Daiichi Koutsu Swings to Profit on 21% Revenue Jump as a Land Sale Lifts Its Property Arm 70%

Loss to profit at every line

Daiichi Koutsu Sangyo Co., Ltd. (TSE: 9035) published consolidated results for the three months to June 30, 2026 on August 12, 2026 under Japanese GAAP. Revenue rose 21.2% to ¥24,377 million — a third consecutive quarter of growth — while cost of sales rose 18.8% and selling and administrative expenses only 8.5%. That combination produced an operating profit of ¥736 million against a ¥34 million loss, an ordinary profit of ¥842 million against a ¥13 million loss, and net profit attributable to shareholders of ¥566 million against a ¥120 million loss. Comprehensive income was ¥1,118 million against a ¥126 million loss.

Two structural changes land in this quarter. The reporting segments were cut from six — taxi, bus, property sales, property rental, property revitalisation and property finance — to two, passenger transport and real estate, with vehicle maintenance, LPG sales and the No.1 Taxi Network subsidiary folded into passenger transport and the parking business into real estate. And the measure of segment profit changed from operating profit to ordinary profit, because interest expense and subsidy income have grown large enough that management now steers on the ordinary line. Prior-year segment figures have been restated on the new basis.

Taxi revenue up 8.5% after 4,044 hires

Passenger transport lifted revenue 7.4% to ¥16,548 million and swung to an ordinary profit of ¥88 million from a ¥59 million loss. Taxi revenue grew 8.5% to ¥14,294 million on fare revisions and aggressive recruitment — 4,044 new drivers across the 2024 and 2025 business years — and its ordinary loss narrowed to ¥191 million from ¥348 million. Bus went the other way: revenue fell 6.6% to ¥1,824 million and ordinary profit 33.7% to ¥169 million, after typhoons forced three days of suspended services.

Property sales more than double

Real estate lifted revenue 69.9% to ¥7,501 million and ordinary profit 133.0% to ¥1,092 million. Within it, property sales revenue rose 134.5% to ¥5,016 million on the sale of land held for a condominium project, turning an ordinary profit of ¥265 million after a ¥273 million loss. Property finance grew revenue 26.5% to ¥493 million and profit 11.9% to ¥233 million as its loan book expanded; revitalisation revenue rose 52.4% to ¥181 million and turned a ¥13 million profit. Rental was the exception, with revenue down 1.4% to ¥1,213 million and profit down 7.9% to ¥483 million against last year's property disposals, though occupancy stayed high. The other businesses shrank revenue 5.1% to ¥913 million while narrowing their ordinary loss to ¥42 million from ¥109 million.

The property-sales business is heavily seasonal: a high share of projects complete in the fourth quarter to match customer timing, so fourth-quarter revenue is markedly higher than in the first three. The first quarter is not a proportional guide to the year.

A smaller balance sheet, and guidance held

Total assets fell ¥4,771 million to ¥188,247 million, mainly ¥2,445 million less real estate for sale and ¥2,295 million less cash. Liabilities fell ¥5,344 million to ¥141,376 million, chiefly ¥3,162 million of long-term borrowings and ¥2,526 million of trade payables. Net assets rose ¥572 million to ¥46,870 million: the ¥566 million net profit and a ¥620 million gain on other securities against ¥525 million of dividends paid. The company reviewed the full-year FY3/2027 forecast it published on May 14, 2026 in light of first-quarter trading and left it unchanged.

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.