KFC (3420) Q4 2025 earnings summary

Executive summary

• Revenue for the fiscal year ended March 2025 increased by 4.0% year-over-year to ¥26.07 billion, driven by strong orders in large-scale projects and high value-added tunnel excavation materials.

• Recurring profit declined by 15.2% year-over-year to ¥1.45 billion due to rising personnel and selling expenses.

• Operating income declined 16.2% year-over-year to ¥1,358 million due to higher personnel and SG&A costs.

• Net income attributable to shareholders fell 15.3% year-over-year to ¥997 million.

• The outlook for the fiscal year ending March 2026 projects revenue of ¥26.5 billion (+1.6% YoY) and recurring profit of ¥1.55 billion (+6.2% YoY), supported by expansion into new seismic reinforcement markets and continued demand for high value-added products.

Financial highlights

• Segment sales: Fastener business ¥8.17 billion (+5.7% YoY), Civil engineering materials ¥7.65 billion (-6.7% YoY), Construction business ¥11.31 billion (+11.6% YoY).

• Segment profits: Fastener ¥705 million (-11.8% YoY), Civil engineering materials ¥395 million (-39.8% YoY), Construction ¥359 million (-29.5% YoY).

• Comprehensive income dropped 24.7% year-over-year to ¥1,074 million.

• Operating cash flow decreased significantly due to changes in payment terms and increased inventory.

• Dividend per share for the year was ¥65 (including a ¥15 commemorative dividend), with a payout ratio of 48.0%.

Outlook and guidance

• FY2026 guidance: Revenue ¥26.5 billion (+1.6% YoY), recurring profit ¥1.55 billion (+6.2% YoY), operating income ¥1,450 million (+6.7% YoY), net income ¥1,070 million (+7.3% YoY).

• Dividend for FY2026 is projected at ¥60 per share.

• Growth expected from high value-added product sales, expansion into new seismic reinforcement markets, and steady construction backlog.

• Continued cost pressures from raw materials and logistics, with strengthened cost management and price adjustments planned.