OYO (9755) Q4 2025 earnings summary

Executive summary

• Net sales rose to ¥76.3 billion (103.0% YoY), but operating profit declined to ¥4.11 billion (93.8% YoY) due to one-time repair costs and a weaker international segment.

• Profit attributable to owners increased to 108.0% YoY, driven by gains from the sale of strategic shareholdings.

• Segment strategy and balance sheet optimization advanced under the Medium-Term Business Plan.

Financial highlights

• Orders fell to ¥77.3 billion (96.7% YoY) due to delays in offshore wind power tenders and international headwinds.

• Gross profit increased to ¥23.6 billion (102.9% YoY), with a stable gross margin of 31.0%.

• Operating profit dropped to ¥4.1 billion (93.8% YoY), impacted by higher SG&A and repair costs.

• ROE improved to 5.6% (+0.3pt YoY), supported by shareholding sales.

• Cash and deposits rose to ¥23.4 billion, mainly from shareholding sales.

Outlook and guidance

• FY12/26 forecast: Net sales to decrease to ¥75.0 billion (98.3% YoY), but operating profit to rise to ¥4.2 billion (102.2% YoY).

• Gross margin expected to improve to 33.3% (+2.3pt YoY).

• Profit attributable to owners projected to fall to ¥3.9 billion (90.0% YoY) as shareholding sales taper off.

• ROE forecast at 5.0%, below the 6.0% medium-term target.