WDB Holdings (2475) Q1 2027 earnings summary

Executive summary

• Sales for FY2026 1Q were ¥12,803 million, down 1.3% year-over-year, mainly due to lower CRO business volume.

• Gross margin declined by 1.1% year-over-year, reflecting reduced profitability in the CRO segment.

• Ordinary income dropped 11.1% year-over-year, impacted by lower gross margin and increased depreciation from the new head office.

• Net income attributable to owners was ¥684 million, a 20.4% decrease year-over-year, affected by lower ordinary income, increased depreciation, and extraordinary losses.

• Human resources segment saw modest growth, while CRO segment experienced double-digit declines in both sales and profit.

Financial highlights

• FY2026 1Q sales: ¥12,803 million (-1.3% YoY); gross margin: ¥2,998 million (-1.1% YoY); ordinary income: ¥1,190 million (-11.1% YoY); net income: ¥684 million (-20.4% YoY).

• Gross margin ratio remained stable at 23.4% YoY.

• Ordinary income ratio decreased by 1.0 point YoY to 9.3%; operating income margin was 9.2%, down from 10.2% in the prior year.

• Net income ratio decreased by 1.3 points YoY to 5.4%; net income per share was ¥35.71, compared to ¥43.83 in the prior year.

• Comprehensive income fell 20.3% year-over-year to ¥718 million.

Outlook and guidance

• FY2026 full-year sales forecast: ¥51,439 million (+2.3% YoY); gross margin: ¥12,178 million (+5.2% YoY); ordinary income: ¥4,663 million (+1.4% YoY); net income: ¥2,772 million (+0.6% YoY); EPS ¥144.50.

• No changes to consolidated financial forecasts and dividends for FY2026; dividend forecast for FY2026 is ¥94.00 per share.

• 1Q performance is progressing as planned.