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Results presentation4415BROAD ENTERPRISE CO.,LTD.Information and Communications, Services and Others

FY2026 Q3 Earnings Presentation Transcript

Consolidated revenue for the third quarter of the fiscal year ending December 2026 rose 88.1% year on year to ¥8,869 million, driven by growth in BRO-ROOM and BRO-WALL and the start of NCK's consolidation. The standalone full-year revenue forecast was also revised upward to ¥12 billion and the net income forecast to ¥750 million, while consolidated forecasts for profit at each stage were also disclosed.

Worth reading
62In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
88.69
yen
Wording
Conditional
How definitive the wording is.

Contents of this document

Briefing transcriptThird quarter of the fiscal year ending December 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales88.69 yen+88.1%
Results for the three months of the current quarter
NCK
Net Sales
3.34 yen
Operating profit (loss)
-0.05 yen
Period CoveredJuly–September 2026
Full-year earnings forecast
Non-consolidated
Net Sales
120 yen
Net income for the current fiscal year
7.5 yen
Consolidated
Profit at each stageAlready disclosed, but the figures are not stated in the main text
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Consolidated revenue
70.4 %
Standalone revenue
71.1 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Growing steadily / progressing as expected
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. The specific reason for the director's retirement is personal, and no further disclosure will be made. The management and administrative functions will be shifted to Tokyo.
  2. The full cost of receivables securitisation cannot be disclosed due to confidentiality obligations, but an analysis of factors driving changes in ordinary profit was added.
  3. The decline in gross profit from the order flow in the third quarter was because the target for the fiscal year had been achieved around August, after which efforts focused on preparing projects for the next fiscal year and completing construction.
  4. NCK's operating loss was primarily due to customers holding back on purchases amid interest-rate trends and the lengthening of sales lead times. Investment in additional sales staff and web marketing will continue.
  5. NCK's 2027 earnings forecast, medium-term profit target and synergy profit are not disclosed at this time.
  6. Receivables securitisation costs are affected by a combination of interest rates, the amount raised, the remaining term and the subordination ratio, among other factors.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
An analysis of factors driving changes in ordinary profit was added for the first time. The main text does not provide a detailed breakdown by factor. The factors include losses on the sale of receivables associated with receivables securitisation, interest rates, the amount raised, the weighted average remaining term and the subordination ratio.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Mentions interest-rate trends, the timing, scale and economic terms of receivables securitisation, and NCK's sales lead time. Numerical assumptions: not disclosed.
New initiatives
  • Customer and sales-channel coordination with NCK, and cross-selling of BRO-ROOM, BRO-WALL and other products
  • Increase in NCK's sales staff and investment in web marketing
  • Strengthening of the accounting and finance structure and shifting functions to Tokyo
  • Establishment of a new receivables securitisation structure
  • Expansion of agency agreements and partnerships, and addition of construction management staff
  • The shareholder benefit program changed from once a year to twice a year, with an expanded range of digital gifts
Key KPIsA metric the company considers important as a management benchmark.
  • Gross profit from the construction-completion flow (through Q3)25.73 yen
  • Gross profit from the order flow (Q1)13.42 yen
  • Gross profit from the order flow (Q2)13.1 yen
  • Gross profit from the order flow (Q3)9.85 yen
  • Cumulative gross profit from the order flow (January–September)36.37 yen
  • Gross profit from the order flow for the fiscal year (October 2025–September 2026)48.81 yen
  • Equity ratio
    Year on year against the same period last yearImproved by 1.4 percentage points
  • Agency sales ratio (Q3)49 %
Segment results
  • BRO-ROOM
    Net SalesApproximately ¥4 billion
    Year on year against the same period last year+157.7%
  • BRO-WALL
    Net SalesNearly ¥2 billion
    Year on year against the same period last year+269.4%
  • NCK
    Net Sales¥334 million (July–September)
    Operating profit (loss)-¥5 million
Medium-term management plan targets
Period Covered2027–2029
Quantitative TargetsCurrently being prepared; specific figures not disclosed
Financial targets
Sets a market capitalisation of ¥10 billion as a management target. The equity ratio improved by 1.4 percentage points. Numerical targets for ROE and other metrics: not disclosed.
Orders received and order backlog
Gross profit from orders received
First quarter13.42 yen
Second quarter13.1 yen
Third quarter9.85 yen
Order backlogThe amount is not stated in the main text
Number of employees
NCKHired 3 sales staff
Accounting and Finance StructureTokyo hiring, including 4 people other than Hayashi (林). Total headcount: not disclosed
New graduate hiringUnder selection; headcount not disclosed
Annual Dividend
