NIPPON KANZAI Holdings Co (9347) Q2 2026 earnings summary

Executive summary

• Achieved strong growth in the first half of FY26, with net sales up 9.5% year-over-year to ¥71,555 million, driven by contract renewals, Expo 2025 Osaka-related services, price revisions, and operational efficiency improvements.

• Operating profit increased 24.5% year-over-year to ¥4,643 million, and profit attributable to owners of parent surged 62.5% to ¥3,703 million, despite higher personnel expenses.

• Maintained a stable, stock-based business model with recurring revenues, resilient to macroeconomic fluctuations and adverse global events.

• Continued expansion through M&A, digital transformation, and overseas development, with a focus on public-private partnerships and comprehensive management services.

• The business environment remains challenging due to high raw material costs and rising personnel expenses, but operational efficiency and fee revisions supported profit growth.

Financial highlights

• Net sales: ¥71,555 million (+9.5% YoY); operating profit: ¥4,643 million (+24.5% YoY); ordinary profit: ¥5,733 million (+37.7% YoY); profit attributable to owners of parent: ¥3,703 million (+62.5% YoY).

• Gross profit margin improved to 29.3%; operating profit margin rose to 6.5%.

• Gross profit increased to ¥20,978 million from ¥18,590 million year-over-year.

• Basic earnings per share increased to ¥101.96 from ¥61.19 year-over-year.

• Comprehensive income declined 23.1% year-over-year to ¥3,273 million.

Outlook and guidance

• Full-year FY26 net sales forecast at ¥148,000 million (+5.8% YoY), with operating profit projected at ¥8,700 million (+0.2% YoY), ordinary profit at ¥9,300 million (+2.3% YoY), and profit attributable to owners of parent at ¥6,100 million (+4.6% YoY).

• Dividend forecast for FY26 is ¥54 per share, maintaining a payout ratio of 32.2%.

• No change to initial full-year guidance, reflecting confidence in business fundamentals despite market risks.