Okumura (1833) Q4 2025 earnings summary

Executive summary

• Net sales rose 3.5% year-over-year to ¥298,222 million, driven by steady progress in the Building segment.

• Operating profit declined 29.0% to ¥9,731 million, and ordinary profit fell 40.0% to ¥8,926 million, mainly due to losses in Civil Engineering and extraordinary losses in Investment Development.

• Profit attributable to owners of parent dropped 78.2% to ¥2,722 million, impacted by impairment losses following an explosion at a subsidiary's power plant.

• An internal investigation into improper cost management found no material impact on financial statements, but measures to prevent recurrence were implemented.

Financial highlights

• Gross profit increased in Building but decreased in Civil Engineering and Investment Development.

• Extraordinary losses included ¥12,915 million in impairment losses on biomass power generation equipment.

• Comprehensive income turned negative at ¥(6,374) million, compared to ¥26,897 million last year.

• Net assets decreased to ¥172,455 million, and the capital adequacy ratio fell to 45.1%.

• Cash and cash equivalents at year-end were ¥27,440 million, down ¥1,477 million year-over-year.

Outlook and guidance

• For FY2026, net sales are forecast at ¥298,500 million (+0.1%), operating profit at ¥10,800 million (+11.0%), ordinary profit at ¥12,700 million (+42.3%), and profit attributable to owners of parent at ¥11,300 million (+315.0%).

• Annual dividend for FY2026 is planned at ¥220 per share, with a consolidated payout ratio of 70.4%.