Dai-Ichi Cutter Kogyo (1716) Q4 2024 earnings summary

Executive summary

• Revenue and profit declined year-over-year due to the exclusion of MTN from consolidation, but the core cutting and drilling business achieved both revenue and profit growth.

• Highway-related projects and public investment remained robust, supporting stable performance.

• Net income attributable to shareholders rose 1.4% to ¥1,973 million year-over-year.

Financial highlights

• FY2024 revenue: ¥20,918 million, down 5.6% year-over-year; operating profit: ¥2,455 million, down 6.7%.

• Gross margin stable at 31.8%; gross profit: ¥6,646 million.

• Dividend per share increased to ¥38.00, payout ratio at 21.8%.

• Total assets: ¥21,858 million, equity ratio: 83.1%.

• EPS for FY2024: ¥174.38.

Outlook and guidance

• FY2025 revenue forecast: ¥21,000 million (+0.4%); operating profit: ¥2,500 million (+1.8%); net income expected to decrease to ¥1,750 million (−11.3%).

• Dividend forecast raised to ¥40 per share; payout ratio to rise to 25.8%.

• Company plans to expand in western Japan and invest in R&D, systems, and human resources.