MEISEI INDUSTRIAL (1976) Q4 2026 earnings summary

Executive summary

• Revenue and profit declined year-over-year due to fewer large projects and increased costs, despite steady domestic orders and high order backlog.

• Orders received rose 2.0% year-over-year to ¥63,536 million, driven by strong domestic demand in both construction and boiler businesses.

• Both main business segments—construction and boiler—experienced lower sales and profits, mainly from cost pressures and project timing.

• Operating profit fell 27.7% to ¥7,675 million, ordinary profit dropped 26.1% to ¥8,306 million, and profit attributable to owners of parent decreased 35.0% to ¥5,494 million.

Financial highlights

• FY2025 revenue was ¥60,299 million, down 9.0% year-over-year but 0.5% above initial forecast.

• Operating profit: ¥7,675 million (down 27.7% year-over-year).

• Ordinary profit: ¥8,306 million (down 26.1% year-over-year).

• Net income attributable to shareholders was ¥5,494 million, down 35.0% year-over-year; EPS ¥116.92.

• Free cash flow increased to ¥8,782 million, up ¥2,345 million from the previous year; cash and cash equivalents at year-end: ¥36,696 million (up ¥3,247 million year-over-year).

Outlook and guidance

• FY2026/2027 revenue forecast is ¥61,000 million (+1.2%), with operating profit expected to decline 8.8% to ¥7,000 million.

• Net income is projected at ¥5,600 million (+1.9% year-over-year).

• Dividend per share forecast is ¥65; dividend payout ratio forecast 53.3% for FY2027.

• Economic outlook remains uncertain due to geopolitical risks and market volatility.

• Construction segment expects lower sales and profit due to cost increases and fewer large overseas projects; boiler segment anticipates higher sales and profit from large projects.