Daiei Kankyo (9336) Q1 2026 earnings summary

Executive summary

• Net sales for FY2026/3 1Q rose 3.4% year-on-year to ¥20,020 million, driven by infrastructure projects and resource recycling initiatives, despite higher costs and a challenging macroeconomic environment.

• Operating profit declined 16.4% year-on-year to ¥4,260 million due to increased labor, depreciation, and outsourcing costs, but results were in line with initial plans.

• Profit attributable to owners of parent fell 16.9% year-on-year to ¥2,906 million; EBITDA decreased 8.7% to ¥6,138 million.

• Three companies were made consolidated subsidiaries through M&A, and a new company was established, supporting business expansion.

• Released D-Plan 2028, a new medium-term management plan, and scheduled major facility completions in 2025.

Financial highlights

• EBITDA for 1Q was ¥6,138 million, down 8.7% year-on-year; EBITDA margin decreased by 4.0pt to 30.7%.

• Operating margin decreased to 21.3% from 26.3% year-on-year; gross profit for the quarter was ¥8,309 million, down from ¥8,748 million.

• Profit attributable to owners of parent fell 16.9% year-on-year to ¥2,906 million; profit margin dropped 3.6pt to 14.5%.

• Basic earnings per share for the quarter was ¥29.51, down from ¥35.28 year-on-year.

• Comprehensive income declined 32.6% year-on-year to ¥2,543 million.

Outlook and guidance

• Full-year net sales forecast is ¥83,900 million, with 1Q progress at 23.9%; operating profit forecast is ¥21,800 million, with 1Q progress at 19.5%.

• No changes to previously announced earnings forecasts; management cautions that actual results may differ due to future factors.

• Annual dividend forecast is ¥49.00 per share, up from ¥48.00 in the previous year; dividend payout ratio target remains at 33% or higher.

• Waste management and recycling expected to maintain strong performance; sports promotion business faces cost pressures.