Frontier International reports strong Q1 growth, beats expectations

Frontier International Group reported a 44.2% increase in revenue and a 179.5% rise in operating profit for the first quarter of the fiscal year ending April 2026 (May-July). Sales reached JPY 5,692 million, up from JPY 3,949 million in the previous year, with gross profit increasing by 53.9% to JPY 1,055 million. This growth was attributed to strong event sector orders, partial revenue recognition from the Osaka-Kansai Expo, and all consolidated subsidiaries (Gaia Communications, Cinebridge, Max Produce) achieving profitability.

Despite a JPY 67 million increase in selling, general, and administrative expenses due to a change in accounting method for retirement benefits, the company's operating profit reached JPY 239 million. Net income for the period surged by 220.2% to JPY 143 million. Order backlog and inquiries also saw a significant increase of 21.5% from the previous period, totaling JPY 10,731 million as of July 31, 2025.

The company maintains its full-year earnings forecast for the fiscal year ending April 2026, anticipating JPY 23,000 million in revenue and JPY 1,550 million in operating profit. Frontier International also decided to acquire shares of NPU Corporation, making it a subsidiary. The company’s dividend policy aims for a consolidated payout ratio of approximately 50.0%, barring major M&A activities.