A structural-reform year pays off
UPR Corporation (TSE: 7065) reported consolidated results for FY8/2026, September 1, 2025 to August 31, 2026, on October 15, 2026 under Japanese GAAP. Net sales rose 1.8% to ¥15,631 million, operating profit 194.8% to ¥818 million and ordinary profit 58.8% to ¥1,190 million. Net profit attributable to owners of the parent rose 124.1% to ¥753 million, or ¥98.36 per share, and EBITDA, the company's key indicator, rose 5.1% to ¥3,968 million. The company said Japan's revised logistics-efficiency law, which asks shippers and carriers to cut waiting and loading times, keeps interest high in rental-pallet transport as a hedge against the risk of being unable to ship goods. Through-palletisation demand stayed firm, while spot rentals were held back by sluggish consumer spending and weaker port volumes. Depreciation was curbed by extending plastic pallets' useful life by one year from the start of the year, transport costs came in under plan as routes were made more efficient, and SG&A also beat plan. FY8/2026 was the first of two years the company calls its structural-reform phase.
Segment results
The logistics segment grew sales 2.1% to ¥14,089 million and segment profit 24.8% to ¥2,247 million, helped by joint use and collection of dedicated pallets for household paper products, expansion of pallet transport over its own collection network and steady growth overseas, led by Thailand; it is also passing higher costs into rental rates. The solutions segment's sales slipped 1.1% to ¥1,542 million, as last year's spot sales in its innovation business were not repeated, but it swung to a segment profit of ¥43 million from a ¥21 million loss. As part of a review of its business portfolio, the company announced a reorganisation of its assist-suit business in April and the transfer of its vehicle-solutions business in May. Segment profit is reconciled to ordinary profit.
Cash flow, dividend and outlook
Operating cash flow rose to ¥4,072 million from ¥3,058 million, while investing outflows were ¥3,350 million, mainly ¥2,897 million of property, plant and equipment. Total assets rose 3.1% to ¥22,634 million and net assets 6.6% to ¥9,912 million, lifting the equity ratio to 42.9% from 41.7%. The year-end dividend rises to ¥37 from ¥25, and the company plans ¥38 for FY8/2027. For FY8/2027 it forecasts net sales of ¥15,700 million (+0.4%), operating profit of ¥330 million (−59.7%), ordinary profit of ¥600 million (−49.6%) and net profit of ¥400 million (−46.9%). It said results will mark time in the second year of structural reform as it deals with tougher competition in pallet rental, rising rental-related costs and unprofitable businesses, before a growth phase it plans from FY8/2028.
| Metric | FY8/2026 | FY8/2025 | Change |
|---|---|---|---|
| Net sales (¥ million) | 15,631 | 15,354 | +1.8% |
| Operating profit (¥ million) | 818 | 277 | +194.8% |
| Ordinary profit (¥ million) | 1,190 | 749 | +58.8% |
| Net profit attrib. to owners of parent (¥ million) | 753 | 336 | +124.1% |
| EPS (¥) | 98.36 | 43.89 | +124.1% |
| EBITDA (¥ million) | 3,968 | 3,777 | +5.1% |
| Logistics — revenue (¥ million) | 14,089 | 13,794 | +2.1% |
| Logistics — segment profit (¥ million) | 2,247 | 1,800 | +24.8% |
| Solutions — revenue (¥ million) | 1,542 | 1,559 | −1.1% |
| Solutions — segment profit (¥ million) | 43 | −21 | loss to profit |
| Total assets (¥ million) | 22,634 | 21,956 | +3.1% |
| Net assets (¥ million) | 9,912 | 9,302 | +6.6% |
| Equity ratio | 42.9% | 41.7% | +1.2 pt |
| FY8/2027 guidance — revenue (¥ million) | 15,700 | — | +0.4% |
| FY8/2027 guidance — operating profit (¥ million) | 330 | — | −59.7% |
| FY8/2027 guidance — ordinary profit (¥ million) | 600 | — | −49.6% |
| FY8/2027 guidance — net profit (¥ million) | 400 | — | −46.9% |
| Annual dividend per share (¥) | 37.00 | 25.00 | +48.0% |
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.