Seika (8061) Q4 2025 earnings summary

Executive summary

• Net sales rose 8.0% year-over-year to ¥93.73 billion, operating profit increased 16.3% to ¥6.48 billion, and ordinary profit surged 32.7% to ¥8.29 billion.

• Profit attributable to owners of parent jumped 73.7% to ¥7.79 billion, driven by gains from negative goodwill and sale of cross-shareholdings.

• Transaction value rose 41.4% year-over-year to ¥290.44 billion.

• Order backlog increased 16.6% to ¥66.76 billion, reflecting strong recovery in Industrial Machinery and continued strength in Energy.

• Comprehensive income declined 17.4% year-over-year to ¥7,192 million.

Financial highlights

• Gross profit improved to ¥25,261 million from ¥22,658 million year-over-year.

• Operating margin increased to 6.9% from 6.4% year-over-year.

• EPS rose to ¥649.7, with adjusted EPS at ¥232, excluding temporary factors.

• Cash and cash equivalents at period end increased to ¥16,775 million from ¥10,428 million.

• Free cash flow improved to ¥8.88 billion, mainly due to asset sales.

Outlook and guidance

• FY2026 net sales forecast at ¥105.0 billion (+12.0%), operating profit at ¥6.60 billion (+1.7%), but ordinary profit and profit attributable to owners of parent expected to decline due to absence of one-time gains.

• Medium-term plan targets net sales of ¥120.0 billion and operating profit of ¥7.0 billion by FY2026, with long-term vision aiming for ¥180.0 billion and ¥12.0 billion, respectively, by FY2030.

• Full-year dividend forecast raised to ¥220 per share, a 70-yen increase year-over-year.