KFC (3420) Q4 2026 earnings summary

Executive summary

• Revenue for the year ended March 2026 was ¥25.54 billion (¥25,548 million), down 2.0% year-over-year, with ordinary profit at ¥1.17 billion (down 19.5%), operating income at ¥1,080 million (down 20.5%), and net income at ¥1,044 million (up 4.7%).

• Completed construction, especially seismic-related projects, progressed steadily, but a decline in product sales led to lower overall revenue.

• Profitability was impacted by higher raw material and labor costs, as well as delays in some large projects.

• The construction industry faced persistent challenges such as high material costs and labor shortages, but public and private investment remained stable.

• For the year ending March 2027, revenue is forecast to rise 5.7% to ¥27.0 billion, with ordinary profit up 36.2% to ¥1.6 billion, operating income up 38.8% to ¥1,500 million, and net income up 3.4% to ¥1,080 million.

Financial highlights

• Revenue: ¥25.54 billion (down 2.0% year-over-year).

• Ordinary profit: ¥1.17 billion (down 19.5% year-over-year); operating income: ¥1,080 million (down 20.5%); net income: ¥1,044 million (up 4.7%).

• Segment performance: Fastener business revenue ¥8.15 billion (down 0.3%), Civil engineering materials ¥7.08 billion (down 7.5%), Construction business ¥11.37 billion (up 0.5%).

• Gross margin declined due to higher raw material and labor costs; gross profit was ¥6,585 million.

• Total assets increased to ¥29,961 million, and equity ratio improved to 74.0%.

Outlook and guidance

• FY2027 revenue forecast: ¥27.0 billion (up 5.7% year-over-year), ordinary profit forecast: ¥1.6 billion (up 36.2%), operating income forecast: ¥1,500 million (up 38.8%), net income forecast: ¥1,080 million (up 3.4%).

• Dividend per share is projected to rise from ¥65 to ¥70.

• Growth expected from high-value-added product sales, expansion into new seismic reinforcement markets, and enhanced technical proposal sales.

• Cost management and productivity improvements targeted to offset expected increases in raw material and logistics costs.

• The company aims to enhance capital efficiency and organizational strength through DX and growth investments.