JK Holdings (9896) Q4 2025 earnings summary

Executive summary

• Revenue increased 1.1% year-over-year to ¥393.3 billion, with operating profit down 6.5% and net income attributable to shareholders down 15.2%.

• Wholesaling and retail segments performed steadily in a challenging environment, with M&A in retail contributing to sales growth, while plywood manufacturing and processing posted significant losses.

• Special losses of approximately ¥300 million were recorded due to impairment losses.

• The company faced rising costs and weak housing starts but managed to keep sales near plan and exceed profit targets by 5–10%.

Financial highlights

• Consolidated revenue: ¥393.3 billion (+1.1% YoY), operating income: ¥7.36 billion (−6.5% YoY), ordinary income: ¥7.8 billion (−10.1% YoY), net income attributable to parent: ¥4.28 billion (−15.2% YoY).

• ROE: 6.9%.

• Annual dividend per share: ¥45 (payout ratio 30.4%).

• Gross margin improved to 12.1% (+0.1pt YoY).

• Cash and equivalents at period end: ¥50.3 billion.

• EPS: ¥148.18 (down from ¥174.67 YoY).

• Total assets: ¥222.97 billion (down from ¥234.56 billion YoY); equity ratio improved to 28.5%.

• Operating cash flow: ¥5.13 billion (down from ¥22.06 billion YoY); free cash flow: ¥2.6 billion.

Outlook and guidance

• FY2026 forecast: revenue ¥405.0 billion (+3.0% YoY), operating profit ¥8.0 billion (+8.7%), ordinary income ¥8.0 billion (+2.6% YoY), net income ¥5.0 billion (+16.7% YoY).

• Dividend forecast: ¥55 per share (+¥10 YoY), payout ratio target 30%+.

• Focus on expanding share in existing businesses, adjacent business expansion, and M&A.

• Targeting further improvement in unprofitable businesses.

• New mid-term plan 'Value Proposition 27' targets growth via share expansion and business domain extension.