Japan Elevator Service (6544) Q2 2026 earnings summary

Executive summary

• Achieved strong sales and profit growth in the first half of FY Mar 2026, with net sales up 15.7% to ¥26.9B and operating profit up 30.7% YoY, driven by robust maintenance, repair, and modernization demand.

• Maintenance and repair business net sales increased 13.9% YoY, while modernization business net sales grew 22% YoY.

• Raised full-year forecasts for sales, operating profit, and net income, reflecting continued contract growth and improved profitability.

• Dividend per share to increase to 19 yen, with a payout ratio of 51.3%, adjusted for a two-for-one stock split effective October 1, 2025.

Financial highlights

• Six-month net sales rose to ¥26.9B (+15.7% YoY), operating profit to ¥5.1B (+30.7% YoY), and net profit to ¥3.3B (+30.5% YoY).

• EPS for the interim period was ¥18.48 (+30.5% YoY, post-split basis).

• FY Mar 2026 revised forecasts: net sales ¥56.5B (+14.4% YoY), operating profit ¥10.6B (+22.9% YoY), net income ¥6.6B (+19.3% YoY), and EPS at ¥37.06.

• Operating profit margin before goodwill amortization improved by 2.1 points YoY to 19.6%.

• Comprehensive income for the interim period: ¥3.32B (+28.6% YoY).

Outlook and guidance

• Full-year guidance raised on the back of strong contract growth and improved margins; both sales and profits expected to reach record highs.

• Continued focus on productivity improvements, SG&A control, and expansion in maintenance and modernization.

• Dividend payout ratio target set at 40% or more, with actual forecast at 51.3%.

• Dividend forecast revised; details available in a separate notice.