TOKAI (9729) Q4 2025 earnings summary

Executive summary

• Achieved record-high consolidated net sales of ¥149,542mn, driven by strong core rental business, hotel linen, cleaning equipment manufacturing, and two new subsidiaries.

• Operating profit increased for the second consecutive year to ¥8,205mn, despite higher depreciation and acquisition-related expenses.

• Ordinary profit grew 3.9% to ¥8,838mn; profit attributable to owners of parent declined 18.5% to ¥4,733mn due to impairment losses.

• Comprehensive income dropped 40.6% year-over-year to ¥4,076mn.

Financial highlights

• Gross profit increased to ¥35,439mn from ¥33,637mn year-over-year.

• Basic earnings per share fell to ¥139.09 from ¥165.05 year-over-year.

• Cash and cash equivalents at period end decreased to ¥23,885mn from ¥30,407mn.

• Net assets per share rose to ¥2,518.89 from ¥2,447.91 year-over-year.

• Healthcare and pharmacy services segments led sales growth; environmental services remained flat.

Outlook and guidance

• FY3/26 forecast: net sales to rise 5.6% to ¥157,976mn; operating profit to edge up 0.1% to ¥8,216mn; profit attributable to owners of parent projected to increase 16.2% to ¥5,499mn.

• Ordinary profit forecasted at ¥8,590mn (−2.8% YoY); basic EPS ¥162.69.

• Annual dividend forecast for FY2026 is ¥68.00 per share, including a ¥10 commemorative dividend for the 70th anniversary.