SDS HOLDINGS Co.,Ltd. [1711.T]
TOKYO, May 15 (Pulse News Wire) – SDS Holdings CO.,LTD. (1711.T) reported its fiscal year 2026 third quarter earnings today, revealing a significant miss compared to previous forecasts.
According to the company’s statement, sales exceeded expectations due to the launch of a new data center construction project, but operating profit fell short by ¥208 million and ordinary profit missed by ¥8 million, largely due to higher-than-expected raw material costs impacting renovation margins. In a press release dated February 13, 2026, SDS Holdings had previously revised its outlook upward based on strong performance in renovation projects and improved profitability in energy-saving renovations.
However, during the fourth quarter ending March 31, 2026, despite surpassing revenue targets, the company faced challenges with rising material prices, leading to lower segment profit margins—from 18.5% in the cumulative third quarter to 16.5% in the standalone fourth quarter. Additionally, the company noted a positive impact on net income attributable to parent shareholders, which surpassed projections by ¥4 million thanks to gains from selling golf membership rights held since earlier periods.
This marks a mixed performance for SDS Holdings, highlighting operational resilience amid cost pressures.
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