Kanamoto (9678) Q4 2024 earnings summary

Executive summary

• Net sales for FY2024 reached ¥207,218 million, up 4.9% year-over-year, with operating profit at ¥14,569 million, up 21.8%, and profit attributable to owners at ¥9,013 million, up 34.1%.

• Growth was driven by steady construction investment, strong demand for rental equipment, and effective profit structure improvements.

• The company advanced its Medium-Term Plan, focusing on optimizing rental pricing, asset utilization, and DX enhancement.

• Construction Equipment Rental Business accounted for 88.9% of total sales, with strong growth in West Japan and Hokkaido regions.

• Cash and cash equivalents increased by ¥5,493 million to ¥50,586 million at year-end.

Financial highlights

• Operating profit margin improved to 7.0% in FY2024 from 6.1% in FY2023.

• EBITDA for FY2024 was ¥61,714 million, reflecting robust operational performance.

• Total assets rose to ¥322,853 million, with net assets at ¥149,713 million.

• Equity ratio improved to 43.4% in FY2024.

• Earnings per share increased to ¥253.72 from ¥185.40 year-over-year.

Outlook and guidance

• FY2025 guidance projects net sales of ¥211,100 million (+1.9%), operating profit of ¥15,100 million (+3.6%), and EPS of ¥266.49 (+5.0%).

• The medium-term plan targets net sales of ¥235,400 million and operating profit of ¥21,000 million by FY2029, with ROE over 8%.

• The new Medium-Term Plan emphasizes growth strategies, DX enhancement, and sustainability.

• Management expects steady construction investment but notes risks from rising costs and geopolitical factors.