Ryoyo Ryosan Holdings (167A): FY2025 Results Summary — Operating Profit Up 18.6% as Integration Reforms Take Hold

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Ryoyo Ryosan Holdings, Inc. (TSE Prime: 167A) released its Briefing Materials on the Financial Results for FY2025 on May 19, 2026. The company labels this period FY2025, the same label this site uses for the most recent completed fiscal year. Net sales edged up 0.0% year on year to ¥3,599 (100 million yen) while operating profit rose 18.6% to ¥101.3, which the company attributes to the effects of earlier reforms following its 2024 management integration. Profit attributable to owners of parent fell 20.7% to ¥74.4 as extraordinary income or loss dropped from ¥59.3 to ¥23.2. The materials also disclose that the Group received a request from Renesas Electronics Corporation, a major supplier, to terminate its distribution agreement, and that the FY2026 forecast is not yet finalized.

Consolidated Results (Full-Year Actual)

The presentation states that net sales rose slightly while operating profit grew significantly, testifying to the effects of earlier reforms. Two drivers are cited: changes in the sales mix of the device business, where the Group secured new projects and relatively high-margin products grew as a percentage of total; and improved profitability in the solution business, where expansion of high-value-added projects, paced by the AI field, drove improved profitability. Gross profit margin improved from 9.7% to 10.4%. Operating profit and ordinary profit both exceeded the originally announced figures, by 6.6% and 11.6% respectively, and profit attributable to owners of parent came in 24.0% above the original figure even though it declined year on year.

Item (100 million yen)	FY2024 Full year	FY2025 Full year	FY2025 Originally announced	YoY Increase/decrease	YoY % Increase/decrease
Net sales	3,598	3,599	3,700	+1	+0.0%
Gross profit	349.4	376.0		+26.6	+7.6%
Gross profit (%)	9.7%	10.4%
SG&A espenses	263.9	274.7		+10.8	+4.1%
Operating profit	85.4	101.3	95.0	+15.9	+18.6%
Operating profit (%)	2.4%	2.8%	2.6%
Non-operating income or expenses	-14.1	-12.0		+2.1	—
Ordinary profit	71.3	89.3	80.0	+18.0	+25.2%
Ordinary profit (%)	2.0%	2.5%	2.2%
Extraordinary income or loss	59.3	23.2		-36.0	-60.8%
Profit before income tax	130.6	112.5		-18.1	-13.8%
Income taxes	36.7	38.1		+1.4	+3.8%
Profit attributable to owners of parent	93.9	74.4	60.0	-19.5	-20.7%
Profit attributable to owners of parent (%)	2.6%	2.1%	1.6%

Against the originally announced figures, net sales came in ¥101 lower (-2.7%), operating profit ¥6.3 higher (+6.6%), ordinary profit ¥9.3 higher (+11.6%) and profit attributable to owners of parent ¥14.4 higher (+24.0%). Within the half-year split disclosed in the materials, net sales were ¥1,722 in H1 and ¥1,877 in H2, and operating profit was ¥38.7 in H1 and ¥62.5 in H2.

Segment Results

In the Device Business, operating profit increased even though net sales declined: the materials note that although sales of devices for TVs, office automation equipment and industrial equipment declined, changes in the sales mix and acquisition of new, high-margin projects contributed. In the Solution Business, net sales and operating profit both increased year on year, as IT-related corporate investment continued to flourish against a background of introduction of DX and AI technology. In the operating profit bridge from FY2024 to FY2025, devices contributed +12.5, solutions +7.3 and adjustment -3.9.

Segment	Metric (100 million yen)	FY2024 Full year	FY2025 Full year	Increase/decrease	% Increase/decrease
Device Business	Net sales	2,596	2,547	-49	-1.9%
Device Business	Operating profit	44.8	57.3	+12.5	+27.9%
Device Business	Operating profit (%)	1.7%	2.3%
Solution Business	Net sales	1,002	1,053	+50	+5.0%
Solution Business	Operating profit	36.4	43.7	+7.3	+19.9%
Solution Business	Operating profit (%)	3.6%	4.2%
Adjustment	Operating profit adjustment	4.2	0.3	-3.9	-93.5%

Business / Breakdown	Category	FY2024 Full year (100 million yen)	FY2025 Full year (100 million yen)
Device Business — by product	Logic	1,027	831
Device Business — by product	Memory	199	203
Device Business — by product	Analog and power devices	496	581
Device Business — by product	Display devices	131	106
Device Business — by product	Electromechanical components, other	728	779
Device Business — by application	Automotive	1,045	1,035
Device Business — by application	Consumer	797	841
Device Business — by application	ICT	273	234
Device Business — by application	Industrial/infrastructure	351	330
Device Business — by application	Other	130	107
Solution Business — by product	Systems equipment	370	395
Solution Business — by product	Facility equipment	284	245
Solution Business — by product	Embedded devices	236	297
Solution Business — by product	Software, services, other	112	115

