Dai-Ichi Cutter Kogyo (1716) Q4 2026 earnings summary

Executive summary

• FY2026 revenue fell 0.7% to ¥20,089 million, mainly as highway-related construction work declined; operating profit was nearly flat, while net income attributable to owners rose 20.5%.

• FY2027 guidance projects revenue growth of 3.0% and operating profit growth of 18.5%, while net income is forecast to decline 8.8% without the prior-year extraordinary gain.

Financial highlights

• Gross profit was ¥6,175 million, up 5.9%, and gross margin improved to 30.7% from 28.8%; operating profit was ¥1,645 million, down 0.1%.

• Ordinary profit rose 5.3% to ¥1,886 million; net income attributable to owners rose 20.5% to ¥1,600 million, supported by a gain on sale of investment securities.

• SG&A expenses rose 8.3% to ¥4,529 million, while cost of sales fell 3.4% to ¥13,914 million.

• Cash and cash equivalents were ¥8,655 million, up from ¥8,209 million; the equity ratio remained 86.4%.

Outlook and guidance

• FY2027 forecast: revenue ¥20,700 million (+3.0%), operating profit ¥1,950 million (+18.5%), and ordinary profit ¥2,090 million (+10.8%).

• Net income is forecast at ¥1,460 million (–8.8%) and EPS at ¥129.79 (–8.7%); the dividend forecast is ¥45 per share, unchanged.

• Public and private sector sales are expected to remain firm; higher revenue and improved construction efficiency are expected to support operating profit growth.

• FY2027 dividend payout ratio target is 34.7%; policy maintains a payout ratio of at least 30%.