CMC Corporation (2185) Q4 2025 earnings summary

Executive summary

• FY2025 revenue decreased by 6.5% year-over-year to ¥18,256 million, with operating profit down 9.4% to ¥2,694 million, mainly due to decreased sales in the core manuals business, but operating profit still exceeded internal forecasts.

• Net income attributable to shareholders rose 3.4% year-over-year to ¥2,149 million, aided by the absence of one-time costs and gains from investment securities sales.

• Profitability was supported by growth in group companies and cost controls, offsetting weaker performance in the non-consolidated segment.

• A new organizational structure and enhanced use of GenAI are being implemented to optimize information delivery and support future growth.

• Domestic market sales increased 14.7%, but overseas sales dropped 25.3%.

Financial highlights

• Net sales for FY2025 were ¥18,256 million, down 6.5% year-over-year but 1.4% above forecast.

• Operating profit was ¥2,694 million, a 9.4% decrease year-over-year but 12.3% above forecast.

• Ordinary profit rose 0.7% year-over-year to ¥3,205 million, and profit attributable to owners increased 3.4% to ¥2,149 million.

• EPS increased to ¥164.12, up ¥7.40 year-over-year.

• Gross profit margin was 37.8%, operating margin 14.8%, and net profit margin 11.8%.

Outlook and guidance

• FY2026 guidance projects net sales of ¥20,000 million (+9.6% YoY) and operating profit of ¥3,000 million (+11.3% YoY).

• EPS is forecast to rise to ¥169.97, with ROE expected at 9.8%.

• Interim dividend forecast is ¥27.00, with a full-year dividend of ¥55.00 per share.

• Focus remains on implementing a compelling business model, expanding the information utilization platform, and leveraging digital transformation and AI-driven value creation.