UT Group Co (2146) Q4 2026 earnings summary

Executive summary

• Net sales for FY3/2026 were ¥166.8 billion, nearly flat year-over-year when excluding the Vietnam Business sale, which caused a reported 14.3% decline.

• Operating income reached a record ¥10.6 billion, up 46.3% year-over-year, driven by improved gross margin and reduced SG&A expenses.

• Net income attributable to owners was ¥7.1 billion, down 20.6% due to the absence of prior-year extraordinary gains.

• A 15-for-1 stock split was executed effective January 1, 2026, and a quarterly dividend policy with a 100% payout ratio was introduced.

• Profitability improved through higher unit wages, optimized staff allocation, and lower recruitment and personnel costs.

Financial highlights

• Net sales: ¥166.8 billion (up 0.8% year-over-year, flat excluding Vietnam Business sale).

• Gross income: ¥31.9 billion (up 5.4% year-over-year).

• Operating income: ¥10.6 billion (up 46.3% year-over-year).

• Net income attributable to owners: ¥7.1 billion.

• EPS: ¥12.37 (down from ¥15.02 due to absence of extraordinary gains).

• Annual dividend: ¥12.25 per share, up ¥3.25 year-over-year.

Outlook and guidance

• FY3/2027 net sales forecast: ¥170.0 billion (+1.9% year-over-year).

• Operating income forecast: ¥10.0 billion (down 5.8% year-over-year due to higher stock-based compensation and SG&A expenses).

• Net income forecast: ¥6.1 billion (down 14.3% year-over-year).

• Annual dividend forecast for FY3/2027: ¥10.23 per share, maintaining a 100% payout ratio.

• Medium-term plan targets for FY3/2029: net sales of ¥185.0 billion, operating income of ¥15.0 billion, and 38,000 employees.