USS FY26 Operating Profit Climbs 10% to a Record ¥59.8bn; Net Profit ¥41.4bn as Buybacks Shrink the Share Count

USS Co., Ltd. (TSE: 4732), the operator of the USS network of used-vehicle auction venues and Japan's largest player in the segment, reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue rose 9.5% year-on-year to ¥113,854 million from ¥104,021 million, while operating profit advanced 10.4% to a record ¥59,847 million from ¥54,206 million. Ordinary profit climbed 10.4% to ¥60,590 million, and net profit attributable to owners of the parent rose 9.9% to ¥41,360 million from ¥37,636 million. Comprehensive income increased 10.8% to ¥41,934 million.

Margins above 52% as scale advantage holds

USS remains one of the most profitable companies in Japan by margin. The operating margin widened to 52.6% from 52.1% a year earlier, a rare level of profitability that reflects the company's commanding share of the used-car auction market and the network effects of its physical auction venues. Basic earnings per share rose to ¥88.78 from ¥78.65 — a 12.9% increase that outpaced net-profit growth thanks to a smaller share count — and return on equity improved to 20.1% from 18.9%.

Fortress balance sheet, strong cash generation

Total assets stood at ¥270,130 million against net assets of ¥210,966 million, leaving an equity ratio of 76.7% and book value per share of ¥446.00. Cash flow was robust across the board: operating activities generated ¥43,913 million, investing activities used ¥21,271 million, and financing activities used ¥38,428 million — the latter reflecting dividends and share buybacks. Cash and equivalents ended the period at ¥88,933 million.

Dividend raised to ¥54.70; 40 million shares cancelled

Shareholder returns stepped up sharply. The FY3/2026 annual dividend was lifted to ¥54.70 per share (¥25.20 interim + ¥29.50 year-end) from ¥43.40 — a 26.0% increase — for a consolidated payout ratio of 61.4% and a dividend-on-equity (DOE) ratio of 12.5%. On the capital-management side, USS cancelled 40 million shares, cutting shares outstanding from 514,000,000 to 474,000,000, while treasury shares fell from 40.69 million to 9.70 million. The combination of a higher dividend and a smaller share base underpins the double-digit rise in EPS.

FY3/2027 guidance: steady growth, ¥61.0bn operating profit

For FY3/2027, management guides revenue of ¥119,800 million (+5.2%), operating profit of ¥61,000 million (+1.9%), ordinary profit of ¥61,800 million (+2.0%), and net profit attributable to owners of ¥41,600 million (+0.6%), with EPS of ¥91.35. On a first-half (cumulative) basis, the company expects revenue of ¥59,500 million, operating profit of ¥29,850 million, and net profit of ¥20,290 million. The planned FY3/2027 dividend is ¥55.00 per share (¥27.50 interim + ¥27.50 year-end), continuing the company's progressive return policy.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.