SMS (2175) Q3 2026 earnings summary

Executive summary

• Achieved year-over-year growth in both sales and profits for Q3 FY03/26, marking the 22nd consecutive year of sales growth since establishment.

• Net sales for the nine months ended December 31, 2025, rose 5.5% year-over-year to ¥47,346 million, with operating profit up 8.7% and profit attributable to owners of parent up 21.2%.

• Growth was driven by expansion in the Career and Kaipoke Businesses, while Overseas Business saw a decline due to reduced marketing budgets and geopolitical concerns.

• Results tracked below plan due to delayed sales recovery, especially in Career and Overseas segments.

• Strategic investments and business recovery measures are being implemented to drive future growth.

Financial highlights

• Net sales for Q3 YTD FY03/26: ¥47,346 million, up 5.5% year-over-year.

• Operating income: ¥3,905 million, up 8.7% year-over-year.

• Ordinary income: ¥5,375 million, up 5% year-over-year.

• Net income: ¥4,660 million, up 21.2% year-over-year, driven by temporary tax benefits from overseas business reorganization.

• Basic earnings per share increased to ¥56.45 from ¥45.03 year-over-year.

Outlook and guidance

• Expect to achieve sales growth for the 22nd consecutive year.

• Full-year forecast for FY ending March 31, 2026: net sales ¥67,544 million (up 10.8% YoY), operating profit ¥7,287 million (up 15.0%), ordinary profit ¥9,468 million (up 13.3%), profit attributable to owners of parent ¥7,029 million (up 16.1%), and EPS ¥85.13.

• Strategic review and transformation underway following management transition in January 2026.

• Details of new growth roadmap to be announced at full-year results.

• Dividend forecast revised to ¥29.50 per share for the fiscal year ending March 31, 2026.