Kurabo Industries (3106) Q4 2026 earnings summary

Executive summary

• Net sales declined 4.6% year-over-year to ¥143.7bn, but net profit rose 42.8% to ¥12.8bn, driven by extraordinary gains from asset sales and sale of cross-shareholdings.

• Operating profit fell 11% YoY to ¥9.1bn, but exceeded medium-term plan and latest forecasts.

• Comprehensive income surged 130% YoY to ¥23.99bn, reflecting strong gains in valuation difference on available-for-sale securities.

• Dividend per share increased to ¥307, up ¥127 YoY, with a further increase to ¥331 forecast for FY3/27 (pre-split basis).

Financial highlights

• Net sales: ¥143.7bn (-4.6% YoY); Operating profit: ¥9.1bn (-11.0% YoY); Net profit: ¥12.8bn (+42.8% YoY).

• Gross profit margin improved to 21.5% from 21.0% YoY; gross profit was ¥30.88bn.

• Basic earnings per share increased to ¥781.89 from ¥516.19 YoY.

• Operating cash flow rose to ¥14.6bn; investing cash flow positive at ¥1.4bn due to asset sales.

• Cash and cash equivalents at year-end were ¥15.49bn, up from ¥15.16bn.

Outlook and guidance

• FY3/27 forecasts: Net sales ¥154.0bn (+7.1% YoY), operating profit ¥11.2bn (+22.0%), net profit ¥13.0bn (+1.0%).

• Profits at each stage expected to reach record highs, driven by recovery in high-performance plastic products.

• Dividend forecast for FY3/27 is ¥331 per share (pre-split), with a 5-for-1 stock split planned in October 2026.