Koike Sanso Kogyo (6137) Q4 2025 earnings summary

Executive summary

• Revenue for the year ended March 2025 was ¥55,206 million, up 7.4% year-over-year, with operating profit at ¥5,448 million (+26.3%), ordinary profit at ¥6,046 million (+17.4%), and net profit attributable to shareholders at ¥3,633 million (+18.9%).

• The machinery segment drove growth with strong sales of fiber laser cutting machines and overseas expansion, while the gas and welding materials segments faced mixed results due to cost pressures and demand fluctuations.

Financial highlights

• Gross margin improved as sales growth outpaced cost increases, with operating margin at 9.9% and ordinary margin at 10.9%.

• Comprehensive income decreased 37.3% year-over-year to ¥4,520 million due to lower other comprehensive income.

• Cash and equivalents at year-end were ¥16,493 million, up ¥303 million from the previous year.

• Dividend for the year was ¥260 per share (pre-split), with a payout ratio of 30.1%.

Outlook and guidance

• FY2026 revenue is forecast at ¥55,000 million (down 0.4% year-over-year), with operating profit of ¥5,100 million (down 6.4%) and net profit of ¥3,200 million (down 11.9%).

• Management highlights risks from global economic uncertainty, cost inflation, and currency fluctuations, but plans to strengthen product development and overseas sales.

• Post-split dividend forecast for FY2026 is ¥48 per share.