Avant Group (3836) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY6/26 rose 10.9% year-over-year to ¥7,515 million, driven by strong demand in the Consolidated Financial Disclosure and Digital Transformation Promotion businesses.

• Operating profit increased 22.8% year-over-year to ¥1,341 million, with net income up 38.5% to ¥852 million.

• Growth was supported by robust investment in digital transformation among Japanese companies and effective cost management.

• Segment reclassification was implemented, now reporting Consolidated Financial Disclosure, Digital Transformation Promotion, Management Solutions, and Other.

Financial highlights

• Gross profit margin improved to 45.6% (up 1.5pts YoY), and operating profit margin reached 17.8% (up 1.7pts YoY), both the highest Q1 levels in five years.

• EBITDA for Q1 was ¥1,472 million, up 21.0% year-over-year, with an EBITDA margin of 19.6%.

• Equity ratio improved to 68.6% from 63.9% at the previous fiscal year-end.

• Cash flow from operations was negative ¥265 million, mainly due to bonus payments and income taxes, but improved by ¥282 million year-over-year.

• Diluted earnings per share rose to ¥23.34 from ¥16.87 in the prior year.

Outlook and guidance

• Full-year FY6/26 guidance maintained: net sales of ¥33,300 million (+18.0% YoY), operating profit of ¥5,100 million (+10.8% YoY), and net income of ¥3,500 million (+1.9% YoY).

• Year-end dividend forecast raised to ¥32 per share, targeting a DOE of 7.0% and aiming for 8% within the medium-term plan.

• Management expects continued growth investments, especially in software and R&D, despite macroeconomic uncertainties.