IACE TRAVEL Corporetion.

Business Details

IACE Travel is a single-segment travel company that operates five services in total—Government & Public Services, Personal Services, US Military Services, and Overseas Services, in addition to its core corporate BTM (Business Travel Management) service. Its main customers are corporate clients, central government ministries and agencies, and US forces in Japan. The company differentiates itself through a hybrid model combining digital and human services, centered on its cloud-based business travel booking system "Smart BTM." For FY2026 (ending March 2026), full-year net sales reached ¥3,015 million (up 11.9% year on year) and operating profit reached ¥754 million (up 24.2%), achieving growth in both revenue and profit.

Recent Overview

FY2026 (ending March 2026) achieved double-digit growth across all profit items, and the company implemented its first dividend

For full-year FY2026 (ending March 2026), net sales were ¥3,015 million (up 11.9% year on year), operating profit was ¥754 million (up 24.2%), and net income was ¥529 million (up 34.2%), achieving double-digit growth across all profit items. The BTM Service served as the driving force, with all three factors—number of client companies, number of bookings, and unit price—expanding in tandem. Following the company's listing on the Tokyo Stock Exchange Standard Market in April 2025, it repaid ¥1,000 million in short-term borrowings, improving its financial structure, with the equity ratio rising from 58.4% to 74.3%. As its first year as a listed company, it implemented its first-ever year-end dividend of ¥30 (dividend payout ratio of 26.9%). For FY2027 (ending March 2027), the company forecasts net sales of ¥3,375 million and operating profit of ¥900 million.

Key Products

Growth Drivers

• Steady increase in the number of companies using the cloud-based business travel booking system "Smart BTM" (full-year average monthly number of client companies at 1,249, up 11.0% year on year), with both booking volume and unit price expanding
• Compound growth in net sales driven by an increase in BTM Service bookings (119,896, up 14.9% year on year) and a rise in unit price (¥12,923, up 4.6%)
• Increase in domestic travel and group orders in Government & Public Services (up 23.8% year on year)
• Increase in domestic package tour and group orders in US Military Services (up 16.3% year on year)
• Strengthened financial base following the April 2025 listing on the Tokyo Stock Exchange Standard Market (net assets of ¥4,290 million, equity ratio of 74.3%) and improved financial soundness through full repayment of short-term borrowings
• Gradual recovery in the number of Japanese overseas travelers (estimated at approximately 14.90 million for April 2025 to March 2026, up 10.5% year on year), boosting business travel demand

Risks

• Delayed recovery in Japanese overseas business travel demand due to continued yen depreciation (affecting Personal Services, down 8.3% year on year, and Overseas Services, down 7.0% year on year)
• Risk of rising airfares due to surging crude oil prices amid Middle East tensions (earnings forecasts are formulated on the assumption of resolution around the end of June 2026)
• Risk of reduced corporate business travel due to US trade policy and geopolitical risks
• Risk of dependence on specific products, such as the decline in overseas package tour orders in Personal Services (down 8.3% year on year)
• Risk of performance volatility at overseas subsidiaries, such as the decline in corporate travel orders at the Mexican subsidiary in Overseas Services (down 7.0% year on year)
• Risk of contract renewal through public tender bidding in Government & Public Services and US Military Services
• Additional cost burden after listing, including ongoing listing-related expenses (¥22,440 thousand recorded as non-operating expenses in FY2026, ending March 2026)