NIPPON KANZAI Holdings Co (9347) Q4 2025 earnings summary

Executive summary

• Net sales reached a record ¥139,868 million for FY25, up 14.0% year-over-year, driven by contract renewals and expanded construction-related services.

• Operating profit rose 4.9% to ¥8,678 million, and profit attributable to owners increased 2.6% to ¥5,829 million.

• Comprehensive income was ¥7,244 million, up 21.6% year-over-year.

• Stable growth supported by a stock-based business model with long-term contracts, resilient to macroeconomic shocks.

Financial highlights

• Gross profit increased 45.9% year-over-year to ¥39,589 million.

• Ordinary income rose 10.6% to ¥9,094 million.

• SG&A expenses rose 63.9% to ¥30,911 million, reflecting higher personnel costs and expanded operations.

• Free cash flow improved to ¥3,506 million, up ¥951 million year-over-year.

• EPS improved to ¥157.62 from ¥151.95 year-over-year.

Outlook and guidance

• FY26 net sales forecast at ¥148,000 million (+5.8% YoY), with operating profit expected to reach ¥8,700 million (+0.2% YoY) and profit attributable to owners up 4.6% to ¥6,100 million.

• Dividend forecast for FY26 is ¥54 per share, maintaining a payout ratio above 32%.

• The company plans to expand PFI, public facility management, and pursue M&A domestically and internationally.

• Risks include construction delays from raw material price increases, FX volatility, and labor shortages.