UT Group Co (2146) Q2 2026 earnings summary

Executive summary

• Operating income and gross margin improved year-over-year, driven by higher unit wages, increased operating hours, and organizational integration, despite a decline in sales due to the sale of the Vietnam Business.

• Sales excluding divested businesses reached a record high for the first half, with profitability measures advancing.

• Net sales for the first nine months of FY3/2026 were ¥125,329 million, down 8.4% year-over-year due to the sale of the Vietnam Business, but sales excluding this impact were flat year-over-year.

• Operating income rose 22.8% to ¥8,084 million, and ordinary income increased 21.1% to ¥8,168 million, driven by improved hiring methods and gross margin.

• Net income attributable to owners fell 35.5% to ¥5,366 million, reflecting the absence of prior-year extraordinary gains from subsidiary sales.

Financial highlights

• Net sales for 2Q FY3/2026 were ¥83,295 million, up 1.4% year-over-year, with gross income at ¥15,919 million (up 8.4%).

• Operating income rose 46.6% year-over-year to ¥4,937 million, and EBITDA increased 32.7% to ¥5,828 million.

• EPS was ¥84.17, up 37.4% from the previous year, excluding extraordinary gains from prior business sales.

• Net income attributable to owners was ¥3,249 million, up 33.3% year-over-year.

• Net sales: ¥125,329 million (down 8.4% year-over-year); operating income: ¥8,084 million (up 22.8%); ordinary income: ¥8,168 million (up 21.1%); net income: ¥5,366 million (down 35.5%).

Outlook and guidance

• Revised FY3/2026 forecasts expect net sales of ¥168,000 million, gross income of ¥31,400 million, and operating income of ¥9,500 million, reflecting downward revisions due to hiring difficulties and stagnant demand in Motor & Energy.

• Operating margin is expected to remain in line with the initial plan despite lower sales.

• Dividend per share is forecast at ¥10 (post-split), with a 100% payout policy maintained.

• Earnings per share forecast: ¥10.60, or ¥159.02 if the stock split is not considered.

• No change to previously announced full-year guidance.