Sanko Techno (3435) Q4 2025 earnings summary

Executive summary

• Revenue for the fiscal year ended March 2025 was ¥21,250 million, a 0.5% increase year-over-year, but operating income declined 38.0% to ¥1,282 million and net income attributable to shareholders dropped 35.5% to ¥1,122 million.

• Operating margin fell to 6.0%.

• The company launched a new mid-term plan focused on human resource development, optimization, and new business creation.

• Segment profit in the Fastening business fell despite stable sales; Functional Materials saw higher sales but posted a segment loss.

Financial highlights

• Fastening business sales: ¥17,685 million (down 0.7% year-over-year); segment profit: ¥2,465 million (down 10.5%).

• Functional Materials business sales: ¥3,564 million (up 7.2% year-over-year); segment loss: ¥260 million due to inventory write-downs and M&A costs.

• Ordinary profit: ¥1,305 million (down 36.1% year-over-year).

• EPS: ¥142.05 (down from ¥220.24 year-over-year).

• Free cash flow turned positive at ¥33 million, up ¥219 million from the previous year.

Outlook and guidance

• FY2026 revenue forecast: ¥22,000 million (+3.5% year-over-year); operating income: ¥1,650 million (+28.7%); net income projected at ¥1,160 million (+3.3%).

• Medium-term plan targets revenue of ¥24,000 million and operating margin of 7.4% by FY2027.

• The company expects continued uncertainty due to global political and economic instability, energy price volatility, and labor shortages in construction.