TRUSCO Q3 FY2026: Sales jump 12%, but profit growth trails

TRUSCO reported revenue of ¥266.081 billion for January-September 2026, up 12.1% from a year earlier. Operating profit rose 4.9% to ¥17.986 billion, while net income attributable to owners of the parent increased 4.4% to ¥12.1 billion. Profit growth lagged revenue growth as cost pressures mounted.

• Gross profit margin: 20.6%, down from 20.9% a year earlier. Higher sales did not translate into an improved margin.
• Selling, general and administrative expenses: ¥36.956 billion, up 13.5% year on year, as freight and packaging costs, salaries and bonuses, and depreciation increased.
• EBITDA: ¥23.692 billion, up 11.3% year on year, outpacing operating profit growth.
• Ordinary profit and earnings per share: Ordinary profit rose 3.4% to ¥17.534 billion. Earnings per share for the period increased to ¥183.50 from ¥175.75 a year earlier.

Sales were supported by steady demand tied to AI and semiconductors, as well as increased sales of work supplies and environmental and safety products. However, higher shipment volumes lifted freight and packaging costs, while a July 2025 base-pay revision, increased housing allowances, and depreciation on a new core system and logistics centers weighed on earnings. Investments in logistics and personnel are supporting sales growth, but are currently pressuring margins.

Revenue increased across all four routes. The e-business route, which serves online retailers, led growth, while the core factory route also posted double-digit sales growth.

The Factory route generated revenue of ¥173.607 billion, up 10.1% year on year, and ordinary profit of ¥12.336 billion, up 6.1%. TRUSCO expanded inventory and promoted the use of MRO Stocker and Yuukuru, while sales of work supplies and environmental and safety products used in factory operations increased.

The e-business route posted revenue of ¥66.444 billion, up 17.7%, and ordinary profit of ¥5.782 billion, up 12.5%. Linking product and inventory data for about 4.15 million items with customers' systems helped expand sales by improving delivery speed and search functionality.

• Home center route: Revenue was ¥23.269 billion, up 11.9% year on year. E-commerce support and sales-floor proposals helped win orders, but higher costs turned ordinary profit of ¥224 million a year earlier into an ordinary loss of ¥276 million.
• Overseas route: Revenue increased 12.6% to ¥2.760 billion, and ordinary profit rose 25.1% to ¥254 million. TRUSCO pursued local sourcing, new local business accounts and deeper cooperation with existing customers.

The e-business route recorded the fastest sales growth of the four, with data integration and logistics services supporting expansion. The home center route, by contrast, posted a loss despite higher revenue, underscoring the need to manage costs so sales growth translates into profit.

TRUSCO left its forecast for the year ending December 2026 unchanged from the announcement made on August 7. The company expects revenue to rise, but projects operating profit and net income below the previous year's levels, reflecting logistics-site and labor costs.

Revenue for the first half rose 12.6% year on year. TRUSCO expects demand for work supplies driven by the Middle East situation to ease in the second half, but still anticipates results will be broadly in line with plan. Depreciation at new logistics centers and higher salaries and bonuses following the base-pay revision are expected to continue, leaving a gap between sales growth and earnings recovery.

Total assets stood at ¥321.830 billion at the end of September, an increase of ¥13.471 billion from the end of December 2025. The equity ratio edged up to 60.5% from 60.4% at the previous fiscal year-end.

The increase in assets was mainly driven by higher product inventories and additions to buildings and machinery. Investment in logistics facilities advanced, while borrowings also increased. TRUSCO did not prepare a quarterly consolidated cash flow statement, so operating cash flow for the period cannot be confirmed from the earnings release. The company plans an annual dividend of ¥61, up ¥1 from the previous year, with a higher interim payout but a lower year-end dividend. The release did not mention a share buyback.

TRUSCO continues to combine inventory, logistics and digital tools to improve delivery speed and convenience. In 2026, it opened new logistics sites and broadened supply arrangements in collaboration with customers and suppliers.

• Expanding logistics facilities: Planet Aichi in Kitanagoya, Aichi Prefecture, began operations in May, followed by the HC East Japan Logistics Center in Sanjo, Niigata Prefecture, in August.
• Direct delivery and consolidated shipments: TRUSCO is promoting use of “Niawase + Yuchoku,” a service that consolidates multiple products into one package for direct delivery to users, with the aim of shortening lead times and reducing delivery workloads.
• Customer collaboration: In January, the company established an inventory-holding branch at SMC's Tono Supplier Park to enable prompt delivery of indirect materials to local suppliers.
• Meeting on-site needs: TRUSCO launched its personal cooling box, “Do Hiemo Box,” for heatstroke prevention, targeting demand at factories, construction sites and other workplaces.

These initiatives aim not only to expand sales but also to improve delivery lead times and reduce customers' distribution workloads. New facilities strengthen supply capacity, but also add fixed costs such as depreciation. Improving utilization and generating profit from the services will be key.

TRUSCO cites resource prices and interest rate trends as potential headwinds. The earnings challenge is whether the company can absorb higher logistics, labor and investment costs even as sales grow.

• Middle East situation and resource prices: Persistently high resource prices could raise customers' raw-material and energy costs, affecting demand and procurement conditions. TRUSCO also expects demand for work supplies related to the Middle East situation to ease.
• Rising interest rates: Higher rates could dampen customer investment and business sentiment. TRUSCO also uses borrowings, making any increase in interest costs a factor to watch.
• Logistics, labor and depreciation costs: Higher shipments are increasing freight and packaging costs, while pay revisions are lifting salaries and bonuses. Depreciation is also rising at new logistics centers and for systems. If cost increases continue, profit growth could lag sales growth.
• Differences in route profitability: The home center route moved into an ordinary loss despite higher revenue. Pricing and cost management will be important to turn sales growth into profit across all routes.

Investment in inventory and logistics to improve customer convenience is a source of competitive strength, but fixed-cost burdens could become heavier if demand slows. Investors will want to see whether these investments pay off through better delivery quality and expanded business, while monitoring margins and profitability by route.