Heiwa (6412): FY2025 Results Summary — Accordia Golf Consolidation Doubles EBITDA While Machine Sales Slump

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

Heiwa Corporation (6412), which operates a pachinko and pachislot machine business and a golf business (PGM and Accordia Golf), reported consolidated net sales of 258,107 million yen (+76.9% YoY) and operating income of 43,423 million yen (+56.8% YoY) for the fiscal year ended March 31, 2026. EBITDA doubled to 74,135 million yen (+100.1% YoY), driven by the reflection of Accordia Golf, acquired in the previous fiscal year, in financial results. Profit attributable to owners of parent declined 10.7% YoY to 11,670 million yen. The company also announced a transition to a pure holding company structure effective October 1, 2026 (tentative).

Note: This site classifies the most recently completed fiscal year as FY2025; the company’s presentation labels the same period “FY 3/2026” (the fiscal year ended March 31, 2026), and tables below follow the labels used in the materials.

Consolidated Results (Full-Year Actual)

In the golf business, both income and profit grew thanks to the reflection of Accordia Golf in financial results, supported by relatively stable weather throughout the year and underlying strong demand for playing golf. In the pachinko and pachislot machine business, income and profit fell due to decreased sales of pachinko and pachislot machines. Ordinary income rose 57.8% YoY to 33,652 million yen, while the operating income ratio declined 2.2 percentage points to 16.8%.

Item (million yen)	FY 3/2025	FY 3/2026	YoY
Net Sales	145,867	258,107	76.9%
Operating income	27,690	43,423	56.8%
Operating income ratio	19.0%	16.8%	-2.2pt
Ordinary income	21,332	33,652	57.8%
Profit attributable to owners of parent	13,064	11,670	-10.7%
EBITDA	37,056	74,135	100.1%

Segment Results

In the golf business, net sales rose 129.8% YoY to 230,624 million yen and operating income rose 147.1% YoY to 45,599 million yen, with EBITDA of 75,043 million yen (+179.5% YoY). The gross profit ratio and operating income ratio increased by 4.0 and 1.4 percentage points, respectively, and 7,480 million yen in amortization was recorded, mainly consisting of goodwill related to the acquisition of Accordia Golf. As operational indicators, the number of golf course users was 21,703 thousand people (+132.6% YoY) and revenue per customer was 9,680 yen (-0.9% YoY); on a reference basis combined with Accordia in previous fiscal years, users rose 2.4% and revenue per customer rose 1.9%. The number of golf courses owned/operated was 321 (-1 course YoY).

In the pachinko and pachislot machine business, net sales fell 39.6% YoY to 27,482 million yen and operating income fell 94.0% YoY to 712 million yen. As a separate volume indicator, the number of machines sold decreased to 64,427 units (-41k units YoY), with 32,625 pachinko machines and 31,802 pachislot machines sold. Although the gross profit ratio rose slightly to 57.9% (+0.2pt) in line with a higher proportion of combined units within pachislot machines sold, profit fell mainly due to the decrease in the total number of machines sold; pachinko machines posted an operating loss of 1,809 million yen.

Segment (million yen)	Metric	FY 3/2026	FY 3/2025
Golf Business	Net sales	230,624	100,367
Golf Business	Operating income	45,599	18,450
Pachinko and Pachislot machine business	Net sales	27,482	45,499
Pachinko and Pachislot machine business	Operating income	712	11,858
Eliminations & Corporate expenses	Operating income	-2,889	-2,618

Full-Year Plan for FY Ending March 31, 2027

For the fiscal year ending March 31, 2027, the company plans net sales of 285,900 million yen (+10.8% YoY) and operating income of 52,000 million yen (+19.8% YoY). In the golf business, income and profit are planned to grow through continued promotion of the integration of PGM and Accordia Golf, including enhanced revenue management through appropriate pricing measures. In the pachinko and pachislot machine business, the company will work to enrich its lineup by strategically enhancing IP, planning to sell 38,000 pachinko machines and 53,000 pachislot machines for a total of 91,000 machines (+26k units YoY). In the golf business, 22 million golf course users and revenue of 9,960 yen per customer are planned.

Item (million yen)	FY 3/2026 Results	FY 3/2027 Plan	YoY
Net Sales	258,107	285,900	10.8%
Golf Business	230,624	244,100	5.8%
Pachinko and Pachislot machine business	27,482	41,800	52.1%
Operating income	43,423	52,000	19.8%
Ordinary income	33,652	37,800	12.3%
Profit attributable to owners of parent	11,670	20,300	73.9%
EBITDA	74,135	85,000	14.7%

Shareholder Returns

The company’s policy is to pay stable dividends, giving consideration to the totality of the business plan, financial conditions, and operating results. Internal reserves are allocated to investment in enhancement of research and development capabilities, plant and equipment, and M&A of golf courses. For the fiscal year ending March 31, 2027, the company plans an annual dividend of 80 yen per share (interim 40 yen, year-end 40 yen), unchanged from the 80 yen paid each year from FY 3/2022 through FY 3/2026. The materials state that shareholder return is a key management issue and that the company will do its utmost to maintain a high level of dividend payment.

Medium-Term Plan and Transition to a Holding Company Structure

Under “Medium-Term Management Plan 2027” (FY2025-FY2027), positioned as a period to “Build a Foundation for Maximizing Group Earnings,” numerical targets for FY2027 (FY 3/2028) were left unchanged: net sales of ¥327.0 billion, operating income of ¥73.0 billion, and EBITDA of ¥106.0 billion, with ROE of 11.3% and a net interest-bearing debt / EBITDA ratio of 4.7x (versus 4.7% ROE and 7.6x in FY2025 (FY 3/2026)). The company estimates its cost of equity at around 10%, aims for ROE of at least 11%, and aims for a PBR multiple of more than 1 in the near future.

The Heiwa Group will transition to a pure holding company structure through a company split (simple incorporation-type split) with an effective date of October 1, 2026 (tentative). A new company will be established under Heiwa to succeed the pachinko and pachislot machine business and will become “Heiwa,” while the former Heiwa will change its trade name to “Heiwa Holdings” and become a pure holding company overseeing the golf business (ACCORDIA GOLF Holdings, PGM and others) and the pachinko and pachislot machine business (HEIWA, AMTEX, OLYMPIA and others).

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.