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Financial results presentation6072ERTH Group Co.,Ltd.Information and Communications, Services and Others

Supplementary Explanatory Materials for the Fiscal Year Ending March 2026 Results

Revenue and gross profit increased significantly following the integration of ハウスワランティ, but operating profit and ordinary profit declined as selling, general and administrative expenses increased, including personnel expenses and goodwill amortization related to the integration. The Company expects an operating loss next fiscal year due to upfront investment in information systems, human resources and new businesses.

Worth reading
70In focus
Scored from 4 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
70.1
Year-on-year revenue growth (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFiscal year ending March 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,193 million+70.1%
Operating profit¥35 million-67.6%
Ordinary income¥45 million-58.4%
Net income¥197 million+165.4%
Gross Profit Margin42.5% (gross profit of ¥1,356 million / revenue of ¥3,193 million; year-on-year change in percentage points: Not disclosed)
Operating profit margin1.1% (operating profit of ¥35 million / revenue of ¥3,193 million; year-on-year change in percentage points: Not disclosed)
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
¥3,600 million
Operating profit
¥-125 million
Ordinary income
¥-95 million
Net income for the current fiscal year
¥-127 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Operating profit in the previous fiscal year¥109 million
  • Increased¥436 million
    FactorsGross profit
  • Decreased¥-247 million
    FactorsPersonnel expenses
  • Decreased¥-71 million
    FactorsGoodwill Amortization
  • Decreased¥-36 million
    FactorsOutsourcing expenses
  • Decreased¥-20 million
    FactorsRent
  • Decreased¥-19 million
    FactorsTravel and transportation expenses
  • Decreased¥-14 million
    FactorsSystem-related expenses
  • Decreased¥-100 million
    FactorsOther SG&A expenses
  • Operating profit for the period¥35 million
New initiatives
  • Beginning to accept orders for SCANnavi and developing a 3D surveying service
  • Using point-cloud data and enhancing the value added of BIM projects
  • Entering the energy infrastructure sector, including grid-scale battery storage facilities and solar carports
  • Upfront investment in rebuilding the information systems environment, recruiting and developing BIM personnel, and establishing a framework for promoting new businesses
  • Capital and business alliance with 株式会社Kaihou, and discussions on M&A, strategic investments and new businesses
  • Appointment of 4 director candidates
  • Planned change of company name to ERTH Group on 1 October 2026
  • Change of head office location from Shinjuku-ku, Tokyo, to Chuo-ku, Tokyo
  • Change of audit firm to Avantia Audit Corporation
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥130 million-0.3%
  • Customer base following the integration of ハウスワランティ1.3 times
  • New housing starts310,311 units-10.2%
Segment results
  • Ground Engineering Business
    Net Sales¥2,924 million (YoY +85.1%)
    Operating profit¥359 million (YoY +5.9%)
  • BIM Solution Business
    Net Sales¥269 million (YoY -9.1%)
    Operating profit¥-4 million
Medium-term management plan targets
Revenue targets under the medium-term management plan: ¥3,100 million for the fiscal year ended March 2026, ¥3,100 million for the fiscal year ending March 2027, and ¥4,000 million for the fiscal year ending March 2028. For comparison with actual results, revenue for the fiscal year ended March 2026 was ¥3,193 million.
Market Size / Share
New housing starts (combined total for owner-occupied houses and detached houses in the for-sale housing category): 345,587 units in the fiscal year ended March 2025, 310,311 units in the fiscal year ended March 2026, down 10.2% year on year
Number of employees
Number of Employees185 people
Record date31 March 2026
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥3,193 million (YoY +70.1%)
Operating profit¥35 million (YoY -67.6%)
Ordinary income¥45 million (YoY -58.4%)
Net income¥197 million (YoY +165.4%)
Gross Profit Margin42.5% (gross profit of ¥1,356 million / revenue of ¥3,193 million; year-on-year change in percentage points: Not disclosed)
Operating profit margin1.1% (operating profit of ¥35 million / revenue of ¥3,193 million; year-on-year change in percentage points: Not disclosed)
Full-year earnings forecastSubject Fiscal year ending March 2027 / Net Sales ¥3,600 million / Operating profit ¥-125 million / Ordinary income ¥-95 million / Net income for the current fiscal year ¥-127 million
Segment resultsSegment Ground Engineering Business / Net Sales ¥2,924 million (YoY +85.1%) / Operating profit ¥359 million (YoY +5.9%), Segment BIM Solution Business / Net Sales ¥269 million (YoY -9.1%) / Operating profit ¥-4 million
Breakdown of Factors Affecting the ChangeOperating profit in the previous fiscal year ¥109 million, Increased ¥436 million, Decreased ¥-247 million, Decreased ¥-71 million, Decreased ¥-36 million, Decreased ¥-20 million, Decreased ¥-19 million, Decreased ¥-14 million, Decreased ¥-100 million, Operating profit for the period ¥35 million
Key KPIsEBITDA ¥130 million (YoY -0.3%), Customer base following the integration of ハウスワランティ 1.3 times, New housing starts 310,311 units (YoY -10.2%)
Number of employeesNumber of Employees 185 people / Record date 31 March 2026 / Change during the period Not disclosed / Hiring plan Not disclosed
Medium-term management plan targetsRevenue targets under the medium-term management plan: ¥3,100 million for the fiscal year ended March 2026, ¥3,100 million for the fiscal year ending March 2027, and ¥4,000 million for the fiscal year ending March 2028. For comparison with actual results, revenue for the fiscal year ended March 2026 was ¥3,193 million.
Market Size / ShareNew housing starts (combined total for owner-occupied houses and detached houses in the for-sale housing category): 345,587 units in the fiscal year ended March 2025, 310,311 units in the fiscal year ended March 2026, down 10.2% year on year
New initiativesBeginning to accept orders for SCANnavi and developing a 3D surveying service, Using point-cloud data and enhancing the value added of BIM projects, Entering the energy infrastructure sector, including grid-scale battery storage facilities and solar carports, Upfront investment in rebuilding the information systems environment, recruiting and developing BIM personnel, and establishing a framework for promoting new businesses, Capital and business alliance with 株式会社Kaihou, and discussions on M&A, strategic investments and new businesses, Appointment of 4 director candidates, Planned change of company name to ERTH Group on 1 October 2026, Change of head office location from Shinjuku-ku, Tokyo, to Chuo-ku, Tokyo, Change of audit firm to Avantia Audit Corporation
Items this document does not state (15)
Selling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

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.

The increase in revenue and gross profit was attributable to the effects of the integration with 株式会社ハウスワランティ. The decline in operating profit was due to higher selling, general and administrative expenses, including increased personnel expenses associated with the organizational integration, goodwill amortization, outsourcing expenses, rent, travel expenses and system-related expenses. The operating loss expected for next fiscal year is explained as resulting from upfront investment in rebuilding the information systems environment, recruiting and developing BIM personnel, and establishing a framework for promoting new businesses.

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.
Supplementary Explanatory Materials for the Fiscal Year Ending March 2026 Results | ERTH Group Co.,Ltd. (6072) timely disclosure | Komori