Nihon Dengi (1723) Q4 2025 earnings summary

Executive summary

• Achieved record high earnings across all management indicators, with net sales up 10.7% to ¥43,061 million, operating income up 46.0% to ¥9,120 million, and net profit up 37.3% to ¥6,414 million, driven by robust construction demand and improved margins.

• Surpassed long-term management guideline target of ¥9.0 billion operating income ahead of schedule.

• Comprehensive income increased 21.9% year-over-year to ¥6,546 million.

Financial highlights

• Gross profit margin improved from 37.4% to 43.3%, with gross profit rising from ¥14,536 million to ¥18,656 million.

• Operating income margin increased to 21.2% from 16.1% YoY.

• Ordinary profit grew 47.2% year-over-year to ¥9,307 million.

• Cash flows from operating activities were ¥8,135 million, with cash and cash equivalents at period end at ¥10,746 million.

• Total assets increased to ¥52,886 million and net assets to ¥39,495 million as of March 31, 2025.

Outlook and guidance

• FY2026 net sales forecasted at ¥43,500 million (+1.0% YoY), operating income at ¥9,200 million (+0.9% YoY), and profit attributable to owners of parent at ¥6,450 million (+0.6%).

• Basic earnings per share forecast is ¥405.02.

• Dividend projected at ¥132 per share (up ¥10 YoY, post-split basis).

• ROE forecasted at 15.5% for FY2026.

• Orders received expected to decrease due to selective project acceptance amid capacity constraints.