Japan Elevator Service (6544) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 2025 rose 16.9% year-over-year to ¥41,546 million, with operating profit up 28.5% to ¥7,866 million and profit attributable to owners of parent up 28.9% to ¥5,032 million.

• Both maintenance & repair and modernization segments performed well, with modernization sales up 27.2% year-over-year.

• Sales and operating profit for the nine months ended December 2025 reached 74% of the full-year forecast.

• The economic environment in Japan showed moderate recovery, but uncertainty remains due to rising prices and increased cost-reduction needs among companies.

• Net increase in maintenance contracts was entirely organic, with 123,370 contracts at the end of December 2025.

Financial highlights

• Gross profit for the nine months ended December 2025 was ¥16,071 million, up from ¥13,549 million year-over-year.

• EPS for the period was ¥28.24, reflecting a two-for-one stock split and a 28.9% increase year-over-year.

• Comprehensive income for the nine months ended December 2025 was ¥5,102 million, up 26.4% year-over-year.

• Gross margins improved due to higher maintenance productivity and increased unit prices in modernization.

• Profit attributable to owners of parent was ¥5,032 million, up 28.9% year-over-year.

Outlook and guidance

• Full-year forecast for fiscal year ending March 2026 remains unchanged: net sales of ¥56,500 million, operating profit of ¥10,600 million, and profit attributable to owners of parent of ¥6,600 million.

• Earnings per share for the full year is forecast at ¥37.01, considering the stock split.

• Dividend forecast is ¥19 per share, with a payout ratio of 51.3%.

• Continued growth in maintenance contracts and modernization shipments expected, with OP margin before amortization targeted above 19%.