Sunwels (9229) Q2 2026 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 for the six months ended September 30, 2025, rose 2.4% year-over-year to ¥13,407 million, but the period saw an operating loss of ¥993 million and a net loss of ¥1,517 million, reversing profits from the prior year.

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

• Profitability declined due to initial costs from opening new facilities and compliance-related measures.

• The company revised its full-year forecast downward, now expecting a net loss of ¥2,281 million and negative EPS of ¥70.35.

Financial highlights

• Q2 FY26 sales were ¥6,802 million, below the initial forecast of ¥7,498 million.

• EBITDA for Q2 was ¥15 million, significantly under the forecasted ¥243 million.

• EBITDA for the six months was negative ¥110 million, down from ¥1,853 million a year earlier.

• Operating loss of ¥993 million and ordinary loss of ¥1,441 million for the six months, compared to operating profit of ¥1,237 million and ordinary profit of ¥867 million in the prior year.

• Cash and cash equivalents decreased by ¥1,372 million to ¥4,265 million at period end.

Outlook and guidance

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

• EBITDA and operating income projections also lowered, with profitability expected to recover as occupancy rates improve in the latter half.

• The company plans to open 13 new facilities nationwide in FY2026, expecting initial costs to weigh on short-term profitability but aiming for future profit contributions.

• No dividends are forecast for the fiscal year.

• Strategic focus on boosting occupancy through intensified sales, marketing, and operational improvements.