Koike Sanso Kogyo (6137) Q4 2025 earnings summary

Executive summary

• FY ended Mar 2025 revenue was ¥55,206m (+7.4% YoY), with record operating profit of ¥5,448m (+26.3%) and ordinary profit of ¥6,046m (+17.4%); attributable net income rose 18.9% to ¥3,633m.

• Machinery equipment led growth through fiber-laser sales and overseas expansion; gas and welding materials faced cost pressures and demand fluctuations.

Financial highlights

• Gross profit was ¥17,867m (+14.3%); SG&A rose 9.7% to ¥12,419m. Gross margin improved to 32.4% from 30.4%.

• Operating margin was 9.9% versus 8.4%; ordinary profit margin was 11.0% versus 10.0%. Higher sales and an improved cost ratio supported ordinary profit, partly offset by higher SG&A and negative FX effects.

• Comprehensive income fell 37.3% to ¥4,520m due to lower other comprehensive income.

• Year-end cash and equivalents were ¥16,493m, up ¥303m YoY.

• FY Mar 2025 dividend was ¥260 per share before the split, with a 30.1% payout ratio.

Outlook and guidance

• FY ending Mar 2026 forecasts: revenue ¥55,000m (-0.4%), operating profit ¥5,100m (-6.4%), ordinary profit ¥5,600m (-7.4%) and net income ¥3,200m (-11.9%).

• The forecast assumes Saudi project contributions end; wage increases, hiring and higher system costs are expected to weigh on profit.

• FY Mar 2026 segment forecasts: machinery revenue/profit ¥24,700m/¥4,500m; high-pressure gas ¥20,500m/¥1,390m; welding materials ¥8,200m/¥600m; other ¥1,600m/¥210m.

• Post-split FY Mar 2026 dividend forecast is ¥48 per share; payout ratio 31.6%.

• Global economic uncertainty, cost inflation and currency fluctuations remain risks; plans include strengthening product development and overseas sales.