Riken Keiki (7734) Q4 2026 earnings summary

Executive summary

• Net sales rose 12.6% year-over-year to ¥55,212 million, driven by domestic construction, robust semiconductor sector demand, and strong sales in North America and China.

• Operating profit increased 16.8% to ¥12,425 million, with margin improving to 22.5% due to productivity gains and revised sales prices despite higher labor and raw material costs.

• Net profit attributable to owners of parent grew 24.3% to ¥9,957 million, with earnings per share up to 217.32 yen.

• Comprehensive income reached ¥11,707 million, up 36.2% year-over-year.

Financial highlights

• Net sales: ¥55,212 million (up from ¥49,038 million YoY).

• Operating profit: ¥12,425 million (up 16.8% YoY).

• Ordinary profit: ¥13,443 million (up 24.1% YoY).

• Gross profit improved to ¥27,163 million from ¥24,627 million year-over-year.

• Dividend per share increased to 55 yen, with a payout ratio of 25.3%.

Outlook and guidance

• FY2027 net sales forecast: ¥60,000 million (+8.7%), with growth expected from semiconductor and North American markets.

• Operating profit forecast to rise to ¥12,700 million (+2.2%), though margin expected to dip to 21.2% due to strategic investments.

• Net profit forecast: ¥9,600 million (-3.6% YoY); EPS: 211.19 yen; annual dividend per share: 60 yen.

• The business environment remains uncertain due to geopolitical risks, exchange rate fluctuations, and rising costs.

• Focus areas include expanding overseas market share, especially in semiconductors, and improving productivity to offset cost pressures.