Daiwabo Holdings (3107) Q4 2025 earnings summary

Executive summary

• Net sales reached a record ¥1.13 trillion for FY ended March 2025, up 17.5% year-over-year, driven by strong IT investment and Windows 10 replacement demand.

• Operating income rose 12.7% to ¥34.9 billion; net income surged 477.9% to ¥24.8 billion, reflecting recovery from prior year’s extraordinary losses.

• Dividend per share increased to ¥90, with a total payout ratio of 73.3%; completed ¥10 billion treasury share buyback.

• Comprehensive income increased 267.3% year-over-year to ¥27,219 million.

• Minimal impact from ransomware incident in FY2025, but some effects expected to continue into FY2026.

Financial highlights

• Net sales: ¥1,136,817 million (+17.5% YoY); operating income: ¥34,899 million (+12.7% YoY); net income: ¥24,751 million (+477.9% YoY, due to absence of prior year’s extraordinary loss).

• Gross profit increased to ¥79,796 million; SG&A expenses decreased to ¥44,896 million.

• Ordinary profit rose 12.8% YoY to ¥35,454 million.

• Cash and cash equivalents at year-end: ¥55,221 million, down from ¥69,172 million, mainly due to treasury share purchases and increased inventories.

• Book value per share: ¥1,693.24 (+¥174.69 YoY).

Outlook and guidance

• FY2026 net sales forecast: ¥1,265,800 million (+11.3% YoY); operating income: ¥38,500 million (+10.3% YoY); net income: ¥26,700 million (+7.9% YoY).

• Basic earnings per share forecast for FY2026 is ¥297.26.

• Dividend per share forecast for FY2026: ¥100; total payout ratio target of 60% or more.

• PC shipment demand expected to remain high in 1H FY2026 due to Windows 10 end-of-support and GIGA School Phase 2.