KDDI (9433) Q4 2025 (Q&A) earnings summary

Executive summary

• Achieved increased sales and profits for FY 2025, with operating revenue of JPY 5.918 trillion (up 2.8% YoY), operating income of JPY 1.119 trillion (up 16.3% YoY), and net profit of JPY 685.7 billion (up 7.5% YoY), driven by mobile, finance, and IoT-related services.

• Advanced mid-term and Satellite Growth Strategies, emphasizing 5G, AI integration, digital transformation, and new value creation.

• Expanded 5G coverage with over 100,000 base stations, launched au 5G Fast Lane and Starlink Direct, and strengthened multi-brand strategies.

• Executed a two-for-one stock split effective April 1, 2025, and announced significant treasury share repurchases and eliminations.

• Acquired Lawson shares, transitioning to joint management with Mitsubishi Corporation, and consolidated LAC Co., Ltd. for cybersecurity.

Financial highlights

• Operating revenue: JPY 5.918 trillion (+2.8% YoY); operating income: JPY 1.119 trillion (+16.3% YoY); net profit: JPY 685.7 billion (+7.5% YoY).

• Gross profit increased 3.2% YoY to JPY 2.508 trillion; basic EPS rose to JPY 169.33 (post-split).

• Key drivers: growth in multi-brand communications ARPU, finance, energy, equity income from Lawson, and DX/business services.

• Share buybacks of JPY 400 billion executed, with a tender offer for up to JPY 350 billion.

• Total assets increased to JPY 16.88 trillion, with interest-bearing debt rising to JPY 4.44 trillion.

Outlook and guidance

• FY 2026 forecast: operating revenue JPY 6.33 trillion (+7% YoY), operating income JPY 1.178 trillion (+5.3% YoY), net profit JPY 748 billion (+9.1% YoY), and EPS JPY 194.38.

• Dividend per share (DPS) target for FY March 2026: JPY 80 (+10.3%), with a payout ratio of 41.2%.

• Continued promotion of Satellite Growth Strategy, value-added mobile revenues, and digital transformation.

• Targeting double-digit sales growth in Business Services and further expansion in finance, energy, and IoT/data center segments.

• Aim for EPS of JPY 194.38 (+50% vs FY 2019) and ROE in the 14% range (excluding financial business) by FY March 2026.