KVK Corporation (6484) Q4 2026 earnings summary

Executive summary

• Achieved record-high revenue of ¥30,899 million for the fiscal year ended March 2026, up 4.2% year-over-year, driven by increased orders for mainstay single-lever and thermostat faucets despite a challenging housing market.

• Operating profit rose to ¥2,711 million (+1.9% YoY), with net income at ¥2,189 million (+3.7% YoY).

• Strategic initiatives included product enhancements, quality improvements, and strengthened sales and production systems.

• Sales targets were met, but operating margin and ROE fell short due to rising raw material and procurement costs.

Financial highlights

• Revenue: ¥30,899 million (+4.2% YoY); Operating profit margin was 8.8%; Ordinary income: ¥3,074 million (+0.1% YoY); Net income: ¥2,189 million (+3.7% YoY).

• Comprehensive income surged 69% to ¥3,104 million.

• EPS: ¥273.01 (vs. ¥264.03 prior year); dividend per share increased to ¥80 (from ¥75), payout ratio 29.3%.

• Quarterly: Q3 saw slight sales/profit growth; Q4 sales rose 4.6% but operating profit dropped 21% YoY due to cost pressures.

• Gross margin declined as cost of goods sold ratio rose to 74.9% (+0.6pt YoY); SG&A ratio remained stable.

Outlook and guidance

• FY2027 forecast: revenue ¥31,500 million (+1.9%), operating profit ¥2,800 million (+3.3%), ordinary income ¥3,200 million (+4.1%), net income ¥2,200 million (+0.5%).

• Expects growth from high value-added products and includes gains from partial sale of investment securities.

• Management expects continued cost pressures from raw materials and currency volatility, but aims to strengthen cost competitiveness and stable supply.

• Dividend to increase to ¥85 per share (up from ¥80), continuing 17 years of no dividend cuts.