Daiei Kankyo (9336) investor relations material

Executive summary

• Net sales for FY2026/3 3Q YTD reached ¥62,536 million, up 6.1% year-over-year, driven by infrastructure projects and market share expansion, especially in the Kanto area.

• Operating profit declined 6.7% to ¥14,621 million due to increased costs, including labor and depreciation.

• Major M&A included making Sukarabesakure Co., Ltd. and KOUKI CORP. consolidated subsidiaries and KANAME KOGYO an equity-method affiliate.

• EBITDA rose 4.3% to ¥21,117 million, but EBITDA margin decreased to 33.8%.

• Released D-Plan 2028, a new medium-term management plan focused on growth through organic means and M&A.

Financial highlights

• Net sales increased 6.1% year-over-year to ¥62,536 million; operating profit fell 6.7% to ¥14,621 million.

• EBITDA rose 4.3% to ¥21,117 million; EBITDA margin decreased by 0.6pt to 33.8%.

• Profit attributable to owners of parent dropped 6.2% to ¥9,905 million; profit margin attributable to owners of parent was 15.8%.

• Gross profit increased to ¥26,375 million from ¥25,878 million year-over-year.

• Basic earnings per share for the period was ¥100.24, down from ¥106.89 year-over-year.

Outlook and guidance

• 3Q progress rates: net sales at 74.5% and operating profit at 67.1% of full-year forecasts.

• Full-year forecast: net sales ¥83,900 million, operating profit ¥21,800 million, EBITDA ¥31,200 million.

• Profit attributable to owners of parent expected at ¥14,400 million, with basic EPS of ¥146.19.

• No revisions to previously announced earnings forecasts.

• Waste-related business net sales and profit exceeded expectations due to increased demolition work orders, but higher costs impacted profit.