ZERO (9028) Q1 2026 earnings summary

Executive summary

• Revenue increased by 3.3% year-over-year to ¥35,453 million in Q1 FY2026.

• Operating profit declined by 7.9% to ¥2,510 million, with margin down 0.8pts to 7.1%, due to higher labor and system costs.

• Net income attributable to owners fell by 7.4% to ¥1,747 million.

• Comprehensive income increased 17.9% year-over-year to ¥2,046 million, driven by improved other comprehensive income.

• The domestic new vehicle market weakened, but used car and export markets remained robust, supporting overall revenue growth.

Financial highlights

• Gross profit was stable at ¥5,216 million, while SG&A expenses increased to ¥2,761 million.

• Basic earnings per share decreased to ¥103.10 from ¥111.55 year-over-year.

• Pre-tax profit was ¥2,516 million (down ¥199 million year-over-year).

• Cash and cash equivalents at quarter-end were ¥14,653 million, down ¥1,990 million from the previous year-end.

• Total assets decreased by 3.3% to ¥71,541 million, and total equity rose 1.0% to ¥43,970 million.

Outlook and guidance

• Full-year revenue forecast maintained at ¥145,000 million, a 1.9% decrease year-over-year.

• Operating profit forecast at ¥10,300 million, up 0.7% year-over-year.

• Net income forecast at ¥7,200 million, up 0.3% year-over-year, with basic EPS of ¥425.11.

• Annual dividend forecast at ¥140.30 per share, payout ratio 33.0%.

• No revisions have been made to the previously announced earnings forecast.