USS (4732) Q2 2026 earnings summary

Executive summary

• 1H FY2025 net sales rose 7.0% YoY to ¥53,979m, operating profit rose 9.4% to ¥28,709m, and profit attributable to owners of parent rose 10.0% to ¥19,951m.

• First-half net sales, operating profit, ordinary profit and profit attributable to owners of parent reached record highs.

• FY2025 operating profit forecast was raised to ¥57,400m; annual dividend forecast increased to ¥51.40 per share.

Financial highlights

• Gross profit margin improved to 63.4% from 62.2%; operating margin rose to 53.2% from 52.0%.

• Gross profit increased to ¥34,197m from ¥31,392m; basic EPS was ¥42.67, up from ¥37.75.

• Equity-to-asset ratio improved to 78.0% from 76.2% at March 31, 2025.

• Cash and cash equivalents declined to ¥79,719m; operating cash flow was ¥15,160m, while investing and financing activities used ¥13,058m and ¥27,102m.

Outlook and guidance

• FY2025 forecast: net sales ¥111,800m, operating profit ¥57,400m and profit attributable to owners of parent ¥39,650m; net sales forecast was maintained while operating profit was raised from ¥56,500m.

• FY2025 auction consignment forecast revised to 3.43m vehicles and contract forecast to 2.24m.

• Annual dividend forecast rose to ¥51.40 per share, the 26th consecutive annual increase; dividend payout ratio target is at least 60%.

• ROE target raised to at least 20%; total payout ratio target is at least 100% by FY2027.