ARE Holdings (5857) Q3 2026 earnings summary

Executive summary

• Q3 FY2026.3 revenue reached ¥384,655 million, up 3.1% year-over-year, with operating profit surging 95.0% to ¥28,640 million and net income rising 71.9% to ¥19,569 million, driven by higher precious metal prices and increased refining volumes, especially in North America.

• Full-year forecasts were revised upward, with operating profit expected to reach a record high, supported by robust trading and processing activities.

• The company emphasized stable performance tracking through collection volume as a primary KPI and maintained a strong focus on capital efficiency and shareholder returns.

• Total assets increased to ¥935,317 million, mainly due to higher receivables and inventories, while total equity rose to ¥160,903 million.

Financial highlights

• Q3 sales revenue rose to ¥384,655 million, up 11.7 billion yen YoY; operating profit doubled to ¥28,640 million; net income increased by ¥8.2 billion to ¥19,569 million.

• Precious metals recycling business operating profit surged by ¥14.0 billion YoY, while environmental preservation business posted a modest profit.

• Precious metal prices soared: gold +5,198 yen/g, palladium +911 yen/g, platinum +1,891 yen/g, rhodium +8,424 yen/g YoY.

• Basic earnings per share increased to ¥255.41 from ¥148.84 year-over-year.

• Comprehensive income soared to ¥42,088 million, up 152.8% year-over-year.

Outlook and guidance

• FY2026.3 sales revenue forecast revised to ¥585,000 million (+68.0 billion yen from previous), operating profit to ¥35,000 million (+5.0 billion yen), and net income to ¥23,900 million (+2.3 billion yen).

• Profit attributable to owners of parent forecast at ¥23,900 million (+66.9%), and basic EPS projected at ¥311.90.

• Dividend forecast raised to ¥125 per share for the year ending March 31, 2026, reflecting a 5-yen increase in the year-end dividend.

• Q4 outlook reflects higher hedging costs and silver lease rates, but ongoing initiatives aim to optimize metal mix and production efficiency.