SG Holdings (9143) Q1 2026 earnings summary

Executive summary

• Q1 FY2026/3 consolidated results progressed as planned, with income slightly above plan despite a YoY decrease due to upfront costs in Delivery Business.

• Operating revenues rose 9.8% YoY to ¥367.4B, but net income attributable to owners fell 18.2% to ¥10.1B for the quarter ended June 30, 2025.

• Operating income declined 10.5% YoY to ¥17.4B, and comprehensive income dropped 44.2% YoY to ¥9.1B.

• Delivery saw a positive YoY package trend from June; BtoB recovering, BtoC still down, but average unit price increased.

• Logistics and Global Logistics outperformed expectations, with Global Logistics turning a planned deficit into a profit.

Financial highlights

• Q1 FY2026/3 operating revenue ¥367.4B (+9.8% YoY), operating income ¥17.4B (-10.5% YoY), net income ¥10.1B (-18.2% YoY).

• Basic net income per share was ¥16.69, down from ¥19.83 YoY.

• Total assets increased to ¥1,153.6B, up ¥113.0B from March 31, 2025, mainly due to the Morrison acquisition.

• Equity ratio decreased to 45.3% from 55.8% YoY.

• Cash flows from operating activities ¥30.2B; investing activities outflow ¥133.9B, mainly due to Morrison acquisition.

Outlook and guidance

• Full-year FY2026/3 operating revenue forecast revised upward to ¥1,653.0B (+12% YoY); operating income to ¥92.0B (+5% YoY).

• Morrison's results to be consolidated from Q2; net income forecast unchanged at ¥57.0B.

• Dividend per share raised by ¥1 to ¥53.

• Segment forecasts: Global Logistics revenue revised up by 10% to ¥340B; Logistics revised down by 3.3%.

• Guidance incorporates extraordinary loss from RUNBOW equity transfer but expects no major impact on net income.