Daiei Kankyo (9336) Q2 2026 earnings summary

Executive summary

• Net sales for FY2026/3 2Q YTD rose 4.8% year-over-year to ¥39,976 million, driven by infrastructure project orders and market share expansion in the Kanto area.

• Operating profit declined 12.1% year-over-year to ¥8,932 million due to higher depreciation, labor, and outsourcing costs, but results were in line with initial plans.

• Profit attributable to owners of parent dropped 8.4% to ¥6,078 million.

• Governance was strengthened with six new executive officers appointed and three companies made consolidated subsidiaries in 2025.

• New facilities and business expansions included a plastic recycling facility and a new soil remediation plant.

Financial highlights

• Operating profit margin decreased by 4.3 points to 22.3% year-over-year.

• EBITDA fell 2.0% to ¥12,794 million, with EBITDA margin at 32.0%.

• Gross profit for the period was ¥16,778 million, with a gross margin of 42.0%.

• Cash and cash equivalents at period end increased by ¥21,654 million year-over-year to ¥61,929 million.

• Total assets increased 9.1% from March 31, 2025, to ¥201,703 million, and net assets rose 4.5% to ¥98,920 million.

Outlook and guidance

• Net sales and operating profit exceeded first half forecasts, with progress rates of 101.5% and 100.4% respectively.

• Full-year forecast for fiscal year ending March 31, 2026: net sales ¥83,900 million (+4.6% YoY), operating profit ¥21,800 million (+1.2%), profit attributable to owners of parent ¥14,400 million (+0.2%), and basic EPS ¥146.19.

• Full-year progress rates stand at 47.6% for net sales and 41.0% for operating profit.

• No revisions have been made to the previously announced earnings forecasts.

• M&A activity continues, with Sukarabesakure Co., Ltd. scheduled to become a consolidated subsidiary in November 2025.