Eiwa (9857) Q4 2026 earnings summary

Executive summary

• Achieved record-high results for the fiscal year ended March 2026, with revenue up 3.6% to ¥48,846 million, operating profit up 6.8% to ¥2,975 million, and net income attributable to shareholders rising 5.9%.

• Growth was driven by strong sales to shipbuilding, chemical, and steel industries, and increased demand for DX, GX, and social infrastructure solutions, despite declines in social infrastructure and manufacturing equipment sales.

• The company focused on high-value-added solutions, digital transformation, and green transformation initiatives.

• Temporary decrease in operating cash flow and cash reserves due to shorter payment terms and increased advances.

• Entering an investment phase to strengthen growth foundations, with a focus on human capital, education, and internal DX.

Financial highlights

• Revenue: ¥48,846 million (+3.6% YoY); Operating profit: ¥2,975 million (+6.8% YoY); Net income attributable to parent: ¥2,070 million (+5.9% YoY); Ordinary profit: ¥3,044 million (+6.7% YoY).

• Gross profit increased by 6.3% to ¥8,699 million; comprehensive income rose 48.3% to ¥2,571 million.

• Cash and deposits decreased by ¥1,055 million to ¥5,039 million due to increased payments and advances.

• Equity ratio improved to 57.9% (from 51.2% YoY); net assets increased by ¥2,033 million.

• Sales growth led by shipbuilding, chemical, and steel sectors; special vehicles sales declined due to supply chain delays.

Outlook and guidance

• FY2027 revenue forecast: ¥48,500 million (down 0.7% YoY); operating profit: ¥2,660 million (down 10.6% YoY); net income: ¥1,850 million (down 10.6% YoY).

• Sales expected to remain stable, but profits to temporarily decline due to increased investment in human capital, DX, and higher personnel costs.

• Continued robust demand in DX, GX, and social infrastructure; some risk from geopolitical and supply chain uncertainties.

• ROE target maintained at 11% or higher over the medium term.

• Annual dividend projected to remain at ¥96 per share.