Phil Company (3267): FY2025 Results Summary — Higher Sales and 52% Net Income Growth

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

Note: Phil Company 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 has a November fiscal year-end; its most recent completed full year (the fiscal year ended November 30, 2025) is classified here as FY2025.

Phil Company, Inc. released its earnings materials for the fiscal year ended November 30, 2025 on January 14, 2026. Consolidated net sales came to 8,233 million yen (+14.6% year on year), operating profit to 588 million yen (+38.8%), and net income to 398 million yen (+52.0%), for higher sales and higher profit. Its sales-stock indicators (contract order backlog plus development project backlog) reached a record-high 12.1 billion yen, up 70.6% year on year. For the fiscal year ending November 30, 2026 the company projects net sales of 10,000 million yen (+22%) and operating profit of 800 million yen (+36%), and forecasts an annual dividend of 25.00 yen, an increase of 5.00 yen from the previous year’s actual.

Consolidated Results (Full Year)

Net sales for FY2025 rose 15% year on year to 8,233 million yen, as the number of completed contract-order (construction) projects increased 1.6 times versus the prior year. By shifting the sales policy of its development-sales business from “sale upon completion” to “sale after tenants have moved in,” selling prices rose and the gross margin improved, lifting full-year gross profit 23% year on year to 2,224 million yen. Operating profit rose 39% to 588 million yen, as the effect of higher sales outweighed the increase in SG&A expenses that accompanied additional hiring. The fourth quarter was also profitable at the operating level, achieving profitability in every quarter for the first time since the listing. Figures in the tables below are in millions of yen unless otherwise noted.

Item	FY2025 (ended Nov 2025)	FY2024 (ended Nov 2024)	Change (YoY)
Net sales	8,233	7,184	+15%
Gross profit	2,224	1,810	+23%
Gross margin	27.0%	25.2%	―
SG&A expenses	1,635	1,386	+18%
Operating profit	588	424	+39%
Operating margin	7.2%	5.9%	―
Ordinary profit	569	408	+39%
Net income	398	261	+52%

Business Results (Contract Orders / Development Sales)

By business, net sales broke down into contract orders of 4,929 million yen (+30% YoY), development sales of 2,715 million yen (△6% YoY), and other of 588 million yen (+17% YoY). Contract orders drove sales on the back of an increase in completed projects, while development sales, despite the sale of a large project in the fourth quarter, came in slightly below the prior year for the full year. At the end of the fourth quarter, the sales-stock indicators totaled 12.1 billion yen — a contract order backlog of 5,636 million yen and a development project backlog of 6,496 million yen — up 70.6% from the end of the same period a year earlier. Fourth-quarter contract orders reached 24 projects and an order value of 2,298 million yen, both quarterly records.

Category	FY2025 Net Sales	FY2024 Net Sales	Change (YoY)
Contract orders	4,929	3,788	+30%
Development sales	2,715	2,893	△6%
Other	588	503	+17%

Full-Year Forecast

For the fiscal year ending November 30, 2026, the company forecasts net sales of 10,000 million yen (+22% YoY), gross profit of 2,500 million yen (+12% YoY, gross margin 25.0%), operating profit of 800 million yen (+36% YoY, operating margin 8.0%), ordinary profit of 750 million yen (+32% YoY), and net income of 600 million yen (+51% YoY). Of the 10.0 billion yen sales plan, roughly 4.0 billion yen is already secured for recognition based on the contract order backlog at the start of the period, and development sales are expected to contribute 4.0 billion yen from projects with high sales certainty based on past results. Contract order value, a key operating KPI, is planned to rise sharply to 9.5 billion yen from 5.8 billion yen in the prior year.

Item	FY2026 Forecast	FY2025 Actual
Net sales	10,000	8,233
Gross profit	2,500	2,224
Gross margin	25.0%	27.0%
Operating profit	800	588
Operating margin	8.0%	7.2%
Ordinary profit	750	569
Net income	600	398

Shareholder Returns

The company’s policy is to prioritize strategic and important business investment while continuing and strengthening stable shareholder returns at a high level. Share buybacks are conducted after comprehensively weighing earnings, the business environment, and opportunities for growth investment. The dividend forecast for the fiscal year ending November 30, 2026 is 25.00 yen per share, an increase of 5.00 yen from the previous year’s actual.

Medium-Term Plan / Topics

The company pushed back by one year the target timing for achieving the 1.2 billion yen operating profit set out in its medium-term management plan, reflecting the prior year’s contract order value, and positioned the fiscal year ending November 30, 2026 as “an offensive year that will form the foundation for sustainable growth.” The plan rests on three pillars: scaling up existing businesses (area expansion, broadening the customer base, and strengthening the tenant-attraction strategy); expansion into adjacent areas (a “public-private town-development model” through collaboration with local governments, and building a “stock-revenue model” such as master leases); and improving the efficiency of the business platform together with human-resource development. In March 2026, it will open a new Chubu Branch (Nagoya) to advance its business in the Chukyo region. As challenge areas, it is also pursuing “demonstration and templating” across three domains: sophistication of development-project schemes, expansion of the Premium Garage House business, and interim-use solutions for bridge periods.

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.