ARE Holdings (5857) Q4 2025 earnings summary

Executive summary

• Revenue surged to ¥506.2 billion for FY2025.3, up 57.1% year-over-year, driven by higher gold prices, increased collection volumes in jewelry and electronics, and strong North American refining performance, despite a ¥2.0 billion impairment loss from exiting the minted product processing business.

• Operating profit rose to ¥20.0 billion, a 61.6% increase year-over-year, while profit attributable to owners of parent was ¥14.3 billion, down year-over-year due to the absence of prior year’s one-time gain from discontinued operations.

• The Environmental Preservation business included equity-method profit from Renatus Co., Ltd., following the reclassification of Japan Waste Corporation as discontinued operations.

Financial highlights

• Precious Metals Business revenue reached ¥506.1 billion (+¥183.9 billion YoY), with operating profit at ¥18.3 billion (+¥5.6 billion YoY).

• Environmental Preservation Business posted ¥1.9 billion in both revenue and operating profit, each up ¥1.9 billion YoY.

• Total assets increased to ¥490,037 million from ¥317,998 million, mainly due to higher cash, receivables, and inventories.

• Cash and cash equivalents at year-end rose to ¥17,555 million, up ¥10,674 million year-over-year.

• Annual dividend set at ¥80 per share, with a payout ratio of 42.8%.

Outlook and guidance

• FY2026.3 revenue is forecast at ¥448.2 billion, with operating profit targeted at ¥22.0 billion and profit attributable to owners of parent at ¥16,179 million.

• Interim and year-end dividends for FY2026 are each planned at ¥40 per share.

• Growth strategies include expanding overseas (India, Thailand), enhancing production at Bando Plant (2nd), and pursuing M&A.