Daiseki (9793) Q4 2025 earnings summary

Executive summary

• Achieved record highs in net sales and profits at the parent level, driven by increased market share, strong recycled fuel sales, and robust performance in industrial waste, wastewater treatment, soil remediation, and lead recycling.

• Consolidated net sales for FY Feb 2025 were ¥67.3 billion, down 2.7% year-over-year, but exceeded initial forecasts; operating profit was ¥14.3 billion, down 3.3% year-over-year.

• All business activities are reported under a single environment-related segment.

• Expansion of operating bases and new business initiatives, including entry into waste plastic recycling and ammonia capture, are underway as part of VISION2030.

• Domestic market share in wastewater treatment reached 25.6%, with 270 new factory transactions in FY Feb 2025.

Financial highlights

• Net sales: ¥67.3 billion (-2.7% YoY); operating profit: ¥14.3 billion (-3.3% YoY); net income: ¥9.3 billion (-1.6% YoY); ordinary profit: ¥14.8 billion (-4.0% YoY).

• Gross profit margin: 33.3%–33.4%; operating margin: 21.2%.

• Basic earnings per share was ¥193.37, nearly flat year-over-year.

• Total assets increased to ¥113.6 billion, net assets to ¥93.9 billion, and capital adequacy ratio was 74.2%.

• Cash and cash equivalents at year-end were ¥30.1 billion, up ¥1.2 billion from the previous year.

Outlook and guidance

• FY Feb 2026 consolidated forecast: net sales ¥70.0 billion (+4.0% YoY), operating profit ¥15.7 billion (+9.6% YoY), net income ¥9.9 billion (+6.3% YoY), and EPS ¥205.91.

• Medium-term plan targets net sales of ¥81.0 billion and operating profit of ¥18.0 billion by FY Feb 2028.

• VISION2030 aims for net sales of ¥150.0 billion, operating profit of ¥25.0 billion, and ROE of 15% by FY Feb 2031.

• Dividend forecast for FY2026 is ¥72.00 per share, unchanged from FY2025.

• Management expects continued business expansion, focusing on environmental awareness and high value-added projects.