Nagawa Q1 Operating Profit Jumps 32% to ¥982 Million on Steady Modular-Building Demand

Nagawa Co., Ltd. (TSE: 9663), a maker and lessor of prefabricated "super house" modular units, temporary site offices and relocatable buildings, reported results for the first quarter of the fiscal year ending March 2027 — the three months from April 1 to June 30, 2026 — under Japanese GAAP on a non-consolidated basis. Revenue rose 7.1% to ¥8,576 million, operating profit climbed 31.9% to ¥982 million, ordinary profit advanced 25.6% to ¥1,406 million, and net profit increased 23.6% to ¥918 million. Basic earnings per share were ¥59.24, up from ¥47.54. The company has reported on a non-consolidated basis since the third quarter of FY3/2025.

Modular demand holds firm

Demand for relocatable and temporary modular buildings held firm through the quarter, lifting revenue 7.1% year on year. Operating profit grew far faster than the top line, rising 31.9%, so the operating margin widened to about 11.5% from 9.3% a year earlier. Ordinary profit of ¥1,406 million ran well above operating profit, reflecting non-operating income, and was up 25.6% from ¥1,119 million.

One of the market's strongest balance sheets

Nagawa carries an unusually strong, almost debt-free balance sheet. At June 30, 2026 total assets stood at ¥76,652 million and net assets at ¥67,509 million, for an equity ratio of 88.1% — up from 87.3% at the March 31, 2026 year-end. Both total assets (from ¥79,330 million) and net assets (from ¥69,245 million) eased from the March balance-sheet date, primarily reflecting payment of the annual dividend during the quarter.

Dividend normalises after the 60th-anniversary payout

For FY3/2027 the company plans no interim dividend and a ¥60.00 year-end dividend, for a ¥60.00 annual total, against ¥100.00 paid for FY3/2026. The step down is not a cut to the ordinary dividend: the prior-year year-end payout of ¥100 comprised a ¥60 ordinary dividend plus a ¥40 commemorative dividend marking the company's 60th anniversary. On an ordinary basis the dividend is therefore flat at ¥60.

Guidance unchanged

Nagawa left its full-year forecasts unchanged. For the first half it guides revenue of ¥17,000 million (+3.6%), operating profit of ¥2,000 million (+9.3%), ordinary profit of ¥2,300 million (+3.1%), net profit of ¥1,500 million (+26.8%) and EPS of ¥96.78. For the full year it guides revenue of ¥38,000 million (+7.4%), operating profit of ¥4,500 million (+2.7%), ordinary profit of ¥5,100 million (+1.9%) and net profit of ¥3,300 million (−25.6%), with EPS of ¥212.91. The projected full-year decline in net profit is measured against a prior year that included one-off gains, while operating profit is still guided higher. First-quarter operating profit represents about 22% of the full-year plan.

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.