Daiwabo Holdings (3107) Q4 2026 earnings summary

Executive summary

• Achieved record-high consolidated net sales of ¥1,350,879 million (+18.8% YoY) and operating income of ¥44,169 million (+26.6% YoY) for FY ended March 2026, driven by strong IT Infrastructure Distribution and Industrial Machinery segments.

• ROE reached 19.9% and ROIC 16.9%, both exceeding medium-term plan targets.

• EPS rose to ¥362.07, up ¥90.7 from the previous year.

• Cash flows from operating activities rose to ¥14,569 million (+¥8,659 YoY), though cash and cash equivalents at year-end decreased to ¥43,852 million.

• Entered a capital and business alliance with BCC Co., Ltd. to expand business.

Financial highlights

• Net sales: ¥1,350,879 million (+18.8% YoY); Operating income: ¥44,169 million (+26.6% YoY); Ordinary income: ¥44,943 million (+26.8% YoY); Net income attributable to owners: ¥32,030 million (+29.4% YoY).

• Operating profit margin improved to 3.3% from 3.1% YoY.

• Book value per share increased to ¥1,954.00 (+¥260.76 YoY).

• Gross profit increased to ¥94,628 million.

• Equity-to-asset ratio increased to 36.8% from 34.6% YoY.

Outlook and guidance

• FY March 2027 forecast: Net sales ¥1,189,000 million (-12.0% YoY), operating income ¥36,500 million (-17.4% YoY), EPS ¥291.09 (-19.6% YoY), and net income to fall 21.0%.

• Anticipates pullback from special PC demand (Windows 10 EOS, GIGA School), and impact from rising memory prices.

• Focus on expanding recurring revenue, cloud, and managed services, and strengthening sales partner relationships.