Chudenko (1941) Q4 2026 earnings summary

Executive summary

• Achieved record-high consolidated net sales and operating profit for FY2025, with net sales up 2.7% to ¥227,850 million and operating profit up 20.7% to ¥26,180 million, driven by large-scale construction projects, cost management, and growth in Indoor electrical and Distribution line work.

• Ordinary profit grew 17.2% year-over-year to ¥27,474 million, while profit attributable to owners of parent declined 7.1% to ¥18,482 million due to a reactionary increase in income taxes after a one-time tax benefit from the dissolution of an equity-method affiliate in the prior year.

• Orders received at the parent level rose 20% year-over-year, with notable increases in factories, schools, and hospitals.

Financial highlights

• Gross profit increased from ¥38,928 million to ¥44,797 million year-over-year, and gross profit margin improved to 19.7% from 17.5%.

• Comprehensive income rose 40.4% year-over-year to ¥30,999 million.

• Free cash flow increased to ¥22.0 billion from ¥11.2 billion in the previous year.

• Cash and cash equivalents at year-end increased to ¥43,605 million, up ¥9,170 million from the previous year.

• Equity-to-asset ratio remained strong at 76.9%.

Outlook and guidance

• FY2026 consolidated net sales forecast: ¥245.0 billion (+8% YoY); operating profit: ¥27.0 billion (+3% YoY); ordinary profit: ¥29.5 billion (+7% YoY); profit attributable to owners of parent: ¥19.7 billion (+7% YoY).

• Net sales growth expected from both parent and subsidiaries, despite a forecasted decrease in orders received.

• Revised Medium-Term Plan targets: FY2027 net sales ¥260.0 billion, operating profit ¥28.0 billion, ROE 8.5% or higher; FY2030 vision targets net sales ¥300.0 billion, operating profit ¥30.0 billion, ROE 9.0% or higher.

• Annual dividend per share is projected to increase to ¥140.

• The business environment is expected to remain solid but uncertain due to high raw material prices, labor shortages, and geopolitical risks.