Kurabo Industries (3106) Q4 2025 earnings summary

Executive summary

• FY3/25 net sales were ¥150.660bn, down 0.4% YoY; operating profit rose 12.3% to ¥10.311bn and ordinary profit rose 15.6% to ¥11.784bn, both exceeding the revised forecast.

• Growth in semiconductor-related and functional film businesses, alongside Textile’s return to operating profitability, offset weaker casual-wear orders and lower sales following the machine-tool business transfer.

Financial highlights

• Gross profit rose 4.4% to ¥31.658bn; gross margin improved to 21.0% from 20.0%, and operating margin to 6.8% from 6.1%.

• Net income attributable to owners of parent rose 33.8% to ¥9.014bn; basic EPS increased to ¥516.19 from ¥362.50.

• Annual dividend was ¥180/share, up from ¥100, with a 34.9% payout ratio.

• Capital expenditure was ¥7.156bn and depreciation ¥5.157bn.

Outlook and guidance

• FY3/26 forecast: net sales down 4.4% to ¥144.0bn, operating profit down 22.4% to ¥8.0bn, ordinary profit down 19.4% to ¥9.5bn, and net income up 5.4% to ¥9.5bn.

• Delayed semiconductor-market recovery, higher labor and depreciation costs, and Textile restructuring weigh on operating profit; cross-shareholding sale gains support forecast net income.

• Accelerate ’27 FY3/28 targets: sales ¥165.0bn, operating profit and ordinary profit ¥13.0bn each, net income ¥11.0bn, operating margin 7.9% and ROE 10.0%.