JFE Systems (4832) Q4 2025 earnings summary

Executive summary

• FY2025 net sales reached a record ¥63,972 million, up 3.1% YoY; operating profit rose 2.5% to ¥7,589 million and profit attributable to owners rose 9.5% to ¥5,442 million.

• Operating margin held at 11.9%; operating cash flow increased to ¥8,741 million from ¥7,369 million.

• Infrastructure, Industry Solutions and manufacturing-industry SCM demand supported growth, offsetting lower JFE Group and ERP Solutions sales; FY2026 guidance anticipates lower results as steelworks refresh work winds down.

Financial highlights

• Gross profit increased 2.1% to ¥15,084 million; SG&A rose 1.6% to ¥7,495 million, mainly reflecting recruitment and human-resource development.

• Ordinary profit increased 2.9% to ¥7,667 million; orders received grew 2.9% to ¥67,059 million and backlog rose 13.5% to ¥25,885 million at March 31, 2025.

• Higher sales and project mix, pricing improvements and cost reductions offset higher labor, salary-improvement, recruitment and training expenses.

• Total assets rose to ¥53,066 million from ¥46,915 million; net assets increased to ¥34,145 million from ¥30,034 million.

Outlook and guidance

• FY2026 forecast: net sales ¥58,620 million, down 8.4%; operating profit ¥6,300 million, down 17.0%; ordinary profit ¥6,400 million, down 16.5%; profit attributable to owners ¥4,260 million, down 21.7%.

• Sales are forecast to decline ¥5,352 million, principally from a ¥7,953 million reduction in JFE Group sales as Steelworks System Refresh Project workload falls ahead of completion by FY2026.

• Sales growth is expected in Infrastructure (+6.4%), Industry Solutions (+8.2%), ERP Solutions (+22.9%), Smart Solutions (+5.2%) and Digital Manufacturing (+6.0%).

• FY2026 SG&A is forecast to rise 11.2% to ¥8,338 million, reflecting reskilling, recruitment and training, workforce development and stronger sales activity.

• The FY2026 financial forecast was revised from the most recently announced forecast.