Nihon Dengi (1723) Q4 2026 earnings summary

Executive summary

• Achieved record high earnings across all management indicators, driven by robust construction demand and improved profitability from higher margins.

• Net sales rose 7.7% year-over-year to ¥46,371 million for the fiscal year ended March 31, 2026, with operating profit up 29.6% to ¥11,821 million and profit attributable to owners up 31.6% to ¥8,442 million.

• Comprehensive income increased to ¥9,621 million from ¥6,546 million year-over-year.

• ROE reached 19.6%, reflecting strong capital efficiency.

• Orders received and backlog both hit record highs, supporting future growth.

Financial highlights

• Gross profit increased to ¥21,963 million from ¥18,656 million year-over-year, with gross profit margin improving to 47.4% from 43.3%.

• Operating income increased 29.6% year-over-year to ¥11,821 million, with margin up 4.3 pts to 25.5%.

• Net profit grew 31.6% year-over-year to ¥8,442 million.

• Cash and cash equivalents at year-end were ¥13,585 million, up from ¥10,746 million.

• Equity-to-asset ratio improved to 76.7% from 74.7%.

Outlook and guidance

• FY2027 net sales forecasted at ¥51,500 million (+11.1% YoY), operating income at ¥12,500 million (+5.7% YoY), and profit attributable to owners at ¥8,700 million (+3.0% YoY).

• Basic earnings per share forecast for FY2027 is ¥136.51.

• Dividend per share expected to rise to ¥56 (post-split basis).

• ROE target for FY2027 set at 18.4%.