PCA Corporation revises earnings forecast, maintains dividend despite challenges

PCA Corporation revised its consolidated earnings forecast for the fiscal year ending March 31, 2026, lowering projected net sales to JPY 17,539m (down 0.8%), operating profit to JPY 2,543m (down 9.9%), and net profit attributable to parent company shareholders to JPY 1,649m (down 13.0%). This revision stems from slower-than-anticipated new contract acquisition for PCA Cloud and other stock businesses in the first half of the year, despite overall revenue growth. Increased development expenses, personnel costs, outsourcing, and advertising, part of a mid-term management plan to strengthen development capabilities, also contributed to the reduced profit outlook.

The company's interim financial results for the six months ended September 30, 2025, show net sales of JPY 8,223m (up 4.2%), but operating profit decreased by 11.9% to JPY 1,211m. Net profit attributable to parent company shareholders declined by 16.8% to JPY 759m. These interim results reflect the initial impact of increased investment and operating expenses.

Despite the downward revision in earnings, PCA Corporation's board decided to maintain the dividend forecast at JPY 95.00 per share for the fiscal year ending March 31, 2026. This decision underscores the company's focus on shareholder returns, aligning with its mid-term management plan to enhance capital efficiency and achieve an ROE of 10% and a positive EVA spread.