CTI Engineering Co (9621) Q4 2025 earnings summary

Executive summary

• Orders received increased 16.2% year-over-year to JPY 109.7 billion, driven by strong domestic and overseas demand, while sales rose 3.4% to JPY 101.0 billion, marking record highs.

• Operating income decreased 2.8% year-over-year to JPY 9.1 billion, and net income attributable to owners dropped 11.8% to JPY 6.0 billion, reflecting higher SG&A expenses and lower overseas segment profit.

• Shareholder returns included a dividend of JPY 75 per share (35% payout ratio) and treasury share buybacks, with a total return ratio of 45.4%.

• The company launched its Mid-Term Management Plan 2027, focusing on business portfolio transformation and foundation rebuilding for growth.

Financial highlights

• Orders received: JPY 109.7 billion (+16.2% YoY); sales: JPY 101.0 billion (+3.4% YoY).

• Operating income: JPY 9.1 billion (-2.8% YoY); operating margin: 9.0% (-0.6pt YoY).

• Net income attributable to owners: JPY 6.0 billion (-11.8% YoY); net income per share: JPY 214.45.

• Cash and equivalents at year-end: JPY 15.0 billion (+JPY 0.4 billion YoY).

• Dividend per share was JPY 75.00 (post-split), with a payout ratio of 35.0%.

Outlook and guidance

• FY2026 targets: sales JPY 105.0 billion (+3.9% YoY), operating income JPY 10.5 billion (+14.9% YoY), net income JPY 7.0 billion (+17.6% YoY).

• Focus on increasing profitability by reducing cost ratios and SG&A, improving utilization rates, and accelerating business portfolio transformation.

• Aims to achieve ROE of 12% or more by 2027, with continued growth investments and shareholder returns.