Shikibo Ltd. (3109): FY2025 Results Summary — Higher Sales, Lower Profit; Net Income Up 4.0%

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

Note: Shikibo does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. The company’s materials label this period the fiscal year ended March 2026; under this site’s convention it is classified as FY2025.

Shikibo announced its consolidated results for the fiscal year ended March 2026. Net sales rose 14.0% year on year to 44,554 million yen, aided by a contribution from the business acquired from the Unitika group. Operating profit, however, fell 27.6% year on year to 974 million yen, due to expenses associated with the business acquisition and higher depreciation following the start-up of a new plant in the Foods and Chemicals business. Reflecting extraordinary items as well, net income attributable to owners of the parent rose 4.0% year on year to 950 million yen.

Consolidated Results (Full Year)

Net sales increased from 39,087 million yen to 44,554 million yen. Operating profit declined from 1,346 million yen to 974 million yen, and the operating margin fell from 3.4% to 2.2%. Ordinary profit came to 658 million yen, down 37.1% year on year from 1,047 million yen, while net extraordinary income rose from 189 million yen to 455 million yen. Net income attributable to owners of the parent increased from 914 million yen to 950 million yen (up 4.0% year on year), and earnings per share rose from 72.75 yen to 74.93 yen.

Item	FY ended Mar 2025	FY ended Mar 2026	Change
Net sales	39,087 million yen	44,554 million yen	+5,467 million yen (+14.0%)
Operating profit	1,346 million yen	974 million yen	-371 million yen (-27.6%)
Ordinary profit	1,047 million yen	658 million yen	-389 million yen (-37.1%)
Net extraordinary income	189 million yen	455 million yen	+265 million yen
Net income attributable to owners of the parent	914 million yen	950 million yen	+36 million yen (+4.0%)
Earnings per share	72.75 yen	74.93 yen	+2.17 yen

Segment Results

In the Textiles segment, both net sales and operating profit rose sharply, driven by the business acquired from the Unitika group and strong sales of sustainable-material products. The Industrial Materials segment posted higher sales on large equipment orders in the air-purification field, but operating profit declined amid weak demand for dryer canvas for the domestic market. In the Functional Materials segment, sales rose in foods and chemicals and in composite materials, but the operating loss widened due to higher depreciation following the start-up of the new plant. The Real Estate and Services segment posted higher sales, but operating profit declined as rising labor costs and energy prices squeezed earnings.

Segment	Metric	FY ended Mar 2026	FY ended Mar 2025
Textiles	Net sales	24,651 million yen	20,217 million yen
Textiles	Operating profit	474 million yen	254 million yen
Industrial Materials	Net sales	7,529 million yen	7,325 million yen
Industrial Materials	Operating profit	199 million yen	208 million yen
Functional Materials	Net sales	6,898 million yen	6,159 million yen
Functional Materials	Operating profit	-150 million yen	-17 million yen
Real Estate and Services	Net sales	5,932 million yen	5,836 million yen
Real Estate and Services	Operating profit	1,896 million yen	1,968 million yen

Full-Year Forecast

For the fiscal year ending March 2027, the company forecasts net sales of 55,700 million yen, operating profit of 1,500 million yen, ordinary profit of 900 million yen, and net income of 600 million yen.

Item	FY ending Mar 2027 (Forecast)	FY ended Mar 2026 (Actual)
Net sales	55,700 million yen	44,554 million yen
Operating profit	1,500 million yen	974 million yen
Ordinary profit	900 million yen	658 million yen
Net income	600 million yen	950 million yen

Shareholder Returns

For the fiscal year ending March 2027, the company forecasts an interim dividend of 25 yen and an annual dividend of 50 yen. Its basic policy is to continue paying stable dividends, and it aims to enhance shareholder returns.

Item	FY ending Mar 2027 (Forecast)
Interim dividend	25 yen
Annual dividend	50 yen

Progress and Revision of the Medium-Term Management Plan ‘TG25-27’

The medium-term management plan ‘TG25-27’ is based on the policies of improving earning power, growing and expanding new core businesses, strengthening the management base, and promoting sustainability management. Reflecting the expansion of the new core businesses, the company revised its segment net sales and operating profit targets so that the Industrial Materials segment and the Functional Materials segment are presented separately. Under the revised plan for the end of fiscal 2027, the company targets interest-bearing debt of 27.7 billion yen (D/E ratio of 0.76), an equity ratio of 39.3%, total assets of 92.4 billion yen, ROA of 2.3%, ROE of 3.9%, and ROIC of 2.9% (actual results at the end of fiscal 2025 were interest-bearing debt of 30.8 billion yen, a D/E ratio of 0.85, an equity ratio of 38.5%, total assets of 93.9 billion yen, ROA of 0.7%, ROE of 2.7%, and ROIC of 1.2%).

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.