Rengo Co (3941) Q4 2025 earnings summary

Executive summary

• Net sales rose to ¥993.3 billion for FY3/2025, up 10.3% year-over-year, driven by price revisions, strong domestic demand, and expanded business activities.

• Operating profit declined 23.5% year-over-year to ¥37.4 billion due to higher fixed and raw material costs.

• Profit attributable to owners of parent fell 12.1% to ¥29.0 billion.

• Comprehensive income fell 20.8% year-over-year to ¥47,822 million.

• Major M&A activity included the integration of Sun Tox and Mitsui Chemicals Tohcello, and overseas acquisitions in the US, India, and UAE.

Financial highlights

• Net sales: ¥993.3 billion (+10.3% year-over-year).

• Operating profit: ¥37.4 billion (-23.5% year-over-year).

• Ordinary profit: ¥39.2 billion (-18.3% year-over-year).

• EBITDA: ¥97.1 billion.

• Free cash flow: -¥20.3 billion, a decrease of ¥33.9 billion year-over-year.

Outlook and guidance

• FY3/2026 net sales forecast: ¥1,005.0 billion (+1.2%).

• Operating profit forecast: ¥40.0 billion (+6.9%).

• Profit attributable to owners of parent forecast: ¥24.0 billion (-17.2%).

• Capital expenditures planned at ¥107.5 billion, up 7.9% year-over-year.

• Annual dividend forecast remains ¥30 per share.