Hochiki (6745) Q4 2026 earnings summary

Executive summary

• Consolidated net sales and operating profit reached record highs for the fifth consecutive year, with operating margin exceeding 11% due to strong domestic construction demand and improved profitability.

• Orders received and order backlog also hit record highs, supporting future sales growth.

• Growth was driven by robust domestic refurbishment/maintenance and strong Asia Pacific and European overseas sales, with profitability improved through a focus on high-margin services.

Financial highlights

• FY3/2026 net sales: ¥105,855 million, up 4.9% year-over-year; operating profit: ¥12,066 million, up 26.3%; profit attributable to owners: ¥9,377 million, up 22.6%.

• Gross profit increased from ¥37,153 million to ¥41,669 million year-over-year.

• Comprehensive income surged 47.9% year-over-year to ¥11,598 million.

• ROE improved to 14.7%; ROIC to 13.4%; equity ratio rose to 69.8%.

• Stock-model business (maintenance and refurbishment) made up 59.4% of domestic sales.

Outlook and guidance

• FY3/2027 forecast: net sales ¥110,000 million (+3.9%), operating profit ¥12,300 million (+1.9%), profit attributable to owners ¥9,000 million (–4.0%).

• Overseas sales expected to expand, especially in North America and Asia Pacific.

• Record highs anticipated for sixth consecutive year, with stable exchange rate assumptions.

• Interim and year-end dividends forecast at ¥20.00 per share each (annual ¥40.00 post-split), payout ratio 33.2%.

• Demand in fire prevention and security expected to remain firm despite external uncertainties.