Japan Elevator Service (6544) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2026 rose 16.4% year-over-year to ¥13,433 million, with operating profit up 30.2% and profit attributable to owners of parent up 28.0%.

• Maintenance and repair business net sales increased 14.4% YoY; modernization business net sales grew 23.3% YoY.

• Gross and operating margins improved significantly, driven by higher engineer productivity and increased unit prices in modernization.

• The company is focusing on productivity improvements, contract growth, and strengthening its sales and operational structure.

• Announced a 2-for-1 stock split effective October 1, with September 30 as the record date.

Financial highlights

• Operating profit for Q1 FY2026 was ¥2,505 million, up 30.2% YoY; operating margin reached 18.6%.

• Profit attributable to owners of parent was ¥1,608 million, up 28.0% YoY; EPS was ¥18.06, up from ¥14.11 YoY.

• Gross profit margin improved, with gross profit at ¥5,298 million versus ¥4,413 million YoY.

• Comprehensive income for Q1 FY2026 was ¥1,607 million, up 25.6% YoY.

• Gross margin and OP margin before goodwill amortization reached record levels.

Outlook and guidance

• Full-year FY2026 guidance maintained: net sales ¥55,000 million (+11.4% YoY), operating profit ¥10,000 million (+15.9%), profit attributable to owners of parent ¥6,000 million (+8.5%).

• EPS forecast for FY2026 is ¥33.69, reflecting a 2-for-1 stock split; without the split, EPS would be ¥67.37.

• Both sales and profits expected to reach new highs, with continued growth in maintenance contracts and modernization.

• Capital expenditures and depreciation forecasts unchanged; CAPEX expected to decline after FY2023 peak.