Kanadevia (7004) Q4 2025 earnings summary

Executive summary

• Achieved record high order intake and net income in FY2024, with revenue and operating income rising for the seventh consecutive year, driven by overseas business expansion.

• FY2024 order intake reached JPY 765.9B (+7.1% YoY), net sales JPY 610.5B (+9.8% YoY), and operating income JPY 26.9B (+10.7% YoY).

• Profit attributable to shareholders rose 16.9% YoY to JPY 22.1B; ROE held at 12.6%.

• Comprehensive income increased to JPY 31.1B from JPY 26.5B YoY.

• Major global and domestic orders secured in waste-to-energy, water treatment, and infrastructure.

Financial highlights

• FY2024 net sales: JPY 610.5B (+9.8% YoY); operating income: JPY 26.9B (+10.7% YoY); net income: JPY 22.1B (+16.9% YoY).

• Gross profit increased from JPY 95.3B to JPY 114.2B YoY.

• Ordinary income declined 5.1% to JPY 24.3B, impacted by higher non-operating expenses and lower equity method income.

• Cash flows from operating activities surged to JPY 24.8B; investing outflows rose to JPY -56.6B, mainly for capital investment.

• Total assets increased to JPY 609.6B; shareholders' equity ratio improved to 31.1%.

Outlook and guidance

• FY2025 order intake forecast at JPY 700.0B (-8.6% YoY); net sales projected at JPY 620.0B (+1.6% YoY).

• Operating income expected at JPY 27.0B (+0.4% YoY); net income forecast to decline to JPY 16.0B (-27.6% YoY).

• ROE projected to decrease to 8.2%; dividend per share maintained at JPY 25.

• Segment order intake forecast for FY2026: Environment and Machinery & Infrastructure expected to decline, Carbon Neutral Solution to rise.

• Carbon Neutral Solution business targets order recovery and continued investment in hydrogen-related growth.