Daiei Kankyo (9336) Q4 2025 earnings summary

Executive summary

• Net sales for FY2025/3 rose 9.8% year-on-year to 80,178 million yen, with operating profit up 9.3% to 21,548 million yen and profit attributable to owners of parent up 5.7% to 14,364 million yen, marking record performance.

• Growth was driven by robust demand in infrastructure projects, expansion in waste recycling, and consolidation of new subsidiaries in the Kanto area.

• FY2026/3 forecasts project net sales of 83,900 million yen (+4.6% YoY), operating profit of 21,800 million yen (+1.2% YoY), and profit attributable to owners of parent of 14,400 million yen (+0.2% YoY).

• Governance enhancements included transition to a Company with an Audit and Supervisory Committee and appointment of new executive officers.

• Shareholder returns included interim dividends, a higher annual dividend per share of 48.00 yen, and the introduction of a shareholder incentive program.

Financial highlights

• FY2025/3 EBITDA increased 5.9% year-on-year to 27,824 million yen, with EBITDA margin at 34.7%.

• Gross profit increased to 34,929 million yen from 31,775 million yen year-over-year.

• Cash and cash equivalents at year-end were 52,647 million yen, up 1.0% year-over-year.

• Basic earnings per share rose to 145.54 yen from 136.44 yen year-over-year.

• Annual dividend payout ratio for FY2025/3 was 33.5%.

Outlook and guidance

• FY2026/3 expects continued sales and profit growth despite rising costs, with EBITDA forecast to rise 12.1% to 31,200 million yen.

• Waste volume received is expected to remain steady (+0.9%), while contaminated soil volume is forecast to surge 77.4% due to expanded treatment facilities.

• Capital expenditures planned at 15,100 million yen, with depreciation and amortization of goodwill rising sharply.

• Dividend payout ratio target maintained at 33% or higher, with progressive dividends planned.

• Business environment expected to remain firm despite global uncertainties, with continued demand for development and capital investment.