Plans to pay its first dividend. The per-share dividend and the interim and year-end breakdown are not disclosed.
Payout ratio
20
Contents of this document
ItemDetails
Document typeBriefing transcript
Fiscal Period CoveredThird quarter of the fiscal year ending December 2026
Net Sales88.69 yen (YoY +88.1%)
Results for the three months of the current quarterNCK Net Sales 3.34 yen / Operating profit (loss) -0.05 yen / Period Covered July–September 2026
Full-year earnings forecastNon-consolidated Net Sales 120 yen / Net income for the current fiscal year 7.5 yen / Consolidated Profit at each stage Already disclosed, but the figures are not stated in the main text
Progress against full-year forecastConsolidated revenue 70.4 % / Standalone revenue 71.1 %
Self-assessment against the planGrowing steadily / progressing as expected
Segment resultsSegment BRO-ROOM / Net Sales Approximately ¥4 billion / Year on year against the same period last year 157.7, Segment BRO-WALL / Net Sales Nearly ¥2 billion / Year on year against the same period last year 269.4, Segment NCK / Net Sales ¥334 million (July–September) / Operating profit (loss) -¥5 million
Breakdown of Factors Affecting the ChangeAn analysis of factors driving changes in ordinary profit was added for the first time. The main text does not provide a detailed breakdown by factor. The factors include losses on the sale of receivables associated with receivables securitisation, interest rates, the amount raised, the weighted average remaining term and the subordination ratio.
Key KPIsGross profit from the construction-completion flow (through Q3) 25.73 yen, Gross profit from the order flow (Q1) 13.42 yen, Gross profit from the order flow (Q2) 13.1 yen, Gross profit from the order flow (Q3) 9.85 yen, Cumulative gross profit from the order flow (January–September) 36.37 yen, Gross profit from the order flow for the fiscal year (October 2025–September 2026) 48.81 yen, Indicator name Equity ratio / Year on year against the same period last year Improved by 1.4 percentage points, Agency sales ratio (Q3) 49 %
Number of employeesNCK Hired 3 sales staff / Accounting and Finance Structure Tokyo hiring, including 4 people other than Hayashi (林). Total headcount: not disclosed / New graduate hiring Under selection; headcount not disclosed
Assumptions Underlying the Business OutlookMentions interest-rate trends, the timing, scale and economic terms of receivables securitisation, and NCK's sales lead time. Numerical assumptions: not disclosed.
Medium-term management plan targetsPeriod Covered 2027–2029 / Quantitative Targets Currently being prepared; specific figures not disclosed
Financial targetsSets a market capitalisation of ¥10 billion as a management target. The equity ratio improved by 1.4 percentage points. Numerical targets for ROE and other metrics: not disclosed.
Annual DividendPlans to pay its first dividend. The per-share dividend and the interim and year-end breakdown are not disclosed.
Payout ratio20
Orders received and order backlogGross profit from orders received First quarter 13.42 yen / Second quarter 13.1 yen / Third quarter 9.85 yen / Order backlog The amount is not stated in the main text
Key points of the Q&AThe specific reason for the director's retirement is personal, and no further disclosure will be made. The management and administrative functions will be shifted to Tokyo., The full cost of receivables securitisation cannot be disclosed due to confidentiality obligations, but an analysis of factors driving changes in ordinary profit was added., The decline in gross profit from the order flow in the third quarter was because the target for the fiscal year had been achieved around August, after which efforts focused on preparing projects for the next fiscal year and completing construction., NCK's operating loss was primarily due to customers holding back on purchases amid interest-rate trends and the lengthening of sales lead times. Investment in additional sales staff and web marketing will continue., NCK's 2027 earnings forecast, medium-term profit target and synergy profit are not disclosed at this time., Receivables securitisation costs are affected by a combination of interest rates, the amount raised, the remaining term and the subordination ratio, among other factors.
New initiativesCustomer and sales-channel coordination with NCK, and cross-selling of BRO-ROOM, BRO-WALL and other products, Increase in NCK's sales staff and investment in web marketing, Strengthening of the accounting and finance structure and shifting functions to Tokyo, Establishment of a new receivables securitisation structure, Expansion of agency agreements and partnerships, and addition of construction management staff, The shareholder benefit program changed from once a year to twice a year, with an expanded range of digital gifts
Items this document does not state (12)
Operating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresMarket Size / Share

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

BRO-ROOM and BRO-WALL progressed as expected, and NCK's profit and loss was consolidated from July, driving the increase in revenue. At NCK, however, sales were delayed as customers held back on purchases amid interest-rate trends, and a loss on the sale of receivables associated with receivables securitisation was recorded as a non-operating expense.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
FY2026 Q3 Earnings Presentation Transcript | BROAD ENTERPRISE CO.,LTD. (4415) timely disclosure | Komori