Hulic (3003): FY2025 Results Summary — 17th Consecutive Year of Record Profit and Dividend

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Hulic Co., Ltd. (3003) reported FY2025 consolidated results that exceeded its revised forecast, with all profit items increasing by more than 10% year on year: operating profit of JPY186.8 bn (+14.3% YoY), ordinary profit of JPY172.9 bn (+12.0% YoY), and profit attributable to owners of parent of JPY114.3 bn (+11.7% YoY). The annual dividend was set at 62.0 yen, up 2.0 yen from the revised forecast announced on Oct. 28 and up 8.0 yen year on year, with a payout ratio of 41.1% — marking the 17th consecutive year of record-high profit and dividend per share since listing. Growth was led by the Real Estate business, where operating profit rose JPY27.6 bn YoY to JPY198.1 bn, while Hotels/Ryokans results were roughly flat (JPY1.6 bn, -JPY0.0 bn YoY) as higher opening costs offset gains.

Consolidated Results (Full-Year Actual)

Operating revenue increased to JPY727,447 million, up JPY135,831 million (+22.9%) YoY. Operating profit reached JPY186,826 million (+14.3%) and ordinary profit was JPY172,927 million (+12.0%), as the increase in interest expenses from rising rates was offset by growth in operating profit. Profit attributable to owners of parent was JPY114,334 million (+11.7%). Financial discipline metrics remained within target ranges: ROE was 13.0% (aiming at around 12% or higher), Net D/E ratio was 1.8 times (aiming at high-1x range), D/EBITDA ratio was 9.2 times (aiming at around 10 times), and dividend payout ratio was 41.1% (aiming at 40% or higher).

Item (Million yen)	FY2025	FY2024	Change
Operating Revenue	727,447	591,615	135,831 (+22.9%)
Operating Gross Profit	276,802	230,934	45,868
SGA Expenses	89,976	67,573	22,403
Operating Profit	186,826	163,360	23,465 (+14.3%)
Non-operating Income	13,639	6,791	6,847
Non-operating Expenses	27,538	15,822	11,715
Ordinary Profit (Recurring Profit)	172,927	154,329	18,597 (+12.0%)
Extraordinary Income	4,467	6,333	-1,866
Extraordinary Losses	6,052	9,527	-3,474
Total Income Taxes	56,081	47,845	8,236
Profit attributable to Owners of Parent	114,334	102,341	11,993 (+11.7%)

Segment Results

Real Estate operating profit rose JPY27.6 bn (16%) YoY to JPY198.1 bn, with Raysum — consolidated since March 2025 — outperforming its internal plan by JPY2.0 bn. Hotels/Ryokans results were roughly flat due to higher opening costs but came in well above plan. Stable core profits (operating profit excluding real estate sales profit, with elimination and corporate items allocated to reportable segments and Others) accounted for 36.5% of the total, versus 36.6% in FY2024.

Segment	Metric (Million yen)	FY2025	FY2024
Real Estate	Operating Revenue	637,458	527,204
Raysum	Operating Revenue	136,838	–
Insurance Agency (subsidiary)	Operating Revenue	3,929	3,699
Hotels/Ryokans (subsidiaries)	Operating Revenue	54,256	49,092
Riso Kyoiku	Operating Revenue	33,931	17,828
Others	Operating Revenue	45,643	25,814
Elimination/Corporate	Operating Revenue	-13,840	-14,195
Real Estate	Operating Profit	198,111	170,428
Raysum (pre-goodwill amortization)	Operating Profit	25,549	–
Insurance Agency (subsidiary)	Operating Profit	1,090	997
Hotels/Ryokans (subsidiaries)	Operating Profit	1,670	1,675
Riso Kyoiku (pre-goodwill amortization)	Operating Profit	2,459	2,147
Others	Operating Profit	2,137	2,233
Elimination/Corporate	Operating Profit	-16,184	-11,974

FY2026 Forecast

Hulic plans to announce a new Medium-and Long-term Management Plan (2026-2036) on February 3, 2026, building on progress toward the previous plan’s target of over JPY180.0 bn in consolidated ordinary profit. For FY2026, the company forecasts operating profit of JPY210.0 bn (+23.1 bn), ordinary profit of JPY185.0 bn (+12.0 bn), and profit attributable to owners of parent of JPY121.0 bn (+6.6 bn), together with an annual dividend increase to 67.0 yen (+5.0 yen) and a payout ratio of 42.0%. The company expects to achieve its 18th consecutive year of record-high profit and dividend per share since listing.

Item	FY2025 (Actual)	FY2026 (Forecast)	Change
Operating Revenue (bn yen)	727.4	－	－
Operating Profit (bn yen)	186.8	210.0	+23.1
Ordinary Profit (bn yen)	172.9	185.0	+12.0
Profit attributable to Owners of Parent (bn yen)	114.3	121.0	+6.6
Annual Dividend (yen)	62.0	67.0	+5.0

Shareholder Returns

The FY2025 annual dividend was 62.0 yen (payout ratio 41.1%), and the FY2026 forecast dividend is 67.0 yen (payout ratio 42.0%), continuing an uninterrupted streak of dividend increases since listing. EPS for FY2025 was 150.50 yen (FY2026 forecast: 159.35 yen), and BPS at the end of FY2025 was 1,202.76 yen. During FY2025, the company also purchased treasury shares (BBT) for approximately JPY3.1 bn, which was reflected as a decrease in net assets.

Metric	FY2025	FY2026 (Forecast)
EPS (yen per share)	150.50	159.35
BPS (yen per share)	1,202.76	N/A
Annual Dividend (yen)	62.00	67.00
Payout ratio	41.1%	42.0%

Medium-Term Plan / Topics

Under its ‘Achieving profit growth on a consolidated basis’ growth strategy, Hulic advanced several M&A transactions in FY2025. Raysum was made a wholly-owned subsidiary on March 6, 2025; its FY2025 operating profit (pre-goodwill amortization) was JPY25.5 bn, exceeding the initial plan, and approximately 60% of its funding had been shifted to parent-subsidiary loans from Hulic as of the end of 2025. Cook Deli, Inc., a ready-to-eat meal provider for the senior living industry, became a 51%-owned consolidated subsidiary (announced October 2025). Koken Boring Machine Co., Ltd. was consolidated (announced June 2025, acquisition size approx. JPY5.5 bn). Hulic also acquired 84.69% of Canadian Solar Infrastructure Fund, Inc. [TSE9284] through a tender offer, making it a consolidated subsidiary on August 5, 2025 and a wholly-owned subsidiary on November 19, 2025 (acquisition size approx. JPY5.4 bn), with a plan to acquire an additional 6.01% to bring total holdings to 20.0% as an equity-method affiliate. Riso Kyoiku (child education business, ‘Kodomo Depart’) recorded FY2025 operating profit (pre-goodwill amortization) of JPY2,459 million, up from JPY2,147 million in FY2024. Looking ahead, Hulic is also progressing new business domains under its ‘Hulic in the next 10 years’ initiatives, including the Narita Logistics Development Project (‘WING NRT’) jointly developed with Japan Airlines (completion 2029) and a tentatively named Makuhari Arena Development Project targeting a 2030 opening.

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.