• Reliable momentum from a resilient model – JES delivered steady
organic growth in Q1–2 FY3/26 and remains on track to reach its
20% operating margin target (pre–goodwill amortization) on a
sustainable basis, in our view. Maintenance contracts and
modernization unit volumes continued to grow at double-digit YoY
rates, underscoring ongoing organic customer acquisition. The
company is investing in engineers, building sufficient capacity to
drive maintenance contract growth. Despite this increased cost,
quarterly reported OPM reached a record high of 19.5% in Q2
FY3/26, highlighting continued upside in margin expansion driven
by productivity enhancements and economies of scale.
