Nippon Densetsu Kogyo (1950) Q4 2026 earnings summary

Executive summary

• FY2025 orders reached a third consecutive record; net sales, operating profit, ordinary profit, parent-attributable profit, and year-end backlog each set a second consecutive record.

• Solid public investment, recovering private capex, urban redevelopment, data-center construction, and railway safety investment supported demand.

• Comprehensive income rose 91.7% to ¥26.915bn.

Financial highlights

• FY2025 net sales were ¥229.207bn, up 5.7% YoY; gross profit was ¥40.923bn, with a 17.9% margin.

• Operating profit rose 31.4% to ¥23.560bn, with a 10.3% margin versus 8.3%; ordinary profit rose 30.3% to ¥25.278bn.

• Profit attributable to owners of parent rose 36.9% to ¥18.060bn; orders were ¥267.369bn and backlog carried forward was ¥224.253bn.

• Results exceeded January forecasts by ¥0.837bn in sales, ¥1.290bn in operating profit, and ¥1.270bn in parent-attributable profit.

• Basic earnings per share increased to ¥309.26 from ¥223.84; cash and cash equivalents were ¥33.710bn at year-end.

Outlook and guidance

• FY2026 net sales are forecast at ¥242.310bn (+5.7% YoY); operating profit ¥23.890bn (+1.4%), ordinary profit ¥25.710bn (+1.7%), and parent-attributable profit ¥18.470bn (+2.3%).

• FY2026 gross profit is forecast at ¥42.960bn with a 17.7% margin; SG&A rises 9.8% to ¥19.070bn, while the operating margin eases to 9.9%.

• Orders are forecast to decline 5.1% to ¥253.860bn after FY2025 large-scale orders; opening backlog is ¥224.253bn and closing backlog is forecast at ¥239.081bn.

• Forecasts include office-relocation and higher expenses; growth in completed construction and improved construction profitability are expected to offset some cost increases.

• FY2026 dividends are planned at ¥127/share; the three-year plan targets a 40% payout ratio and continued early reduction of strategically held shares.