DKK Co (6706) Q4 2025 earnings summary

Executive summary

• Structural reforms and the medium-term plan led to a significant turnaround, with net sales up 12.9% year-over-year to ¥32,582 million and a return to profitability after a prior-year loss.

• Operating profit reached ¥935 million, reversing a prior-year loss, and orders received rose 8.4% to ¥34,776 million, reflecting improved demand in priority segments.

• Both Telecommunication and Radio Frequency segments posted higher sales and profits, driven by focus on defense and capital expenditure demand.

• Profitability improved through cost reductions, organizational streamlining, and targeted resource allocation to growth areas.

• Net income attributable to shareholders was ¥777 million, compared to a loss of ¥1,977 million in the previous year.

Financial highlights

• Net sales rose to ¥32,582 million (+12.9% YoY); operating income reached ¥935 million from a loss of ¥1,787 million.

• Ordinary income improved to ¥1,024 million; net income per share was ¥83.36.

• Gross profit increased by 68.2% YoY to ¥7,014 million, with operating margin rising to 2.9%.

• ROE improved from -5.0% to 2.1% year-over-year.

• Total assets decreased to ¥53,084 million; cash and cash equivalents at year-end were ¥14,016 million, down from ¥17,330 million.

Outlook and guidance

• FY3/26 forecasts net sales of ¥33,000 million (+1.3% YoY), but operating income is expected to decline to ¥700 million (–25.2% YoY) due to higher costs and weaker Radio Frequency demand.

• Ordinary profit forecast at ¥800 million (–21.9% YoY), net income at ¥600 million (–22.8% YoY).

• Telecommunication segment expected to remain strong, while Radio Frequency faces headwinds from U.S. tariff policy and auto sector weakness.

• ROE forecast to decrease to 1.6% in FY3/26.

• Plans to maintain annual dividends at ¥80 per share, with interim and year-end dividends of ¥40 each.