Mitani Corporation (8066) Q4 2025 earnings summary

Executive summary

• Revenue increased 4.4% year-over-year to ¥339,005 million, driven by higher sales prices in construction materials, strong ODA and spice business, and robust demand in information systems, especially for POS upgrades and educational market projects.

• Operating income rose 21.5% year-over-year to ¥31,508 million, with gains from price pass-through in construction materials, strong gondola and ODA project demand, and improved profitability in the spice segment.

• Net income attributable to shareholders grew 4.7% year-over-year to ¥19,022 million.

Financial highlights

• Gross profit increased to ¥60,190 million (up 10.7% year-over-year), with gross margin improving to 17.8%.

• Operating margin rose to 9.3% from 8.0% the previous year.

• Net margin remained stable at 5.6%.

• Cash and equivalents at year-end were ¥106,325 million, up from ¥99,885 million.

• Dividend per share increased to ¥66 (from ¥55), with a payout ratio of 29.7%.

Outlook and guidance

• For the next fiscal year, revenue is forecast to decrease by 5.6% to ¥320,000 million, mainly due to expected lower crude oil prices.

• Operating income is projected at ¥30,000 million (down 4.8%), and net income at ¥18,500 million (down 2.7%).

• Key growth drivers include continued demand for gondola renovations, PC/system upgrades due to Windows 10 EOL, and improved profitability in construction materials.

• Risks include potential US tariffs on spices, ODA project timing, increased competition in Malaysian tire business, and delayed price pass-through for rising input costs.