DIGITAL GRID (350A) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended April 30, 2026, rose to ¥5,107 million, up 34% QoQ and 6.6% YoY, with operating profit of ¥2,447 million, surpassing the full-year target at a 103.5% progress rate.

• Profit attributable to owners of parent reached ¥1,871 million, up 17.9% YoY and 126.8% of the full-year target.

• The business environment was marked by economic recovery in Japan, but also by global uncertainties, including inflation, geopolitical tensions, and energy price volatility.

• Upward revision of full-year forecast: net sales +5%, operating profit +20%, ordinary profit +25%, net income +30% versus initial guidance.

• Record-high contracted capacity of 1,367 MW (+33.9% YoY), driven by growth in both consumer and renewable generator segments.

Financial highlights

• Gross profit margin improved to 80.6% YTD (+8.2pt QoQ), with gross profit of ¥4,114 million.

• Ordinary profit increased 12.2% YoY to ¥2,551 million.

• Basic earnings per share for the nine months was ¥47.22, up from ¥40.70 YoY (adjusted for share splits).

• Total assets as of April 30, 2026, were ¥21,483 million, up from ¥17,818 million at the previous fiscal year-end.

• Net assets increased to ¥10,314 million, with an equity ratio of 48.0%.

Outlook and guidance

• Full-year forecast revised upward, reflecting strong performance in Power Platform, RE Platform, and Power Balancing (AS) businesses.

• Full-year net sales forecast revised to ¥6,595 million (up 7.2% YoY), operating profit to ¥2,836 million (up 3.4%), and profit attributable to owners of parent to ¥1,919 million (up 2.6%).

• Earnings per share for the full year projected at ¥48.00.

• Medium-term plan targets ROE >20%, operating margin >40%, and ¥10 billion investment in grid-scale batteries by FY28.

• Continued expansion into low-voltage corporate segment and nationwide customer base.