UT Group Co (2146) Q1 2026 earnings summary

Executive summary

• Achieved record-high quarterly consolidated net sales (excluding divested businesses), but reported a 5.5% year-over-year decline in net sales due to divestitures, while operating income rose 28.1% to ¥2,462 million and net income attributable to owners was ¥1,544 million, down 68.7% year-over-year due to the absence of prior-year extraordinary gains.

• Gross income margin improved year-over-year, driven by higher unit wages, increased operating hours, and divestiture of low-profitability businesses.

• The company launched its Fifth Medium-term Business Plan, focusing on human capital investment and segment reorganization.

Financial highlights

• 1Q FY3/2026 net sales: ¥41,756 million (+1.7% YoY, excluding divested businesses; -5.5% YoY overall).

• Gross income: ¥7,971 million (19.1% margin, +7.7% YoY).

• Operating income: ¥2,462 million (5.9% margin, +35.9% YoY).

• Net income attributable to owners: ¥1,544 million (+48.5% YoY, excluding special factors; -68.7% YoY overall).

• EPS: ¥39.67 (+51.5% YoY, excluding special factors; down from ¥124.12 YoY overall).

Outlook and guidance

• Full-year FY3/2026 forecasts unchanged; net sales projected at ¥196,200 million, operating income at ¥11,700 million, and EPS at ¥199.68.

• Domestic demand for workers expected to remain strong; focus on increasing employee numbers and service quality.

• Quarterly dividend payments based on a 100% payout ratio, with 1Q dividend at ¥40.19 per share.