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CORREC, Net Income Forecast for the Fiscal Year Turns to Profit, Exceeds Expectations
6578 CORREC HOLDINGS Inc. 【J-GAAP】
Earnings ReportCORREC HOLDINGS Inc. <6578> [TSE Std] announced its financial results after the market closed on January 14th (15:30). The consolidated net income/loss for the cumulative third quarter of the fiscal year ending February 2026 (March to November) turned into a loss of 39 million yen (compared to a profit of 108 million yen in the same period last year).
However, the full-year forecast for consolidated net income has been revised upward from an expected loss of 175 million yen to a profit of 36 million yen (compared to a profit of 19 million yen in the previous period), turning to a profit and leading to an 89.5% increase in the consolidated net income outlook.
Based on the full-year plan announced by the company after the upward revision, our estimate of the consolidated net income for the September to February period (second half) has been revised upward from an expected loss of 117 million yen to a profit of 94 million yen (compared to a profit of 64 million yen in the same period of the previous year), turning to a profit and leading to a 46.9% increase in the consolidated net income outlook.
In the most recent three-month period, from September to November (3Q), the consolidated net income significantly dropped to 19 million yen, an 87.6% decrease compared to the same period last year. The operating profit margin drastically worsened from 7.4% in the same period last year to 1.8%.
Kabutan News
Actual Results
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Progress Rate vs. First Half | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Mar - Nov, 2023 | 2,794 | 55 | 54 | 39 | 5.4 | 46.2 | Jan 12, 2024 | J-GAAP |
| Mar - Nov, 2024 | 4,517 | 96 | 100 | 108 | 14.8 | 45.0 | Jan 14, 2025 | J-GAAP |
| Mar - Nov, 2025 | 4,958 | 110 | 119 | -39 | -5.4 | 86.9 | Jan 14, 2026 | J-GAAP |
| YoY | +9.8% | +14.6% | +19.0% | - | - |
Guidance Update
Second Half Update
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Adj. Dividend | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Sep - Feb, 2025 Prev | 3,354 | 39 | 31 | -117 | -15.9 | 9 | Oct 15, 2025 | J-GAAP |
| Sep - Feb, 2025 New | 3,502 | 61 | 58 | 94 | 12.8 | 9 | Jan 14, 2026 | J-GAAP |
| Revision Rate | +4.4% | +56.4% | +87.1% | - | - |
Full Year Update
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Adj. Dividend | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Feb, 2026 Prev | 6,666 | 119 | 110 | -175 | -23.8 | 9 | Sep 11, 2025 | J-GAAP |
| Feb, 2026 New | 6,814 | 141 | 137 | 36 | 4.9 | 9 | Jan 14, 2026 | J-GAAP |
| Revision Rate | +2.2% | +18.5% | +24.5% | - | - |
Current Period Guidance
Second Half Results
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Adj. Dividend | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Sep - Feb, 2024 | 3,812 | 262 | 260 | 64 | 9.2 | 8 | Apr 14, 2025 | J-GAAP |
| Sep - Feb, 2025 Guidance | 3,502 | 61 | 58 | 94 | 12.8 | 9 | Jan 14, 2026 | J-GAAP |
| YoY | -8.1% | -76.7% | -77.7% | +46.9% | +39.6% |
Current Period Guidance
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Adj. Dividend | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Feb, 2024 | 3,938 | 119 | 117 | 88 | 12.2 | 7 | Apr 12, 2024 | J-GAAP |
| Feb, 2025 | 6,468 | 220 | 222 | 19 | 2.7 | 8 | Apr 14, 2025 | J-GAAP |
| Feb, 2026 Guidance | 6,814 | 141 | 137 | 36 | 4.9 | 9 | Jan 14, 2026 | J-GAAP |
| YoY | +5.3% | -35.9% | -38.3% | +89.5% | +80.1% |
Quarterly Results
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Operating Profit Margin | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Sep - Nov, 2024 | 1,861 | 138 | 138 | 153 | 20.9 | 7.4 | Jan 14, 2025 | J-GAAP |
| Dec - Feb, 2024 | 1,951 | 124 | 122 | -89 | -12.7 | 6.4 | Apr 14, 2025 | J-GAAP |
| Mar - May, 2025 | 1,815 | 111 | 110 | 87 | 11.9 | 6.1 | Sep 11, 2025 | J-GAAP |
| Jun - Aug, 2025 | 1,497 | -31 | -31 | -145 | -19.9 | -2.1 | Oct 15, 2025 | J-GAAP |
| Sep - Nov, 2025 | 1,646 | 30 | 40 | 19 | 2.6 | 1.8 | Jan 14, 2026 | J-GAAP |
| YoY | -11.6% | -78.3% | -71.0% | -87.6% | -87.5% |
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