Yamato Holdings Shows Growth Momentum Despite Profit Decline in Nine-Month Results

Yamato Holdings Co., Ltd. (YATRY, YATRF, 9064.T), Japan’s largest door-to-door delivery and logistics operator, released its nine-month financial results Monday, painting a picture of operational strength even as bottom-line earnings faced headwinds. The Tokyo-listed company demonstrated strong revenue growth and improved operational efficiency, though net income contracted compared to the previous year.

Revenue Gains and Operating Profit Surge Fuel Yamato’s Performance

The Japanese logistics giant’s operating revenue climbed to 1.44 trillion yen from 1.344 trillion yen in the corresponding period of the prior year. More impressively, Yamato’s operating profit jumped substantially to 38.59 billion yen, marking a significant leap from 26.26 billion yen recorded last year.

Yet the company’s profit attributable to owners of the parent fell to 25.19 billion yen, declining from 28.88 billion yen a year earlier. Basic earnings per share contracted to 79.36 yen versus 84.40 yen in the prior year, reflecting the impact of factors beyond operational performance. This divergence between operating gains and net income suggests Yamato faced pressure from non-operating expenses or tax-related impacts.

Yamato Raises Fiscal 2026 Guidance on Profitability Momentum

Looking ahead, management expressed newfound confidence in Yamato’s earnings trajectory. The company forecast operating revenue for fiscal year 2026 at 1.86 trillion yen, representing a 5.5% increase from current levels. More notably, operating profit is expected to reach 28 billion yen, a 97.1% surge from the prior fiscal year—signaling management’s bullish outlook on operational efficiency.

However, profit attributable to owners of parent is projected to decline to 15 billion yen for FY26, marking a 60.5% decrease. Basic earnings per share are anticipated at 47.29 yen, continuing the downward pressure on shareholder returns. This cautious view on bottom-line profit despite operational optimism likely reflects anticipated increases in non-operating costs or tax burdens that Yamato expects to face.

Stock Market Reaction to Yamato’s Mixed Outlook

Markets responded positively to Yamato’s fiscal year guidance and operational momentum. The company’s stock closed trading 1.41% higher at JPY 2,049 on the Tokyo Stock Exchange, suggesting investor appreciation for the strong operating profit trajectory and revenue growth projections despite the profit attributable headwinds.