Kurabo Industries (3106): FY2025 Results Summary — Record Net Profit on Cross-Shareholding Gains Despite Lower Sales

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

Note: Kurabo Industries labels its most recent completed fiscal year as “FY3/26” (the fiscal year ended March 31, 2026); on this site it is classified as FY2025. The figures, tables and segment labels below follow the company’s presentation — FY3/26 for the year just ended, FY3/25 for the prior year, and FY3/27 for the current-year forecast.

For FY3/26 (ended March 31, 2026), net sales fell 4.6% year on year to ¥143,758 million and operating profit declined 11.0% to ¥9,182 million, as the mainstay High-performance plastic products business slowed amid an adjustment phase in semiconductor manufacturing-related markets. However, profit attributable to owners of parent rose 42.8% to a record ¥12,876 million, lifted by extraordinary income including gains on the sale of cross-shareholdings. Profit at every level exceeded both the first-year targets of the medium-term plan “Accelerate ’27” and the latest forecast announced on February 9. The annual dividend was raised to ¥307 per share, up ¥127 year on year.

Consolidated Results (Full-Year Actual)

Net sales declined due to lower sales in the Chemical Products Business and Textile Business, though sales were roughly in line with the medium-term plan’s first-year target and the latest forecast. Profits also decreased on lower sales but exceeded plan and the latest increased forecast, and net profit reached a record high, partly due to gains on the sale of cross-shareholdings.

Item (¥mn)	FY3/26	FY3/25	YoY change	YoY %
Net sales	143,758	150,660	-6,901	-4.6%
Gross profit	30,876	31,658	-782	-2.5%
SG&A expenses	21,694	21,346	+347	+1.6%
Operating profit	9,182	10,311	-1,129	-11.0%
Ordinary profit	11,071	11,784	-712	-6.1%
Profit attributable to owners of parent	12,876	9,014	+3,861	+42.8%
Capital expenditure	5,075	7,156	-2,080	—
Depreciation	5,017	5,157	-139	—

On the balance sheet, the equity ratio rose 2.6pt to 65.5% and ROE improved 2.6pt to 10.2%, while ROA was 4.7% and ROIC 4.6%. Operating cash flow was ¥14,586 million, up from ¥11,048 million in FY3/25.

Segment Results

By segment, the Chemical Products Business and Textile Business saw lower sales and profit, while the Advanced Technology Business posted a record-high operating profit and the Food and Services and Real Estate businesses grew. The Textile Business recorded an operating loss, partly due to non-recurring costs related to the closure of the Anjo Mill.

Segment	Net sales FY3/26	Net sales FY3/25	Operating profit FY3/26	Operating profit FY3/25
Chemical Products Business	62,654	66,002	4,154	5,030
Textile Business	43,276	48,532	-897	75
Advanced Technology Business	22,716	21,943	3,867	3,341
Food and Services Business	11,145	10,458	885	724
Real Estate Business	3,965	3,723	2,299	2,243

FY3/27 Forecast

For FY3/27, the company forecasts substantial gains in both sales and profit, driven by the mainstay High-performance plastic products business amid a semiconductor market recovery. Profit at each stage is expected to reach record highs for the first time in two fiscal years.

Item (¥mn)	FY3/27 Forecast	FY3/26 Actual	YoY %
Net sales	154,000	143,758	+7.1%
Operating profit	11,200	9,182	+22.0%
Ordinary profit	12,500	11,071	+12.9%
Profit attributable to owners of parent	13,000	12,876	+1.0%

Segment	Net sales (Forecast)	Operating profit (Forecast)
Chemical Products Business	68,000	5,500
Textile Business	45,600	400
Advanced Technology Business	25,000	3,400
Food and Services Business	11,500	900
Real Estate Business	3,900	2,200

Shareholder Returns

The dividend policy targets a 4% dividend on equity (DOE), with treasury share purchases of ¥20 billion planned over the Accelerate ’27 period. For FY3/26, the annual dividend was raised to ¥307 per share (interim ¥141, year-end ¥166), an increase of ¥127 year on year and ¥25 above the forecast; the total return ratio was 91.8%. For FY3/27, the company forecasts an annual dividend of ¥331 per share on a pre-split basis (interim ¥166 pre-split, year-end ¥33 post-split), which would mark a fourth consecutive year of dividend increases. A 5-for-1 stock split of common shares is scheduled for October 1, 2026. As resolved on November 11, 2025, the company may repurchase up to 1,000,000 shares for up to ¥7 billion through September 30, 2026; through March 31, 2026 it had purchased 535,000 shares for ¥4.2 billion.

Medium-Term Plan “Accelerate ’27”

Under the three-year medium-term plan “Accelerate ’27,” the company targets final-year (FY3/28) net sales of ¥165 billion and operating profit of ¥13 billion, along with ROE of 10.0% and ROIC of 7.9%. In the plan’s first year, profit at every level exceeded the initial plan, and ROE of 10.2% already surpassed the 10% target, while ROIC of 4.6% remains below the 8%-or-more goal. Cumulative first-year cash allocation included growth investment and shareholder returns funded by operating cash flow and sales of non-operating assets. The company aims to sustain a P/B ratio of 1x or more by advancing business portfolio reform, reducing cross-shareholdings (¥7.3 billion sold in FY3/26), and enhancing shareholder returns.

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.