Rinnai (5947) Q4 2025 earnings summary

Executive summary

• Achieved record-high net sales of ¥460.3 billion in fiscal 2025, up 7.0% year-over-year, driven by high-value-added and eco-friendly products, and normalization of supply chains.

• Operating income reached ¥46.0 billion, up 16.9% year-over-year, with cost reduction efforts offsetting rising costs.

• Net income attributable to owners was ¥29.6 billion, up 11.3% year-over-year, with strong performance in Japan, the US, and Indonesia offsetting declines in China.

• Recall of bathroom heater/dryers led to a ¥2,540 million expense booked as operating expenses.

• Focused on expanding eco-friendly product lines and advancing carbon neutrality initiatives under the RIM2050 commitment.

Financial highlights

• Net sales: ¥460.3 billion (+7.0% year-over-year); operating income: ¥46.0 billion (+16.9%); ordinary income: ¥50.3 billion (+9.2%).

• Net income: ¥29.6 billion (+11.3%); operating margin: 10.0% (+0.8pt year-over-year); net income to net sales ratio: 6.5%.

• Cash and cash equivalents at year-end rose 10.1% to ¥136.3 billion.

• Net assets increased to ¥461.7 billion, with an equity ratio of 66.9%.

• Record-high sales and profits since fiscal 2022, despite volatility from rising manufacturing costs.

Outlook and guidance

• Fiscal 2026 plan: net sales ¥470.0 billion (+2.1%), operating income ¥50.0 billion (+8.7%), net income attributable to owners ¥33.0 billion (+11.1%), operating margin 10.6%.

• ROE expected to rise to 8.0%, ROIC to 12.0% in fiscal 2026.

• Continued focus on high-value-added and energy-efficient products, with cost reduction to offset higher logistics and raw material costs.

• Plans to expand in emerging markets and introduce electric products in regions shifting to renewables.

• Anticipates continued high procurement costs and global economic uncertainty.