Chofu Seisakusho (5946) Q4 2025 earnings summary

Executive summary

• Revenue increased 0.8% year-over-year to ¥46,501 million, driven by strong sales of high-efficiency water heaters and price revisions.

• Operating income declined 1.9% year-over-year to ¥1,712 million due to persistent high raw material costs.

• Net income attributable to shareholders fell 30.7% year-over-year to ¥2,174 million, impacted by a provision for product warranty losses.

• Comprehensive income rose 7.7% year-over-year to ¥4,046 million, reflecting gains in securities valuation.

Financial highlights

• Gross margin remained stable at 22.3% (¥10,361 million gross profit on ¥46,501 million sales).

• EPS was ¥63.96, down from ¥92.45 the previous year.

• Cash and equivalents at year-end were ¥3,379 million, down 6.7% year-over-year.

• Operating cash flow surged 86.2% to ¥4,807 million, mainly from reduced receivables and increased provisions.

Outlook and guidance

• For FY2026, revenue is forecast to rise 3.2% to ¥48,000 million, with operating income up 40.2% to ¥2,400 million.

• Net income is projected to increase 74.7% to ¥3,800 million, reflecting expected recovery and cost controls.

• The company plans to strengthen its lineup of high-efficiency, eco-friendly products and expand overseas sales.