Daiwabo Holdings Co., Ltd. (TSE: 3107), the Osaka-based holding company that operates Japan's largest IT products distributor alongside a legacy textiles business, posted strong full-year results for FY2026 (April 2025 – March 2026) on May 13, 2026. Consolidated revenue jumped 18.8% year-on-year to ¥1,350,879 million (¥1.35 trillion), while operating profit rose 26.6% to ¥44,169 million and ordinary profit climbed 26.8% to ¥44,943 million. Profit attributable to owners of the parent advanced 29.4% to ¥32,030 million, compared with ¥24,751 million the prior year. Earnings per share reached ¥362.07, up from ¥271.37.
The revenue growth was primarily driven by the group's IT distribution arm — Daiwabo Information Systems Co., Ltd. (DIS), one of Japan's largest IT products and solutions distributors — which benefited from robust corporate demand for hardware, software, and cloud-related services. DIS serves as the engine of the group, accounting for the vast majority of consolidated turnover, while the Textiles segment contributes a smaller but profitable share through functional materials and apparel supply chains. Return on equity improved markedly to 19.9% from 16.8% the prior year, reflecting both the earnings uplift and efficient capital deployment.
Balance sheet strengthens; cash generation improves
Total consolidated assets expanded to ¥462,072 million from ¥440,122 million a year earlier, reflecting higher working capital in the IT distribution business and trade-receivable growth commensurate with the revenue increase. Net assets rose to ¥169,829 million from ¥152,310 million, and the equity ratio improved to 36.8% from 34.6%, pointing to a healthier capital structure. Net assets per share reached ¥1,954.00 versus ¥1,693.24 a year ago. Operating cash flow strengthened to ¥14,569 million from ¥5,909 million in FY2025, reflecting improved working-capital management and higher earnings conversion. Investing outflows widened slightly to -¥6,177 million from -¥2,588 million, while financing outflows of -¥19,662 million reflect dividend payments and debt management. Year-end cash and equivalents stood at ¥43,852 million, down from ¥55,221 million, primarily due to the higher financing outflows.
Scope change: Chinese textile joint venture excluded
During FY2026, Daiwabo Holdings made one material change to its consolidation scope: the exclusion of Suzhou Daiwa Knitting Garment Co., Ltd., a Chinese joint-venture operation in the Textiles segment. This reflects the group's ongoing rationalisation of its legacy textile manufacturing footprint, as the company pivots its growth narrative firmly toward IT distribution and digital services. No new subsidiaries were added to the consolidation scope during the year.
Dividend raised to ¥105; FY2027 guided at ¥36.5bn operating profit
Daiwabo Holdings raised the annual cash dividend to ¥105 per share for FY2026 (¥50 interim + ¥55 year-end), up from ¥90 the prior year, representing a payout ratio of 29.0% on consolidated net profit and a net-assets yield of 5.8%. Total dividends paid amounted to approximately ¥9,240 million. Looking ahead, the company guided for FY2027 (ending March 2027) with revenue of ¥1,189,000 million (-12.0%), operating profit of ¥36,500 million (-17.4%), ordinary profit of ¥36,700 million (-18.3%), and net profit of ¥25,300 million (-21.0%), equivalent to EPS of ¥291.09. The sharp decline in revenue guidance reflects structural changes in the group's consolidation perimeter as well as more conservative assumptions on IT market demand. The company guided an interim dividend of ¥55 per share for FY2027's first half, implying a payout ratio of approximately 37.8% on the full-year net profit forecast.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 1,350,879 | 1,136,817 | +18.8% |
| Operating profit (¥ million) | 44,169 | 34,899 | +26.6% |
| Ordinary profit (¥ million) | 44,943 | 35,454 | +26.8% |
| Net profit attrib. to owners (¥ million) | 32,030 | 24,751 | +29.4% |
| EPS (¥) | 362.07 | 271.37 | +33.4% |
| ROE | 19.9% | 16.8% | +3.1pp |
| Total assets (¥ million) | 462,072 | 440,122 | +5.0% |
| Equity ratio | 36.8% | 34.6% | +2.2pp |
| Operating cash flow (¥ million) | 14,569 | 5,909 | +146.5% |
| Annual dividend (¥) | 105 | 90 | +16.7% |
| FY2027 guidance — revenue (¥ million) | 1,189,000 | — | −12.0% |
| FY2027 guidance — operating profit (¥ million) | 36,500 | — | −17.4% |
| FY2027 guidance — net profit (¥ million) | 25,300 | — | −21.0% |
| FY2027 guidance — EPS (¥) | 291.09 | — | — |
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.