FY2026 Forecast and FY2028 Target

The materials state that the forecast of business results for FY2026 is not yet finalized. The company explains that although overall operations are expected to proceed on a firm trend, trends in business results are difficult to forecast while discussions with Renesas are still ongoing. For the device business, demand is expected to recover gradually after inventory adjustment conditions ease, while impact from some semiconductor shortages and geopolitical risk are causes for concern. For the solution business, continuing growth is expected with focus on the AI field, and advancement of integration synergies is expected to drive further expansion in adjacent fields.

On the medium-term target, the materials state that the target for business results published in FY2024 (net sales: ¥500 billion, operating profit: ¥30 billion) will be updated and published as a new policy following review events after the management integration and reexamination of future trends, and that the target for business results in FY2028 will be adjusted as appropriate.

Shareholder Returns

The materials state that, while taking stock of the operating environment and expected changes in the revenue mix, the Group is returning value with focus on medium-to-long term relations with shareholders. FY2025 dividends are to be as originally planned and FY2026 dividends are to be unchanged from FY2025. The company notes that the body that decides the FY2025 year-end dividend is the Ordinary General Shareholders’ Meeting, and that the dividend yield is calculated as of the closing share price on May 13, 2026.

	Interim	Year-end	Total	Dividend payout ratio	Dividend yield
FY2026 (Forecast)	¥70	¥70	¥140	—	5.0%
FY2025	¥70	¥70	¥140	75.4%	5.0%

On the retirement of treasury shares, the number of shares to be retired is 4,000,000 shares (7.41% of total issued shares before retirement), and the number of treasury shares held after retirement is 9,899,056 shares (19.80% of total issued shares after retirement). Shareholder benefits will be continued, with March 31, 2026 as the record date; gifts will be available from a catalogue in accordance with the number of shares held.

Topics: Renesas Request and Merger of Operating Subsidiaries

The presentation discloses that the Group received a request from Renesas Electronics Corporation, a major supplier, to terminate the distribution agreement with the Group. Net sales of Renesas products were ¥841 (100 million yen) in FY2024 and ¥781 in FY2025, equivalent to 23.4% and 21.7% of total sales respectively. The materials state that these results have no impact on the FY2025 financial results, that discussions are ongoing between the two companies, and that no agreement has been reached regarding future directions as of this writing. The Group says it will continue to seek resolution of this issue, placing top priority on avoiding inconvenience to customers.

Item	FY2024 (results)	FY2025 (results)
Net sales of Renesas products (100 million yen)	841	781
As share of total sales	23.4%	21.7%

Separately, after two years of testing the “synergy hypothesis” of the management integration, the Group completed the merger of its two operating subsidiaries, Ryosan and Ryoyo Electro, on April 1, 2026. The materials describe consistent sales styles and training plans across the Group, common systems and methods with a few exceptions, sequential integration of offices in Japan and overseas, and the elimination of barriers to information sharing. The company states that in the two years from management integration in 2024, preparations to welcome a new organization were completed smoothly, with no major obstacles or confusion.

Financial Position

The materials report that goodwill in non-current assets was ¥2.87 billion and customer-related assets were ¥8.64 billion, with an amortization period of 10 years for goodwill and 15 years for customer-related assets (both standards apply from 2024), giving approximate annual amortization of ¥1.0 billion. The equity ratio was 54.6% and net assets per share amounted to ¥3,413.06. Total assets at the FY2025 year-end stood at ¥2,508 (100 million yen) against ¥2,305 a year earlier, with trade receivables of ¥1,104, inventories of ¥561, cash and deposits of ¥360, interest-bearing liabilities of ¥463 and net assets of ¥1,369.

Measures in and after FY2026

The company states that the orientation of the Group is unchanged and that it is advancing measures to expand customer contact points across three axes. Under integration synergy, it will use success stories from FY2025 to harvest results and realize integration synergies in India and China, including reorganization of overseas subsidiaries. Under creating originality, it will continue investment in growth fields such as AI and robotics and strengthen expansion and training of specialized workforces for growth areas. Under improving productivity, it will expand customer contact points through the merger of operating subsidiaries and construct an IT foundation that will lead to radical improvement in operating efficiency. The materials also cite formation of new alliances, including new management integrations, business partnerships and collaboration with external partners.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.