HIKARI TSUSHIN (9435) Q4 2025 earnings summary

Executive summary

• Achieved record-high revenue and operating profit for FY ended March 2025, with operating profit exceeding 100 billion yen for the first time.

• Revenue rose 14.1% year-over-year to 686.6 billion yen, driven by strong performance in Electricity, Insurance, and increased customer contracts.

• Operating profit increased 11.1% to 105.0 billion yen; profit attributable to owners of parent declined 3.8% to 117.5 billion yen.

• Investment earnings yield reached 15.8% with look-through earnings up 38% year-over-year.

• Dividend per share increased, marking 15 consecutive years of growth.

Financial highlights

• Revenue rose 14% year-over-year to 686.5 billion yen; recurring operating profit up 10% to 167.1 billion yen.

• Operating profit increased 11% to 105.0 billion yen; net income attributable to owners of parent declined 3% to 117.5 billion yen.

• Comprehensive income dropped 39% to 162.1 billion yen, impacted by lower unrealized gains.

• Basic earnings per share was 2,671 yen; equity attributable to owners of parent rose to 914.7 billion yen.

• Cash and cash equivalents at year-end were 470.3 billion yen.

Outlook and guidance

• FY ending March 2026 revenue forecasted to rise 10% to 760.0 billion yen; recurring operating profit to 187.0 billion yen (+11%).

• Operating profit projected at 115.0 billion yen (+9%); net income expected to decline 14% to 100.0 billion yen due to FX assumptions.

• Customer acquisition cost (excluding one-time items) expected to rise 15%.

• Targeting 15% CAGR in recurring operating profit over the next decade, driven by 10% organic growth and M&A.

• Growth expected from increased customer contracts and recurring operating profit.