KDDI (9433) Q4 2025 earnings summary

Executive summary

• Revenue and profit increased year-over-year in FY March 2025, driven by growth in telecommunications, finance, IoT, and the Lawson alliance, while pursuing a satellite growth strategy and digital transformation initiatives.

• Strategic focus on integrating digital data, AI, and expanding 5G, including direct satellite-to-smartphone services and sovereign AI infrastructure.

• Multi-brand strategy with AU, UQ Mobile, and Povo, targeting different customer segments and leveraging partnerships with Lawson and SpaceX.

• Commitment to maximizing enterprise value through innovation, digital transformation, and collaboration with partners.

• Major alliances and acquisitions, including Lawson and Mitsubishi Corporation, support business growth.

Financial highlights

• FY March 2025 operating revenue was ¥5,918 billion (+2.8% YoY), operating income ¥1,118.7 billion (+16.3% YoY), and profit attributable to owners ¥685.7 billion (+7.5% YoY).

• Gross profit rose 3.2% to ¥2,508,376 million; SG&A expenses declined 5.1% to ¥1,426,974 million.

• Share buybacks totaled ¥400 billion in FY March 2025.

• Lawson contributed ¥19.4 billion to profit; financial business operating income up 20.7% YoY.

• Free cash flow dropped to ¥68,939 million, mainly due to the Lawson acquisition.

Outlook and guidance

• FY March 2026 targets: operating revenue ¥6,330 billion (+7.0% YoY), operating income ¥1,178 billion (+5.3% YoY), profit attributable to owners ¥748 billion (+9.1% YoY), EPS ¥194.38.

• Dividend per share for FY March 2026 set at ¥80, up 10.3% YoY, with a payout ratio of 41.2%, marking 24 consecutive years of DPS growth.

• Continued focus on mobile revenue growth, DX business expansion, and value-added services.

• Aim for double-digit sales growth in digital infrastructure and IoT/data center expansion.

• Stock split (2-for-1) effective April 1, 2025.