Katakura Industries (3001): FY2025 Results Summary — Higher Sales and Profit; FY2026 Earnings Seen Easing

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For the fiscal year ended December 31, 2025 (referred to as FY2025 in the company’s materials), Katakura Industries reported net sales of 40,652 million yen (up 1,228 million yen year on year) and operating income of 5,855 million yen (up 1,731 million yen). Ordinary income was 7,217 million yen and profit attributable to owners of parent was 5,763 million yen (up 2,239 million yen). Both sales and earnings increased, driven mainly by higher rental income in Real Estate, a rebound in Machinery, and improved margins in Pharmaceuticals. For FY2026 the company forecasts higher sales but lower earnings.

Note: Katakura Industries has a December fiscal year-end, so its latest completed full year is the year ended December 31, 2025. Figures are transcribed as reported in the company’s English-language results presentation.

Consolidated Results (Full-Year Actual)

Net sales came to 40,652 million yen, slightly below the company’s forecast of 40,700 million yen, as Textiles and Others fell short. Operating income of 5,855 million yen exceeded the 5,000 million yen forecast, owing primarily to a decline in repair costs in Real Estate. The operating income ratio rose to 14.4% from 10.5% a year earlier. Extraordinary income was 1,390 million yen (including a gain on sales of non-current assets of 1,253 million yen), against 2,930 million yen in the prior year.

Item (Million yen)	2025 Actual	2024 Actual	YoY Change	2025 Forecast	Actual vs. Forecast
Net sales	40,652	39,424	1,228	40,700	(48)
Operating income	5,855	4,124	1,731	5,000	855
Operating income ratio	14.4%	10.5%	3.9pt	12.3%	2.1pt
Ordinary income	7,217	5,483	1,734	6,000	1,217
Extraordinary income	1,390	2,930	(1,540)	–	–
Extraordinary loss	–	1,016	(1,016)	–	–
Income taxes	2,793	3,653	(860)	–	–
Profit attributable to owners of parent	5,763	3,524	2,239	4,900	863

Segment Results

Real Estate saw sales and earnings increase, mainly on higher rental income from tenants at the COCOON CITY Shopping Center. Pharmaceuticals sales declined on the impact of NHI drug price revisions, but earnings rose on lower fixed costs following a voluntary early retirement program. Machinery sales and earnings increased as chassis deliveries recovered from earlier automotive semiconductor shortages. Textiles sales fell but earnings rose on lower fixed costs, while Others declined on lower sales of printed paper containers and pollinating insects.

Segment	Net sales 2025	Net sales 2024	Operating income 2025	Operating income 2024
Real Estate	11,699	11,139	4,395	4,269
Pharmaceuticals	11,681	12,403	957	208
Machinery	7,819	6,147	771	88
Textiles	6,818	6,981	731	652
Others	2,633	2,751	49	119
Adjustments	–	–	(1,051)	(1,214)
Total	40,652	39,424	5,855	4,124

FY2026 Forecast (Company Guidance)

For FY2026 (fiscal year ending December 31, 2026), the company forecasts net sales of 41,100 million yen (up 448 million yen) but operating income of 5,500 million yen (down 355 million yen), an operating income ratio of 13.4%. Ordinary income is forecast at 6,900 million yen and profit attributable to owners of parent at 5,200 million yen (down 563 million yen). By segment, sales and earnings are expected to rise in Real Estate, while Machinery is expected to decline on chassis model changes; Pharmaceuticals and Textiles are expected to see higher sales but lower earnings on cost increases and depreciation.

Item (Million yen)	2026 Forecast	2025 Actual	YoY Change
Net sales	41,100	40,652	448
Operating income	5,500	5,855	(355)
Operating income ratio	13.4%	14.4%	(1.0)pt
Ordinary income	6,900	7,217	(317)
Profit attributable to owners of parent	5,200	5,763	(563)

Segment	Net sales 2026 Forecast	Net sales 2025 Actual	Operating income 2026 Forecast	Operating income 2025 Actual
Real Estate	12,000	11,699	4,500	4,395
Pharmaceuticals	12,000	11,681	900	957
Machinery	7,100	7,819	500	771
Textiles	7,100	6,818	700	731
Others	2,900	2,633	100	49
Adjustments	–	–	(1,200)	(1,051)
Total	41,100	40,652	5,500	5,855

Shareholder Returns

The FY2025 dividend per share was 60 yen (FY2024: 50 yen), with the year-end dividend revised up by 10 yen from the initial forecast. Total dividend payments were 1,908 million yen. The company also conducted a share repurchase of 650,000 shares in May 2025, amounting to approximately 1,443 million yen (2.00% of issued shares excluding treasury stock). The FY2025 total payout ratio was 76.7% (FY2024: 83.0%). The FY2026 dividend per share is forecast at 60 yen. Under its shareholder return policy, the company targets a total payout ratio of approximately 60% of profit attributable to owners of parent, excluding special factors.

Item	FY2025	FY2026 (Forecast)	FY2024 (Reference)
Dividends per share (Yen)	60	60	50
Total dividend payment (Million yen)	1,908	–	1,623
Amount of share repurchase (Million yen)	1,443	(Note)	1,301
Total payout ratio	76.7%	–	83.0%

Priority Issues and Topics

In Real Estate, the company plans continued proactive renovation at COCOON CITY, a full-year contribution from leasing at the former Kazo Plant land (leasing started July 2025), and a new 111-unit rental apartment project in Omiya Ward, Saitama City (construction started January 2026; leasing to begin October 2027). In Pharmaceuticals, it will enhance sales of mainstay products including Tolvaptan 3.75 mg tablets (released December 2025) and pursue global expansion. In Textiles, Nitivy Co., Ltd. will release a new high-performance heat-resistant fiber, ALCELON, in March 2026. The company also continues to grow through M&A, citing Garden Express Co., Ltd. (planting business) and Katakura CrossTechnology Co., Ltd. (IT business).

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.