Achieving the full-year forecast of ¥630 million hinges on profit recovery in Q4

For cumulative 9M from October 2025 to June 2026, operating revenue was ¥4,757 million, up 12.3% year on year, and operating profit was ¥487 million, up 26.0%. Ordinary profit was ¥571 million, up 14.9% year on year, while quarterly net profit was ¥379 million, up 22.2%. Both operating revenue and operating profit were above 75% at the end of Q3, indicating broadly steady progress against the full-year forecasts on the surface.

The full-year forecasts are operating revenue of ¥6,200 million, operating profit of ¥630 million, ordinary profit of ¥730 million and net profit of ¥500 million. A simple calculation of the gap between cumulative 9M results and the full-year forecasts indicates that Q4 requires operating revenue of ¥1,443 million, operating profit of ¥143 million, ordinary profit of ¥159 million and net profit of ¥121 million. Operating profit was at 77.3% of the full-year forecast at the end of 9M, while the amount required in Q4 represents 22.7% of the forecast. It is therefore necessary to determine which businesses will generate profit in the final quarter.

The company had not revised its full-year earnings forecasts as of the Q3 results, and had not changed its annual dividend forecast from ¥24 per share. The year-on-year changes projected for the full year are a 1.4% increase in operating revenue, a 2.1% increase in operating profit, a 0.7% decrease in ordinary profit and a 0.4% increase in net profit. Thus, ordinary profit is forecast to decline despite the increase in operating profit. In Q4, it will be necessary to determine how much of the increase in operating profit flows through to net profit, including changes in non-operating income and the presence or absence of extraordinary gains or losses.

In particular, the golf business's operating gross loss expanded to ¥102.545 million in cumulative 9M. Profit accumulation by the insurance business and Senbonmatsu Farm is therefore important to achieving the company-wide forecast. In the next full-year results, it will be necessary to review not only achievement of the company-wide forecast, but also Q4 results by segment, whether the full-year forecasts were revised, confirmation of the ¥24 annual dividend, and any additional disclosure of the payout ratio or shareholder return policy.