eGuarantee (8771) Q4 2025 earnings summary

Executive summary

• Net sales rose 11.6% year-over-year to ¥10,224 million, driven by new contracts and higher utilization.

• Ordinary profit increased 6.1% year-over-year, though profit growth lagged sales due to higher guarantee payments.

• Guarantee obligations reached ¥1,885.2 billion, up 33.4% year-over-year, reflecting increased bankruptcies and careful screening.

• Growth was supported by investments under the 'Accelerate 2028' plan, despite a challenging SME environment.

• Profit attributable to owners of parent rose 7.0% year-over-year to ¥3,491 million.

Financial highlights

• Net sales: ¥10,224 million (+11.6%); ordinary profit: ¥5,203 million (+6.1%); operating profit: ¥5,103 million (+5.2%).

• Profit attributable to owners of parent: ¥3,491 million (+7.0%).

• Guarantee outstanding: ¥1,885.2 billion (+33.4%).

• Total assets: ¥33,014 million (+9.6%); net assets: ¥26,391 million (+9.4%).

• Cash and cash equivalents at year-end: ¥11,215 million, up ¥2,971 million from prior year.

Outlook and guidance

• FY2026 forecast: net sales ¥11,300 million (+10.5%), ordinary profit ¥5,300 million (+1.9%), profit attributable to owners of parent ¥3,550 million (+1.7%).

• Dividend forecast for FY2026: ¥38.00 per share.

• Management targets to double new inquiries and contracts by FY2028, aiming for net sales of ¥20 billion and ordinary profit of ¥10 billion.

• Cost of sales ratio expected to rise due to higher reinsurance fees and continued investment in human capital.

• Basic EPS forecast for FY2026: ¥74.07.