Kanadevia (7004) Q4 2026 earnings summary

Executive summary

• FY2025 saw record-high order intake (JPY 897.7B, +17.2% YoY) and net sales (JPY 645.2B, +5.7% YoY), but operating income dropped 54.8% YoY to JPY 12.1B and profit attributable to shareholders fell 49.6% YoY to JPY 11.1B due to one-off costs and extraordinary losses.

• Significant declines in profitability were driven by higher costs, technical trouble-related expenses, and impairment from quality-related issues.

• Comprehensive income decreased sharply to JPY 12.2B from JPY 31.1B the previous year.

• FY2026 forecasts a significant recovery in operating income (JPY 25.5B, +13.4B YoY) as one-off costs are not expected to recur, with profit attributable to shareholders rising to JPY 21.0B.

Financial highlights

• Gross profit decreased by JPY 5.0B YoY to JPY 109.1B, while SG&A expenses rose by JPY 9.7B to JPY 96.9B.

• Operating margin fell to 1.9% from 4.4% YoY.

• Cash and deposits rose to JPY 78.0B, and total assets increased to JPY 718.6B, with interest-bearing debt up to JPY 184.1B.

• Shareholders’ equity ratio decreased to 27.4%.

• Dividend per share remained at 25 yen, with a payout ratio of 37.8%.

Outlook and guidance

• FY2026 order intake forecast at JPY 810.0B and net sales at JPY 640.0B, both slightly down due to portfolio transformation.

• Operating income expected to more than double to JPY 25.5B, with profit attributable to shareholders rising to JPY 21.0B.

• Dividend to increase from 25 to 38 yen per share in FY2026, targeting a payout ratio of 30%.