Kraftia (1959) Q4 2026 earnings summary

Executive summary

• Achieved record highs in gross profit, operating income, and profit attributable to owners for FY March 2026, with strong year-over-year growth across key metrics.

• Growth was driven by robust construction orders, especially in facilities construction, and improved gross profit margins.

• Orders and construction backlog increased, supporting future revenue streams.

• Progressed on major projects, notably the Ukujima Solar Power Plant, despite some delays and ongoing regulatory negotiations.

• Advanced Mid-term Management Plan, focusing on technology, human capital, and strategic investments.

Financial highlights

• Net sales rose 0.5% year-over-year to ¥476,123 million; gross profit up 23.2% to ¥87.1 billion.

• Operating income increased 31.9% to ¥54,600 million; ordinary income up 30.9% to ¥58,157 million.

• Profit attributable to owners surged 38.7% to ¥40,053 million; comprehensive income up 64.5% to ¥49,998 million.

• Orders grew 6.0% to ¥479,014 million; construction backlog up 4.8% to ¥476,000 million.

• Free cash flow was negative due to increased investment and dividend payments; cash and cash equivalents at year-end decreased to ¥50,548 million.

Outlook and guidance

• FY March 2027 guidance: net sales ¥500 billion, operating income ¥55.5 billion, profit attributable to owners ¥40.5 billion.

• Dividend per share maintained at ¥220, targeting a 40% payout ratio.

• Management targets for FY2029: consolidated ordinary profit ¥60 billion, ROIC ≥10%.