Miyaji Engineering Group (3431) Q4 2026 earnings summary

Executive summary

• FY2025 saw significant declines in net sales and profits due to the absence of large-scale renovation projects and a harsh business environment, with orders received dropping 29.2% year-on-year.

• Both main subsidiaries, MIYAJI ENGINEERING and MM BRIDGE, experienced decreases in revenue and profit, with MM BRIDGE particularly impacted by reduced project scope and rising costs.

• The company implemented work style reforms and production efficiency initiatives but could not offset the impact of lower sales.

Financial highlights

• Net sales for FY2025 were ¥56,659 million, down 24.2% year-on-year.

• Operating profit fell 50.6% to ¥4,525 million; ordinary profit dropped 49.1% to ¥4,830 million.

• Profit attributable to owners of parent was ¥3,264 million, down 32.7% year-on-year.

• Orders received totaled ¥50,577 million, a 29.2% decrease; order backlog at year-end was ¥106,413 million, down 5.4%.

• Comprehensive income was ¥4,866 million, down 26.1% from the prior year.

Outlook and guidance

• FY2026 results are expected to fall below FY2025 but exceed the November 2025 forecast, with net sales forecast at ¥55,000 million and operating profit at ¥2,300 million.

• Dividend forecast for FY2026 is ¥75 per share, reflecting a 100% payout ratio policy.

• Management expects a challenging environment to persist through the first half of the next Medium-Term Business Plan, with gradual recovery anticipated in large-scale renovation projects.

• FY2027 forecast: net sales ¥55.0 billion (down 2.9%), operating profit ¥2.3 billion (down 49.2%), profit attributable to owners of parent ¥2.0 billion (down 38.7%).