TOKYO KEIKI (7721) Q4 2026 earnings summary

Executive summary

• Achieved record-high operating and ordinary profits for the second consecutive year, with all profit items increasing year-over-year, mainly driven by strong Defense & Communications Equipment sales and steady growth across all business segments.

• Order backlog at period-end reached a record high, reflecting strong demand across segments.

• Strategic focus on improving earning power, expanding business domains, and strengthening management foundation under the Medium-term Business Plan and Vision 2030.

• Investments in R&D, digital transformation, and human capital, including head office relocation to support future growth.

• FY2026 guidance targets record-high net sales and a third consecutive record-high operating profit.

Financial highlights

• FY2025 net sales: ¥61,186 million (+6.1% YoY); operating profit: ¥5,362 million (+10.4% YoY); ordinary profit: ¥5,492 million (+9.8% YoY); profit attributable to owners: ¥4,005 million (+5.5% YoY).

• Operating profit margin improved to 8.8% (+0.3pt YoY).

• Comprehensive income increased 37.7% YoY to ¥5,730 million.

• Order backlog at year-end: ¥59,875 million (+6.1% YoY).

• FY2026 forecast: net sales ¥68,300 million (+11.6% YoY), operating profit ¥6,400 million (+19.4% YoY), profit attributable to owners ¥5,000 million (+24.8% YoY), EPS ¥304.27.

Outlook and guidance

• FY2026 expects significant sales and profit growth, especially in Defense & Communications Equipment, with a 19.5% sales increase and 49.3% operating profit increase expected.

• Operating profit margin forecast to rise to 9.4%.

• Dividend per share planned to increase to ¥48 for FY2027.

• Exchange rate assumption: JPY 151/USD.