Totech (9960) Q4 2025 earnings summary

Executive summary

• Net sales and operating profit reached record highs in FY3/25, with both sales and profits increasing year-over-year, achieving mid-term management plan targets one year ahead of schedule.

• Net sales rose 10.8% year-over-year to ¥155,958 million, marking the 14th consecutive year of sales growth amid a challenging construction industry environment.

• Operating profit increased 48.3% to ¥14,691 million, with profit attributable to owners of parent up 59.8% to ¥11,194 million year-over-year.

• Growth was driven by strong demand from redevelopment projects in large cities, increased capital investment in private factories and data centers, and robust performance in both product sales and construction segments.

• Instrumentation business contributed significantly to profit growth due to higher technical capabilities and improved gross margins.

Financial highlights

• FY3/25 net sales: ¥155.9bn (YOY +10.8%), operating profit: ¥14.6bn (YOY +48.3%), ordinary profit: ¥15.5bn (YOY +47.1%), profit attributable to owners: ¥11.1bn (YOY +59.8%).

• Gross profit margin hit a record 26.9%, up 2.3pt from the previous year.

• Shareholders’ equity ratio increased to 58.2% (up 5pt YOY).

• ROE reached 19.5%, PBR at 2.49x.

• Cash and cash equivalents at year-end rose to ¥13,046 million, up ¥4,522 million from the prior year.

Outlook and guidance

• FY3/26 forecast: net sales ¥160.0bn (+2.6%), operating profit ¥15.0bn (+2.1%), ordinary profit ¥15.8bn (+1.5%), profit attributable to owners ¥10.7bn (-4.4%).

• Large-scale redevelopment projects expected to continue, but rising material and logistics costs and higher SG&A from salary increases anticipated.

• The company will focus on human capital investment, ESG initiatives, strengthening core business, and overseas expansion.

• Dividend forecast for FY3/26 is ¥104 per share, maintaining a 40% payout ratio.