Techno Ryowa Ltd (1965) Q4 2025 earnings summary

Executive summary

• FY25 revenue, operating profit, ordinary profit and net income reached records, supported by strong domestic construction and capital-investment demand.

• Revenue rose 14.3% to ¥84.19bn; operating profit rose 66.2% to ¥9.629bn and net income rose 61.0% to ¥7.256bn.

• FY26 guidance projects further revenue and profit growth, with a higher dividend and planned share repurchases.

Financial highlights

• FY25 gross profit was ¥17.425bn, up 37.3% YoY; operating profit margin improved to 11.4% from 7.9%.

• Ordinary profit was ¥9.935bn, up 55.9%; EPS rose 64.7% to ¥344.90.

• Orders rose 24.5% to ¥103.043bn and backlog increased 33.0% to ¥76.395bn.

• Industrial equipment work added ¥3.76bn and general building work ¥0.91bn to operating profit; higher SG&A reduced profit by ¥0.90bn.

• Equity ratio improved to 66.0% from 64.5%; net margin rose to 8.6% from 6.1%.

Outlook and guidance

• FY26 forecast: revenue ¥90.0bn (+6.9%), operating profit ¥10.1bn (+4.9%), ordinary profit ¥10.4bn (+4.7%) and net income ¥7.3bn (+0.6%).

• FY26 orders are forecast to decline 18.5% to ¥84.0bn, reflecting large project wins in the prior year.

• FY26 segment revenue forecasts: industrial equipment ¥58.7bn, general building ¥27.5bn and electrical/refrigeration ¥3.8bn; personnel and DX costs weigh on profit.

• FY27 mid-term targets raised to ¥91.0bn revenue and ¥10.5bn ordinary profit, from ¥81.0bn and ¥6.0bn; ROE and PBR targets remain 10%+ and 1.0x+.

• Management expects stable construction investment but remains cautious amid global economic uncertainty.