Sanko Techno (3435) Q4 2026 earnings summary

Executive summary

• Achieved consolidated revenue of ¥21,760 million for FY2026, up 2.4% year-over-year, with operating income rising 39.9% to ¥1,793 million and net income attributable to parent increasing 43.2% to ¥1,592 million.

• Segment growth was driven by strong performance in functional materials and improved profitability in engineering and fastening.

• Advanced mid-term plan focusing on human resource development, optimization, and new business creation.

Financial highlights

• Revenue: ¥21,760 million (+2.4% YoY), Operating income: ¥1,793 million (+39.9% YoY), Net income: ¥1,592 million (+43.2% YoY), Ordinary profit: ¥1,856 million (+39% YoY).

• Operating margin improved to 8.2% from 6.0% year-over-year; ordinary margin: 8.5%; net margin: 7.3%.

• Functional materials segment sales grew 21.2% year-over-year to ¥4,516 million.

• Free cash flow increased to ¥628 million from ¥34 million year-over-year; cash and equivalents at year-end were ¥4,702 million, up ¥761 million.

• EPS: ¥201.24 (basic), ¥199.71 (diluted), both up from the prior year.

Outlook and guidance

• FY2027 revenue forecast at ¥24,000 million (+10.3% YoY), with operating income expected to decrease 1.3% to ¥1,770 million and net income projected to decline 21.5% to ¥1,250 million.

• Focus on expanding fastening and functional materials businesses, emphasizing solution sales and new product development.

• Continued uncertainty due to geopolitical risks, energy prices, and labor shortages in construction.