Watahan Holdings (3199): FY2025 Results Summary — Revenue and Ordinary Income Rise on Construction Strength

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

Watahan Holdings Co., Ltd. reported higher revenue and profit for its most recently completed fiscal year (the year ended March 2026). Net sales rose 1.4% year-on-year to 135.4 billion yen and ordinary income increased 2.4% to 3.9 billion yen, led by a strong construction business, while the retail and trading segments declined. The company plans to raise its full-year dividend for the fiscal year ending March 2027 to 31 yen per share, which would mark a 12th consecutive annual increase.

Note: This site classifies each company’s most recently completed fiscal year as “FY2025.” Watahan’s own materials label this period as the fiscal year ended March 2026; the body text, tables and figures below follow the labels used in the company’s presentation. All figures are taken from the company’s English results-briefing deck, which the company states is a reference translation of the Japanese original.

Consolidated Results (Full-Year Actual)

For the fiscal year ended March 2026, net sales increased 1.4% year-on-year to 135.4 billion yen and ordinary income rose 2.4% to 3.9 billion yen. On the consolidated balance sheet, net income of 2.13 billion yen contributed to the increase in net assets during the year.

Item	FY ended Mar 2026	FY ended Mar 2025	Change
Net sales	135.4 billion yen	133.5 billion yen	+1.4%
Ordinary income	3.9 billion yen	3.81 billion yen	+2.4%
Net income	2.13 billion yen	n/a	n/a

Total assets at the end of the fiscal year were 82.9 billion yen, up 4.5% from a year earlier, comprising current assets of 46.7 billion yen and non-current assets of 36.2 billion yen. Total liabilities increased to 58.4 billion yen and total net assets increased 1.35 billion yen to 24.5 billion yen. Operating cash flow was positive at 890 million yen, investing cash flow was negative at 1.25 billion yen, and financing cash flow was positive at 1.39 billion yen.

Segment Results

By segment, retail net sales decreased 2.8% to 77 billion yen, affected by temporary reductions in sales-floor space from renovations at multiple stores and a pullback from the prior year’s surge in demand for disaster-preparedness products; retail segment profit fell 11.3% to 1.56 billion yen. Construction net sales rose 11.5% to 49.9 billion yen on steady progress in the parking-lot and steel-structure sectors, with segment profit up 22.7% to 2.2 billion yen and the order backlog up 32.4% to 24.5 billion yen. Trading net sales fell 17% to 6.5 billion yen and segment profit fell 22.3% to 660 million yen, reflecting the suspension of sales tied to a review of manufacturing processes for certain active pharmaceutical ingredients.

Segment	Net sales (FY ended Mar 2026)	Net sales (FY ended Mar 2025)	Segment profit (FY ended Mar 2026)	Segment profit (FY ended Mar 2025)
Retail	77 billion yen	79.2 billion yen	1.56 billion yen	1.76 billion yen
Construction	49.9 billion yen	44.7 billion yen	2.2 billion yen	1.79 billion yen
Trading	6.5 billion yen	7.8 billion yen	660 million yen	850 million yen

FY2026 Forecast

For the fiscal year ending March 2027, the company forecasts net sales of 140 billion yen, up 3.4% year-on-year, and ordinary income of 4.0 billion yen, up 2.5%, with an ordinary income margin of 2.9%, unchanged from the prior year. By segment, retail sales are projected to rise 2.7% to 79 billion yen (segment profit up 1.0% to 1.57 billion yen), construction sales to rise 4.4% to 52.1 billion yen (segment profit up 19.2% to 2.63 billion yen), and trading sales to rise 4.4% to 6.7 billion yen (segment profit down 5.9% to 620 million yen, reflecting the review of certain active pharmaceutical ingredient manufacturing processes).

Item	FY ending Mar 2027 (Forecast)	FY ended Mar 2026 (Actual)	Change
Net sales	140 billion yen	135.4 billion yen	+3.4%
Ordinary income	4.0 billion yen	3.9 billion yen	+2.5%
Ordinary income margin	2.9%	2.9%	—

Shareholder Returns

Watahan’s policy is to continue paying a stable dividend. The dividend per share was 30.0 yen for the fiscal year ended March 2026, up from 29.0 yen the prior year, and the company plans a further increase to 31.0 yen for the fiscal year ending March 2027 — a 12th consecutive year of dividend increases. During the fiscal year ended March 2026 the company also acquired treasury stock of 980 million yen.

Fiscal Year	Dividend per share
FY ended Mar 2025	29.0 yen
FY ended Mar 2026	30.0 yen
FY ending Mar 2027 (Forecast)	31.0 yen

Medium-Term Management Plan

Citing an uncertain outlook driven by factors such as the situation in the Middle East, the company revised the target date of its medium-term management plan — a goal of 150 billion yen in net sales and 4.5 billion yen in ordinary income — from the fiscal year ending March 2027 to the fiscal year ending March 2029. Under the plan’s vision, Watahan will continue to work closely with local communities and create new value together with them.

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.