Nippon Densetsu Kogyo (1950) Q4 2026 earnings summary

Executive summary

• FY26 orders reached a record ¥267,369 million for the third consecutive year; sales, operating income, ordinary income, net income and closing backlog set records for a second consecutive year.

• FY26 sales were ¥229,207 million, operating income ¥23,560 million, ordinary income ¥25,278 million and net income attributable to owners of parent ¥18,060 million.

• Comprehensive income reached ¥26,915 million, up 91.7% year over year.

Financial highlights

• Sales rose 5.7% to ¥229,207 million; gross profit was ¥40,923 million and gross margin improved to 17.9% from 15.8%.

• Operating income increased to ¥23,560 million from ¥17,934 million; operating margin improved to 10.3% from 8.3%.

• Ordinary income was ¥25,278 million and net income attributable to owners of parent was ¥18,060 million, versus ¥19,400 million and ¥13,192 million in FY25.

• Cash and cash equivalents were ¥33,710 million; operating cash flow improved to ¥10,521 million from negative ¥4,341 million.

• Total assets were ¥333,793 million, net assets ¥230,726 million and the equity ratio 64.6% at year-end.

Outlook and guidance

• FY27 guidance: sales ¥242,310 million (+5.7%), operating income ¥23,890 million (+1.4%), ordinary income ¥25,710 million (+1.7%) and net income ¥18,470 million (+2.3%).

• FY27 orders are forecast at ¥253,860 million, down 5.1%; opening backlog rises 22.5% to ¥224,253 million and closing backlog is projected at ¥239,081 million.

• FY27 operating income guidance includes higher headquarters-relocation costs, including accelerated depreciation and temporary relocation expenses; completion growth and improved project profitability partly offset costs.

• Railway sales are forecast to rise with increased JR East repair spending; general electrical sales are projected to reach a record, supported by backlog and selective bidding.

• FY27 dividend is forecast at ¥127 per share, with a 40.1% payout ratio.