SG Holdings (9143) Q2 2026 earnings summary

Executive summary

• Operating revenue for FY2026/3 Q2 was ¥782.5B, up 10.5% YoY, but 1.4% below plan; operating income was ¥38.5B, up 4.2% vs. plan but down 1.5% YoY; net income attributable to owners was ¥23.2B, up 10.7% vs. plan but down 8.8% YoY.

• Comprehensive income increased 23.6% YoY to ¥26.8B.

• Delivery and Logistics segments showed solid growth, while Global Logistics faced headwinds from U.S. tariffs, softening freight rates, and rising costs.

• The business environment remains challenging due to rising costs, labor shortages, and uncertainties in global logistics and domestic demand.

Financial highlights

• Operating revenue: ¥782.5B (+10.5% YoY); operating income: ¥38.5B (-1.5% YoY); net income: ¥23.2B (-8.8% YoY); basic net income per share: ¥38.44 (down from ¥40.76 YoY).

• Delivery Business revenue: ¥508.6B (+3.5% YoY); Logistics: ¥103.4B (+149.2% YoY); Global Logistics: ¥139.7B (+4.8% YoY).

• Operating margin decreased to 4.9% from 5.5% YoY.

• Cash flows from operating activities: ¥46.0B; free cash flow: -¥103.0B due to large investments.

• Comprehensive income: ¥26.8B (+23.6% YoY).

Outlook and guidance

• FY2026/3 full-year revenue forecast revised down to ¥1,635.0B (up 11% YoY); operating income unchanged at ¥92.0B (up 5% YoY).

• Net income forecast revised up to ¥59.0B (+2% YoY); ROE forecast at 10.5%.

• Dividend per share forecast at ¥53 (up ¥1 YoY).

• Segment forecasts revised: Delivery and Logistics income forecasts raised; Global Logistics revised down due to Expolanka's underperformance.