Mory Industries (5464) Q4 2025 earnings summary

Executive summary

• Revenue for the fiscal year ended March 2025 was ¥46,141 million, down 3.7% year-over-year, with operating profit at ¥5,396 million (down 8.5%) and net income attributable to shareholders at ¥4,128 million (down 8.7%).

• Results exceeded initial forecasts due to stable stainless pipe volumes and higher-than-expected sales prices in the first half.

• Construction material demand remained weak, and competition from low-priced imports increased.

• Cash and cash equivalents at year-end decreased by 13.2% to ¥15,933 million.

• The company increased its year-end dividend from ¥100 to ¥130 per share, executed a share buyback, and completed a 5-for-1 stock split effective April 1, 2025.

Financial highlights

• Operating margin was 11.7%, down from 12.3% the previous year.

• ROE was 7.5%, down 1.1 percentage points year-over-year.

• Equity ratio improved to 79.5%, up from 77.6% year-over-year.

• EPS was ¥106.95, down from ¥116.41 year-over-year (adjusted for stock split).

• Gross margin improved slightly to 24.5% from 23.8% year-over-year.

Outlook and guidance

• For the fiscal year ending March 2026, revenue is forecast at ¥45,800 million (down 0.7%), operating profit at ¥4,600 million (down 14.8%), and net income at ¥3,400 million (down 17.6%).

• Global economic uncertainty, including geopolitical risks and potential recession, is expected to keep demand flat and sales prices under pressure.

• Cost increases in labor and logistics are anticipated to compress margins.

• Strategic focus areas include strengthening pipe competitiveness, production efficiency, and new factory construction.