Kyoritsu Maintenance (9616) Q4 2025 earnings summary

Executive summary

• Achieved record-high profits for the second consecutive year, with net sales of JPY 228.9 billion (up 12.2% YoY), operating income of JPY 20.4 billion (up 22.6% YoY), and net income of JPY 14.5 billion (up 17.3% YoY), driven by strong inbound tourism and effective price optimization.

• Annual dividend increased 55.1% to JPY 38 per share, with a payout ratio of 20.4%.

• Growth supported by robust demand in dormitory and hotel businesses, real estate securitization, and equity method gains.

• All core businesses—dormitory, hotel, and resort—reported significant sales and profit growth.

• Real estate securitization resumed after three years, supporting capital recycling.

Financial highlights

• Net sales reached JPY 228.9 billion, up 12.2% YoY; operating income at JPY 20.4 billion, up 22.6%; net income at JPY 14.5 billion, up 17.3%.

• EPS increased to JPY 186.6; ROE at 15.7%; equity ratio improved to 33%.

• Cash flows from operating activities at JPY 29.4 billion; capital investment surged 168.4% to JPY 48 billion.

• Interest-bearing debt increased to JPY 149.2 billion; cash and deposits at JPY 25.6 billion.

• Year-end dividend: JPY 38 per share (up 55.1% YoY, payout ratio 20.4%).

Outlook and guidance

• FY March 2026 forecast: net sales JPY 274 billion (up 19.7%), operating income JPY 25 billion (up 22%), net income JPY 18 billion (up 23.6%), dividend JPY 46 per share (up 21.1%).

• Aggressive new openings planned: 12 dormitory facilities (1,364 rooms), 4 Dormy Inn hotels (637 rooms), and 2 resort hotels (306 rooms).

• Resort business net sales expected to rise 8.9% to JPY 60.35 billion, with operating income up 13.6%.

• Plans to enhance digital transformation and pursue sustainability initiatives.

• Medium-term plan targets 10% net sales and 30% operating income CAGR through 2028.