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

Executive summary

• Revenue and profit increased year-over-year, with operating revenue of ¥5,918.0 billion (+2.8% YoY), operating income of ¥1,118.7 billion (+16.3% YoY), and net profit of ¥685.7 billion (+7.5% YoY), driven by growth in mobile, finance, IoT, and contributions from Lawson.

• Advanced mid-term and Satellite Growth Strategies, integrating 5G, AI, and digital transformation to enhance connectivity and value creation.

• Expanded 5G coverage, launched direct satellite-to-smartphone services, and strengthened multi-brand strategies.

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

• Maintained strong communication quality, recognized as world’s number one connected experience by Opensignal, and expanded Starlink Direct services.

Financial highlights

• Operating revenue: ¥5,918.0 billion (+2.8% YoY); operating income: ¥1,118.7 billion (+16.3% YoY); net profit: ¥685.7 billion (+7.5% YoY).

• Gross profit increased 3.2% YoY to ¥2,508,376 million.

• Share buybacks totaled ¥400 billion, with a planned tender offer for up to ¥350 billion.

• FY March 2026 forecast: revenue ¥6,330.0 billion (+7.0% YoY), operating income ¥1,178.0 billion (+5.3% YoY), net profit ¥748.0 billion (+9.1% YoY), and basic EPS ¥194.38.

• Basic earnings per share rose to ¥169.33 from ¥150.63, adjusted for the stock split.

Outlook and guidance

• Aims for continued revenue and profit growth in FY March 2026, driven by Satellite Growth Strategy, value-added services, and ongoing investments in 5G, AI, and digital infrastructure.

• Targeting EPS of ¥194.38 (CAGR 6.0% from FY19-03) and ROE in the 14% range (excluding financial business).

• Dividend forecast for FY2026 is ¥80.00 per share (post-split), with a payout ratio of 41.2%.

• Plans to achieve double-digit sales growth in Business Services, with IoT and data centers expected to increase revenue by ¥50 billion.

• Continued focus on maximizing enterprise value and shareholder returns.