USS (4732) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 net sales reached ¥27,389 million, up 6.8% year-over-year, with operating profit at ¥14,708 million, up 9.4%, and profit attributable to owners of parent up 10.6% to ¥10,232 million.

• Record-high sales, operating profit, ordinary profit, and profit attributable to owners of parent were achieved.

• Comprehensive income increased 10.9% year-over-year to ¥10,344 million.

• The FY2025 plan was revised upward due to stronger-than-expected Q1 results, with operating profit forecast increased to ¥56.5 billion.

Financial highlights

• Gross profit increased to ¥17,374 million from ¥15,997 million year-over-year, with gross profit margin improving to 63.4% in Q1 FY2025 from 62.4% in Q1 FY2024.

• Operating margin rose to 53.7% from 52.4% year-over-year.

• Ordinary profit reached ¥14,870 million, up from ¥13,620 million year-over-year.

• Basic earnings per share for the quarter were ¥21.73, up from ¥19.26 in the prior year.

• Equity ratio stood at 76.5% at the end of Q1 FY2025.

Outlook and guidance

• FY2025 net sales forecast remains at ¥111.8 billion, with operating profit revised up to ¥56.5 billion, 1.3% higher than the initial forecast.

• Full-year profit attributable to owners of parent forecast at ¥38,850 million, up 3.2% year-over-year.

• Dividend forecast raised to ¥50.4, marking 26 consecutive years of dividend increases.

• Total payout ratio policy set at at least 100% by FY2027, with a dividend payout ratio of at least 60% and ROE target of 20% or higher.