Maruichi Steel Tube (5463) Q4 2025 earnings summary

Executive summary

• Operating income for FY2024 was ¥22.9 billion, down 34.2% year-over-year due to lower sales volume and higher costs in Japan, compressed spreads, and inventory write-downs in the U.S.

• Net sales decreased 3.6% year-over-year to ¥261.6 billion, with declines in Japan and the U.S. offset by growth in Asia.

• Net income attributable to owners rose 3.5% to ¥27.0 billion, aided by gains on sales of investment securities despite a ¥3.85 billion extraordinary loss from restricted stock grants.

• Comprehensive income dropped 59.0% year-over-year to ¥18.1 billion, mainly due to valuation losses on securities.

• Announced a dividend of ¥131 per share for FY2024 and plans for ¥134 in FY2025, with aggressive share buybacks and a total return ratio of 89% in FY2024, targeting 99% in FY2025.

Financial highlights

• Operating income margin dropped to 8.8% from 12.8% in FY2023.

• Ordinary income fell 30.5% year-over-year to ¥26.6 billion.

• Gross profit declined from ¥53.5 billion to ¥43.8 billion year-over-year.

• Basic earnings per share increased to ¥338.28 from ¥327.81 year-over-year.

• Cash and cash equivalents at year-end rose to ¥95.1 billion from ¥77.4 billion.

Outlook and guidance

• FY2025 (ending March 2026) forecasts net sales of ¥263.9 billion (+0.9%), operating income of ¥33.6–35.5 billion (+33.2–46.6%), and net income of ¥23.4 billion (-13.4%).

• Improved earnings expected in Japan and North America, with Asia posting a slight profit decrease.

• Dividend payout ratio targeted at 45% for the mid-term plan.

• Annual dividend forecast for FY2026 is ¥134.00 per share.