Koike Sanso Kogyo (6137) Q4 2026 earnings summary

Executive summary

• FY26 revenue rose 0.7% to ¥55,570m, while operating profit fell 11.1% to ¥4,842m and net income declined 4.7% to ¥3,461m.

• Higher development, ERP and SG&A costs weighed on earnings; machinery remained a strong contributor, and helium liquefier sales lifted Other.

Financial highlights

• Gross profit was ¥17,595m, down 1.5%; gross margin declined to 31.7% from 32.4%.

• SG&A rose 2.7% to ¥12,753m; operating margin fell to 8.7% from 9.9%, while ordinary profit decreased 11.4% to ¥5,357m.

• Higher cost ratio reduced ordinary profit by ¥390m and higher SG&A by ¥334m, partly offset by sales growth and FX.

• Comprehensive income rose 26.4% to ¥5,714m; EPS was ¥164.04, down from ¥172.47.

Outlook and guidance

• FY27 forecast: revenue ¥56,000m (+0.8%), operating profit ¥4,800m (-0.9%), ordinary profit ¥5,300m (-1.1%) and net income ¥3,400m (-1.8%).

• FY27 segment sales/profit forecasts: Machinery ¥26,700m/¥4,970m; High-pressure Gas ¥20,500m/¥1,380m; Welding Materials ¥8,200m/¥350m; Other ¥600m/¥100m; segment profit before adjustments.

• DBC fiber lasers and shipbuilding sales are expected to remain strong, partly offset by lower Other sales; focus includes automation, new products, price revisions and hydrogen and helium businesses.

• FY27 dividend forecast is ¥50 per share, with a 31.0% payout ratio.

• Revised final-year NEXT STAGE 2026 targets: revenue ¥56bn, ordinary profit ¥5.3bn, ordinary margin 9.5%, ROE 8%, ROIC 8% and payout ratio at least 30%.