USS Co., Ltd. (4732): FY2025 Results Summary — Record Highs Across All Profit Lines

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

USS Co., Ltd. (4732), operator of Japan’s largest used vehicle auction network, reported record results for FY2025 (FY3/2026, from April 1, 2025 to March 31, 2026). Net sales rose 9.5% year on year to ¥113.8 billion and operating profit increased 10.4% to ¥59.8 billion, with record-high net sales, operating profit, ordinary profit and profit attributable to owners of parent. Growth was driven by the core auto auction business, where vehicles consigned reached 3.50 million (up 9.4% YoY). The company also announced a facility share repurchase (Japanese ASR) of approximately JPY 18.0 billion.

Consolidated Results (Full-Year Actual)

Net sales were up 9.5% YoY to ¥113.8 billion, operating profit was up 10.4% to ¥59.8 billion, and profit attributable to owners of parent was up 9.9% to ¥41.3 billion. Results also exceeded the revised plan announced on February 10, 2026: net sales came in at 101.7% of the plan and operating profit at 103.2%. The operating margin was 52.6% of sales, up from 52.1% in FY2024. The equity ratio stood at 76.7%.

Item (million yen)	FY2024	FY2025	Year on year
Net sales	104,021	113,854	109.5%
Gross profit	64,821	71,451	110.2%
Operating profit	54,206	59,847	110.4%
Ordinary profit	54,883	60,590	110.4%
Profit attributable to owners of parent	37,636	41,360	109.9%

Segment Results

In the auto auction segment, sales and earnings increased mainly because of the larger number of vehicles consigned and contracted and higher fees resulting from an increase in the fee for successful bids submitted using the dedicated terminal. Vehicles consigned totaled 3.504 million (up 9.4% YoY), contract completions were 2.347 million (up 9.4% YoY), and the contract completion rate was 67.0% (67.0% in FY2024). Successful bid fees rose 14.2% to ¥34,856 million. The average price of vehicles contracted remained high, and in February 2026 reached a record 1,380 thousand yen. In the used vehicle purchasing and selling segment, despite a decrease in the number of vehicles sold, sales declined while earnings increased due to factors such as the robustness of auction prices. In the recycling segment, increased orders for large plant demolition projects led to higher sales and earnings.

Segment	Metric (million yen)	FY2024	FY2025	Year on year
Auto auction	Net sales	81,843	89,702	109.6%
Auto auction	Operating profit	53,274	58,584	110.0%
Used vehicle purchasing and selling	Net sales	12,651	12,470	98.6%
Used vehicle purchasing and selling	Operating profit	276	380	137.7%
Recycling	Net sales	8,407	10,292	122.4%
Recycling	Operating profit	542	673	124.1%
Other	Net sales	1,119	1,388	124.1%
Other	Operating profit	23	61	266.5%
Total	Net sales	104,021	113,854	109.5%
Total	Operating profit	54,206	59,847	110.4%

FY2026 Forecast

The FY2026 forecast is based on the outlook for a recovery in sales of new cars and a larger number of vehicles consigned at auctions. The goal is a larger market share by making substantial capital expenditures at major auction sites and other locations. USS plans for 3.56 million vehicles consigned at auctions, 2.36 million contracted vehicles, and a contract completion ratio of 66.3%. Capital expenditures of about ¥40.0 billion are planned as a two-year total for FY2026-FY2027. By segment, net sales are forecast at ¥93,010 million for auto auction (103.7% of FY2025), ¥13,077 million for used vehicle purchasing and selling (104.9%), ¥12,008 million for recycling (116.7%) and ¥1,703 million for other (122.7%).

Item (million yen)	FY2025 (Actual)	FY2026 (Forecast)	VS. previous year
Net sales	113,854	119,800	105.2%
Operating profit	59,847	61,000	101.9%
Ordinary profit	60,590	61,800	102.0%
Profit attributable to owners of parent	41,360	41,600	100.6%
EPS (yen)	88.78	91.35	102.9%

Shareholder Returns

USS plans to pay a dividend of 54.7 yen per share for FY2025 and forecasts 55.0 yen per share for FY2026, both based on a consolidated payout ratio of at least 60%. FY2026 would mark the 27th consecutive year of dividend increases since listing. The policy for shareholder distributions targets a total payout ratio of at least 100% from FY2025 to FY2027. In addition, to further reinforce its commitment to shareholder returns, USS implemented a facility share repurchase by SMBC Nikko (Japanese ASR): on May 13, 2026, USS planned to complete the repurchase of 10,332,900 shares (approximately JPY 18.0 billion) through the ToSTNeT-3 system. The company cited an immediate improvement in earnings per share and a strong message to the market as background for adopting the scheme.

Item	FY2025	FY2026 (Forecast)
Dividend per share	¥54.7 (plan)	¥55.0
Consolidated payout ratio policy	at least 60%	at least 60%
Total payout ratio policy	at least 100% (FY2025 to FY2027)	at least 100% (FY2025 to FY2027)

Medium-Term Plan / Topics

USS focuses resources on market share growth in the core auto auction business for higher profitability of the entire USS Group, with a medium/long-term market share goal of 50% (the company’s share of the used car auction market was 43.2% in calendar 2025). The company raised its ROE goal from 15% or higher to 20% or higher and its dividend payout ratio goal from at least 55% to at least 60%. Under its cash allocation policy for the three-year period FY2025-FY2027, operating cash flow of about ¥140 billion plus about ¥30 billion in cash and other sources of liquidity are allocated to earnings distributions of about ¥120 billion and investments for growth of about ¥50 billion. Main growth investments include the Tokyo site rebuild (about ¥20 billion, after FY2027), a new building and expanded parking facility at the HAA Kobe site (about ¥15 billion, after FY2027), a new building at the Fukuoka site (about ¥2 billion, after FY2027), auto auction IT systems (about ¥5 billion through FY2027) and the ARBIZ resource recycling business (¥3 billion), with a Recycling Business sales goal of ¥20.0 billion in FY2028. In January 2026, the Yokohama auction site was newly constructed.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.