SUNWELS Co., Ltd. Q3 FY2026 Earnings Presentation

Source disclosure: February 13, 2026

SUNWELS Co., Ltd. [9229.T]

TOKYO — SUNWELS Co., Ltd. (9229), an electronics and technology company listed on the Tokyo Stock Exchange, reported its third quarter earnings for the fiscal year ending March 2026 on February 13, 2026. The company's president, Ryota Nishimae, disclosed that during the period from April 1, 2025 to December 31, 2025, the firm experienced mixed results, with revenue growth but significant declines in profitability.

Revenue for the third quarter of the fiscal year 2026 increased by 2.2% to ¥20,734 million compared to ¥20,293 million in the same period last year. However, operating income fell sharply to a loss of ¥1,192 million from a profit of ¥1,733 million in the previous year’s corresponding quarter. Similarly, ordinary income dropped to a loss of ¥1,943 million from a profit of ¥1,158 million, while net income also declined significantly to a loss of ¥2,055 million from a loss of only ¥123 million in the prior year. Adjusted diluted earnings per share were negative ¥63.37 for the current quarter, reflecting a substantial deterioration from the negative ¥3.89 recorded in the comparable quarter of the previous year.

The company's adjusted EBITDA for the third quarter of fiscal 2026 was ¥181 million, marking a decline of 93.4% from ¥2,730 million in the same quarter of the previous year. This sharp decrease underscores the challenges faced by SUNWELS in maintaining operational efficiency and profitability amid changing market conditions.

Regarding the financial position as of the end of the third quarter, However, shareholders' equity decreased to ¥6,570 million from ¥8,616 million, leading to a reduction in the equity ratio to 14.3%, down from 22.0%. These figures indicate a weakening balance sheet despite growing asset levels.

SUNWELS did not provide any interim dividend payments during the first three quarters of the fiscal year 2026, consistent with no dividends paid out in the previous fiscal year. For the full fiscal year 2026, the company projects sales to rise by 8.9% to ¥28,844 million, but it anticipates further losses across key metrics such as operating income, ordinary income, and net income, all expected to be negative. The projected adjusted diluted earnings per share is forecasted to be negative ¥70.35 for the entire fiscal year, indicating continued pressure on profitability.

In light of these challenging financials, SUNWELS emphasized that the forward-looking statements provided in this report are based on current information and reasonable assumptions. Actual performance could vary due to various factors beyond the company's control. Investors are advised to review the detailed explanations regarding the assumptions underlying the forecasts and their implications for future business operations.

Note: Financial figures from the earnings presentation have been removed pending correction. For accurate figures, refer to the company's earnings summary (kessan tanshin) filed separately on TDNet.