Nextage Q3 FY2026: profit surges 66.7%, full-year forecast maintained

For the cumulative third quarter of fiscal 2026 (December 1, 2025 to August 31, 2026), Nextage delivered revenue of ¥600,422 million, up 26.0% year on year, operating profit of ¥21,624 million, up 66.7%, ordinary profit of ¥20,187 million, up 62.7%, and net income attributable to owners of ¥13,845 million, up 74.9%. The operating margin improved to 3.6% from 2.7% a year earlier, reflecting scale expansion and cost efficiency. Total vehicle unit sales rose 17.7% to 390,074 units, with double-digit growth in all regions. The Kanto-Koshinetsu region led with revenue of ¥171,270 million, up 31.2%, as urban buy-only network expansion gained traction. Progress against the full-year forecast was 80.5% for revenue and 78.3% for operating profit.

Nextage operates as a single reportable segment for automobile sales and related business, but its operations are split between used-car and new-car sales. As of end-August 2026, the company had 199 used-car locations (312 stores) and 52 new-car locations (55 stores), for a total of 251 locations (367 stores). Compared with the previous fiscal year-end, used-car locations rose by 9, while new-car locations were flat; total store count increased by 14, with buy-only store openings concentrated in Kanto-Koshinetsu and Kansai.

Regional sales grew across all areas.

Domestic registrations of used cars grew only 100.8% year on year, so Nextage substantially outperformed the market through store openings and enhanced vehicle purchasing.

Total assets stood at ¥261,872 million at the end of August 2026, up ¥35,095 million from ¥226,777 million at the prior fiscal year-end. The increase mainly reflected working capital expansion tied to sales growth: inventories rose to ¥100,281 million (up ¥11,776 million) and accounts receivable rose ¥6,292 million. Interest-bearing debt increased, with long-term borrowings due within one year up ¥17,037 million and ¥5,000 million of bonds due within one year recognized. Net assets reached ¥89,862 million, for an equity ratio of 34.3%, slightly lower than 34.9% at the prior year-end, though retained earnings accumulation added ¥10,667 million. The company raised its full-year dividend forecast to ¥50 per share (from ¥45 paid in the prior year), maintaining an upward trend in shareholder returns. No new share buyback was announced. A quarterly cash flow statement was not prepared, but depreciation totaled ¥5,288 million and goodwill amortization came to ¥173 million.

External risks include Middle East geopolitics, natural disasters, and financial market volatility. The used-car market itself is growing only modestly, with domestic registrations at 100.8% year on year. Nextage's growth remains heavily dependent on store openings, and selling, general and administrative expenses rose 8.1% year on year to ¥74,638 million. If new stores take longer to reach profitability, margins could be pressured. Interest expenses climbed 27.1% to ¥896 million, reflecting rising interest rates and larger interest-bearing debt. Used-car price fluctuations and intensifying competition that pushes up purchase costs are additional concerns. The key challenges ahead are fine-tuning the pace of store openings and improving the profitability of existing locations.