TANAKEN (1450) Q4 2025 earnings summary

Executive summary

• Revenue for the year ended March 2025 rose 15.1% year-over-year to ¥12,286 million, with operating profit up 44.8% to ¥2,328 million and net profit up 44.6% to ¥1,576 million, driven by robust demand in the demolition sector and improved productivity on large projects.

• Achieved year-over-year increases in both revenue and profit, despite revenue falling short of plan due to delays in large projects; profitability improved thanks to higher productivity from larger projects.

• Maintained a strong financial position with no interest-bearing debt, high cash reserves, and a 72% equity ratio.

• Executed mid-term plan focusing on brand enhancement, workplace improvements, and maintained a strong order backlog despite some project delays.

Financial highlights

• Revenue for FY2025/3 was ¥12,286 million, up ¥1,610 million year-over-year but ¥714 million below plan.

• Operating profit reached ¥2,328 million, up ¥728 million year-over-year and exceeding plan by ¥728 million.

• Net income was ¥1,576 million, up ¥486 million year-over-year and ¥476 million above plan.

• Gross margin improved as sales increased from ¥10,676 million to ¥12,286 million, and operating profit margin rose from 15.1% to 19.0% year-over-year.

• EPS rose to ¥181.21 from ¥125.33, reflecting higher profitability and a stock split adjustment.

Outlook and guidance

• FY2026/3 targets revenue of ¥14,000 million, operating profit of ¥1,700 million, and net income of ¥1,200 million, with profit expected to decline due to increased investment in personnel and foundational initiatives.

• Focus remains on building foundations in human resources, technology, and alliances, with continued brand recognition efforts.

• Recruitment remains challenging; personnel targets have been revised downward.

• The company plans to maintain a year-end dividend of ¥55 per share.