

• Net income for Q2 was ¥791 million, down from the forecast and impacted by operational challenges.

• Earnings per share fell to ¥7.77 from ¥11.13 in the prior year period.

Outlook and guidance

• Full-year FY26 sales forecast revised downward to ¥28,844 million due to sluggish customer growth and temporary staffing shortages.

• Full-year net sales forecast is ¥26,741 million, up 33.0% year-over-year.

• Full-year operating profit is projected at ¥1,057 million (down 52.7%), with a net loss of ¥645 million expected due to extraordinary losses from investigation and refunds.

• EBITDA and operating income forecasts also revised down, with profitability expected to recover in the latter half as occupancy improves.

• Earnings forecast was revised following the investigation into improper medical fee invoicing.