Japan Elevator Service (6544) Q4 2026 earnings summary

Executive summary

• Net sales rose 16.7% year-over-year to ¥57.6 billion, with operating profit up 27.7% to ¥11.0 billion and profit attributable to owners of parent up 32.4% to ¥7.3 billion.

• Achieved record highs in net increase of domestic maintenance contracts and modernization shipments for FY ended March 2026, with significant improvement in profit margins due to higher average modernization contract value.

• Maintenance and repair services grew 13.0% YoY, while modernization services surged 25.8% YoY, reflecting strong demand and enhanced sales structure.

• Sales and profits exceeded the upwardly revised earnings forecast, with both gross and operating profit margins improving year-over-year.

• The company forecasts further growth for FY2027, projecting net sales of ¥65.0 billion (+12.8% YoY) and profit attributable to owners of parent of ¥8.2 billion (+12.0% YoY).

Financial highlights

• Operating profit margin improved to 19.1% from 17.5% YoY; ROE increased to 32.9% from 30.3%.

• Net assets per share rose to ¥137.54 from ¥112.07 YoY; equity ratio improved to 61.3%.

• EPS increased to ¥41.05, up 32.2% year-over-year, adjusted for a 2-for-1 stock split.

• Free cash flow improved to ¥6.6 billion, with cash and cash equivalents rising to ¥4.2 billion.

• Dividend per share for FY2026 was ¥21 (post-split), with a payout ratio of 49.9%.

Outlook and guidance

• FY2027 guidance: net sales ¥65.0 billion (+12.8% YoY), operating profit ¥13.0 billion (+18.1% YoY), profit attributable to owners of parent ¥8.2 billion (+12.0% YoY), EPS ¥45.87.

• Operating profit margin before amortization expected to exceed 20%, with continued control of SG&A expenses and productivity gains.

• The company aims for sustainable growth by improving maintenance quality and reviewing pricing systems.

• All medium-term management plan targets are expected to be achieved.