ZENKOKU HOSHO (7164) Q1 2026 earnings summary

Executive summary

• Operating revenue rose 6.7% year-over-year to ¥11,481 million for the quarter ended June 30, 2025, driven by increased guarantee exposure, M&A contributions, and expansion in the guarantee business.

• Operating profit increased 5.0% year-over-year to ¥7,712 million, with credit-related expenses below expectations.

• Profit attributable to owners of parent rose 6.0% year-over-year to ¥5,999 million.

• The business environment saw gradual economic recovery in Japan, but new housing starts declined due to high prices, while used home sales and housing loan activity increased.

• Strategic focus included expanding the core guarantee business, entering related businesses, and enhancing corporate value through capital policy and human capital investments.

Financial highlights

• Operating revenue for Q1 FY2026/3 was ¥11,481 million, up from ¥10,761 million in Q1 FY2025/3.

• Operating profit reached ¥7,712 million, a 5.0% increase year-over-year.

• Ordinary profit increased 6.2% year-over-year to ¥8,652 million; comprehensive income rose 10.4% to ¥6,296 million.

• Profit attributable to owners of parent rose 6.0% year-over-year to ¥5,999 million.

• Shareholders' equity ratio was 47.8% as of June 30, 2025.

Outlook and guidance

• FY2026/3 operating revenue is forecast at ¥59,200 million, up 3.9% from the previous year.

• Operating profit is projected at ¥41,600 million, a slight decrease of 0.9% year-over-year.

• Ordinary profit is expected to rise 1.3% to ¥45,100 million.

• Profit attributable to owners of parent is forecast to decrease 2.8% to ¥31,200 million.

• Profit per share for the full year is projected at ¥232.29.