Valqua (7995) Q4 2025 earnings summary

Executive summary

• Net sales declined 2.6% year-over-year to ¥60,113 million for FY3/2025, with operating profit down 20.2% to ¥5,669 million and profit attributable to owners down 4.7% to ¥4,676 million.

• Gross profit margin decreased to 39.7% from 41.0% year-over-year, and operating profit margin fell to 9.4% from 11.5%.

• Orders received in Q4 rose, especially from the Tech Market, with order backlog at ¥11,031 million.

• Measures to prevent recurrence of misconduct by former executives were implemented.

• ROE dropped to 9.5% from 10.5% year-over-year, and EPS declined to ¥265.80 from ¥279.45.

Financial highlights

• Cash and deposits increased to ¥7,969 million at FY3/2025 year-end, up from ¥6,386 million the previous year.

• Total assets rose to ¥77,823 million, with total liabilities at ¥27,302 million and net assets at ¥50,521 million.

• Interest-bearing debt increased to ¥13,616 million, with DER rising to 0.27 times.

• Operating cash flow surged 177% year-over-year to ¥4,870 million.

• Dividend per share maintained at ¥150.00, with a payout ratio of 56.4%.

Outlook and guidance

• FY2026 forecast: net sales ¥62,000 million (+3.1% YoY), operating profit ¥7,000 million (+23.5%), ordinary profit ¥7,000 million (+16.7%), profit attributable to owners of parent ¥4,800 million (+2.6%).

• First half FY2026 guidance: net sales ¥29,000 million (−3.6% YoY), profit attributable to owners of parent ¥1,800 million (−9.9%).

• U.S. tariff policy impact not included in forecasts due to uncertainty.

• The company maintains a target consolidated stockholder return ratio of 50%.