DKK Co (6706) investor relations material

Executive summary

• Net sales rose 8.8% year-over-year to ¥35,446 million, with operating income up 30.4% to ¥1,219 million and profit attributable to shareholders surging 144.9% to ¥1,903 million, driven by strong Telecommunications performance, especially in Defense and Mobile Communications.

• Orders received increased 11.8% year-over-year, supported by robust telecommunication demand and selective recovery in radio frequency segments.

• The first year of the medium-term DKK-Plan2028 progressed smoothly, with ROE targets achieved ahead of schedule and a focus on structural reforms, resource optimization, and sustainability.

Financial highlights

• Net sales rose 8.8% YoY to ¥35,446 million; operating income up 30.4% to ¥1,219 million; net income attributable to shareholders increased 144.9% YoY to ¥1,903 million.

• Ordinary profit increased 16.7% YoY to ¥1,196 million; comprehensive income reached ¥1,949 million, reversing a prior-year loss.

• ROE improved to 5.2% from 2.1% YoY; operating margin improved to 3.4% from 2.9% YoY.

• Gross profit increased 2.5% YoY to ¥7,190 million; basic EPS increased to ¥214.12 from ¥83.36.

• Annual dividend increased to ¥100 per share, with a payout ratio of 46.7%.

Outlook and guidance

• FY2027/3 forecasts: net sales to rise 3.0% to ¥36,500 million, operating income up 35.3% to ¥1,650 million, and ROE to reach 6.1%.

• Profit attributable to owners of parent forecast at ¥2.3 billion (+21.7%); dividend forecast for next year is ¥105 per share.

• Telecommunications segment expected to maintain growth; Radio Frequency segment to recover; extraordinary gain anticipated from asset handover.

• Continued focus on profit-generating structure and growth through the DKK-Plan2028.