1446.T

• Company Overview: Candyle Group operates as a pure holding company with 4 consolidated subsidiaries, focused on niche building maintenance services (does not construct new buildings) with a 30-year history, listed on the Tokyo Stock Exchange since 2018. The group follows a B2B2C business model, serving construction-related business clients that deliver services to end consumers across a national network of in-house technicians and partner companies.
• Overall 2025 September Full Year Results: Total consolidated revenue hit 13.86 billion yen (104.8% YoY), operating profit was 0.42 billion yen (117.1% YoY), ordinary income was 0.417 billion yen (119.1% YoY), net income was 0.196 billion yen (142.3% YoY). All revenue and profit metrics beat prior guidance and grew YoY, with operating profit coming in above expectations due to better-than-forecast productivity.
• Profitability Drivers: Gross profit grew 0.321 billion yen YoY on strong growth from the two core construction service segments and improved productivity from better operational efficiency. Selling, general and administrative expenses (SG&A) increased 0.26 billion yen YoY, with 0.167 billion yen of the increase coming from higher personnel costs (additional executive roles for generational transition, benefit improvements, expanded hiring of field certified technicians). The remaining 0.092 billion yen of SG&A growth went to DX investments: sales management system renewal, new HR systems (including talent management platforms), network security upgrades, certification support for field staff, and generative AI training.
• Construction Workforce Update: In-house technician count was flat YoY at 837 (98.7% YoY), while the number of partner companies increased 12.4% YoY to 1,510, so total construction capacity continues to grow. The company maintains and strengthens capacity via improving in-house technician skills and expanded use of partners, supporting revenue growth and profit generation. It continues to prioritize expanding certified construction managers via enhanced qualification support, which has seen good progress so far.

• 2026 September Full Year Guidance: The company targets total revenue of 15 billion yen (up 1.139 billion yen YoY) and operating profit of 0.48 billion yen (up 0.059 billion yen YoY), projecting another all-time high for both revenue and profit while continuing growth investments in human capital and systems.
• Market Outlook: New housing demand is expected to decline, but maintenance demand for existing housing stock is projected to remain steady driven by industry trends. Commercial environment demand is expected to stay strong, supported by rising construction investment, urban redevelopment tailwinds, ongoing inbound demand from yen depreciation, and growing renovation demand for aging buildings.
• Dividend Guidance: For 2026 September, the company plans a year-end-only dividend of 10 yen per share, a 2 yen per share increase from 2025 September. There are no changes to the shareholder benefit program.
• Medium-Term Guidance: The company maintains its medium-term target of 20 billion yen in revenue for the 2028 September fiscal year, with no changes to prior strategic plans.
• Strategic Priority Areas for Growth: The company will focus on five core priorities to hit medium-term targets: (1) Push price increases to pass rising raw material and labor costs through to customers, improve pricing for unprofitable clients, and enhance quoting accuracy and profitability-focused order decisions; (2) Expand labor and construction capacity by balancing continued growth of external partners (franchisees, collaborating companies) with strengthened in-house technician recruitment and training, with a specific focus on growing the construction manager workforce; (3) Improve productivity via operational improvements and DX to support revenue growth with a smaller workforce amid rising input costs; (4) Pursue strategic alliances and business partnerships with complementary companies to create new order opportunities, cross-referrals, and expanded service offerings; (5) Strengthen human capital management by continuing existing efforts to improve compensation, diversity, and working conditions, while expanding reskilling and AI skills training to drive productivity and sustainable long-term growth.

1. Repair Service: 4.493 billion yen in revenue, 102.6% year-over-year (YoY), accounting for 32.4% of total revenue. Detached home repair saw order volume decline 2.2% YoY due to lower new housing starts, but average order value rose 5.4% YoY from higher-value projects and price hikes, maintaining flat revenue. Multi-family repair saw total labor hours decline 5% YoY, but technician productivity increased 6.1% YoY from improved efficiency and higher prices, keeping revenue flat. 2. Living Environment Construction Services: 4.148 billion yen in revenue, 106.5% YoY, accounting for 29.9% of total revenue, hitting an all-time high. Growth was driven by steady growth in regular inspections (volume up 8.7% YoY, revenue up 7.5% YoY despite a 1.1% YoY drop in average order price from volume discounts on large long-term inspection contracts) and strong pre-handover inspection demand for both detached and multi-family housing (small repairs, inspections and coatings revenue up 11.7% YoY). 3. Commercial Environment Construction Services: 4.551 billion yen in revenue, 106.7% YoY, accounting for 32.8% of total revenue, hitting an all-time high. Growth was driven by strong demand for commercial interior construction, rising assembly orders from furniture mass retailers, and a notable increase in large-scale projects (hotels, offices, medical facilities) that pushed up average order value. A small Q3 revenue drag from project delays was offset by strong Q4 order acquisition to deliver full-year growth. 4. Product Sales: 0.667 billion yen in revenue, 97.6% YoY, accounting for 4.8% of total revenue.

• Long-term industry risk: New housing starts are projected to continue declining through 2030, with additional downside risk from slowing new home sales due to rising interest rates, which creates headwinds for the company's repair and new-home focused living environment services.
• Labor market risk: The construction industry faces severe and sustained labor shortages due to demographic decline, changing work preferences, and reduced interest in blue-collar roles, making in-house technician recruitment and retention an ongoing core challenge for the company's labor-intensive business model.
• Input cost risk: Rapid increases in construction material costs and labor unit costs are the company's top near-term concern, requiring ongoing price negotiation and operational adjustment to maintain profitability and workforce retention.
• Operational risk: The company's quarterly profit profile remains concentrated in the second quarter, with weaker Q3 profitability due to the seasonal lull in construction activity and scheduled training for new graduates and existing staff in the second half of the fiscal year.

No question and answer section was included in the provided earnings call transcript.