Japan Reliance Service Corporation Revises FY2026 Earnings Down 31.7%
Japan Reliance Service Corporation (TSE:4664) has downwardly revised its full-year earnings forecast for the fiscal year ending March 2026, citing deferred tax asset accounting adjustments and softer-than-expected demand in its staffing division.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 8.30bn | JPY 8.23bn | -0.8% |
| Operating Profit | JPY 300M | JPY 217M | -27.7% |
| Ordinary Income | JPY 300M | JPY 234M | -22.0% |
| 親会社株主に帰属する当期純利益 | JPY 205M | JPY 140M | -31.7% |
| 1株当たり当期純利益 | JPY 71.23/share | JPY 47.86/share | JPY -23.37/share |
The company identified a deferred tax asset accounting adjustment required during final settlement procedures as the primary driver of the downward revision. While the security and cleaning divisions contributed new contract wins throughout the year, temporary staffing assignments underperformed expectations. Rising labor and facility costs further pressured profitability, pushing net profit to JPY 140M from the previously forecast JPY 205M.
Management emphasized that the accounting adjustment is non-cash in nature and does not affect operational cash flow or medium-to-long-term earnings capacity. However, the 31.7% net profit decline and 27.7% operating profit reduction signal operational headwinds in the staffing business that warrant investor attention. The revenue decline of just 0.8% masks a more significant margin compression, suggesting pricing pressure or unfavorable business mix shifts in the company’s service portfolio.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.