Dai-Ichi Cutter Kogyo (1716) Q4 2025 earnings summary

Executive summary

• Revenue for the year ended June 2025 was ¥20,228 million, down 3.3% year-over-year due to a decrease in highway projects, completed construction work, and the exclusion of a subsidiary from consolidation.

• Operating profit fell 32.9% to ¥1,647 million, and net profit attributable to shareholders dropped 32.7% to ¥1,327 million year-over-year.

• Full-year guidance was revised downward in June based on business progress.

• Public sector (especially roads and bridges) expected to remain robust, with revenue and profit growth forecast for the next fiscal year.

• The company maintained a high equity ratio of 86.4% and increased net assets by ¥1,072 million to ¥19,358 million.

Financial highlights

• FY2025/6 revenue: ¥20,228 million, down 3.3% year-over-year.

• Operating income: ¥1,647 million, down 32.9% year-over-year.

• Net income attributable to shareholders: ¥1,327 million, down 32.7% year-over-year.

• Ordinary profit: ¥1,791 million, down 36.7% year-over-year.

• EPS: ¥117.71 (down from ¥174.38 year-over-year).

Outlook and guidance

• FY2026/6 revenue forecast: ¥20,500 million (+1.3% year-over-year).

• Operating income forecast: ¥1,800 million (+9.3% year-over-year).

• Net income forecast: ¥1,290 million (-2.8% year-over-year).

• Dividend forecast maintained at ¥40 per share; payout ratio expected at 34.9%.

• The company expects a challenging environment due to rising material and energy costs but plans to expand in western Japan and invest in R&D and productivity improvements.