USS (4732) Q3 2026 earnings summary

Executive summary

• Net sales for Q1-3 FY2025 reached ¥82.97 billion, up 8.2% year-over-year, with operating profit at ¥43.89 billion, up 10.2% year-over-year, and profit attributable to owners at ¥30.43 billion, all marking record highs for the period.

• Comprehensive income increased 11.0% year-over-year to ¥30.76 billion for the nine-month period.

• The company revised its FY2025 forecast upward, now expecting net sales of ¥111.9 billion and operating profit of ¥58.0 billion, reflecting strong Q3 results.

• Dividend forecast for FY2025 was raised to ¥51.8, marking the 26th consecutive year of dividend increases, with a total payout ratio target of at least 100% by FY2027.

• Share repurchases and cancellations were executed, with 10.32 million shares repurchased and 40 million shares cancelled as of June 2025, reducing issued shares from 514 million to 474 million.

Financial highlights

• Q1-3 FY2025 net sales: ¥82.97 billion (+8.2% YoY); operating profit: ¥43.89 billion (+10.2% YoY); profit attributable to owners: ¥30.43 billion (+10.2% YoY).

• Gross margin improved to 63.0% from 62.1% YoY; gross profit increased to ¥52.25 billion from ¥47.62 billion.

• Ordinary profit reached ¥44.44 billion, up from ¥40.37 billion YoY.

• Basic earnings per share for the nine months was ¥65.25, up from ¥57.54 in the prior year.

• Cash and cash equivalents at period end were ¥69.98 billion, down from ¥78.78 billion at the previous year-end.

Outlook and guidance

• FY2025 net sales forecast revised to ¥111.9 billion (+7.6% YoY); operating profit to ¥58.0 billion (+7.0% YoY); profit attributable to owners to ¥40.0 billion (+6.3% YoY).

• Basic earnings per share forecasted at ¥85.86 for the full year.

• Dividend forecast revised to ¥51.80 per share for the fiscal year.

• Auction vehicles consigned forecast at 3.44 million (+7.4% YoY), with a contract completion rate of 66.0%.

• ROE target raised to 20% or higher; dividend payout ratio target increased to at least 60%.