Galilei (6420): FY2025 Results Summary — Fifth Consecutive Year of Sales and Profit Growth, Net Income of ¥12.2 Billion

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

Note: Galilei had not published an English-language version of its results presentation for the fiscal year ended March 31, 2026 at the time of writing; 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. This site classifies the company’s most recently completed fiscal year — labeled the fiscal year ended March 31, 2026 in the materials — as FY2025 in the title and slug; labels in the body and tables follow the source materials.

Galilei reported consolidated net sales of ¥138,616 million for the fiscal year ended March 31, 2026, up 6.1% year on year, marking its fifth consecutive year of revenue growth. Sales of refrigerated and freezer showcases, food service equipment, and large panel refrigeration systems expanded, and operating profit rose 3.1% year on year to ¥17,078 million, the fifth consecutive year of profit growth. Profit attributable to owners of parent was ¥12,197 million (up 1.6% year on year), and both net sales and profits finished above the revised full-year forecast.

Consolidated Results (Full-Year Actual)

Figures are in millions of yen. The cost-of-sales ratio improved slightly to 72.1% (72.4% in the previous fiscal year), and gross profit came to ¥38,629 million (up 7.0% year on year; gross profit margin 27.9%). Selling, general and administrative expenses increased to ¥21,550 million (up 10.4% year on year), but the company secured higher profits, led by refrigerated and freezer showcase sales, even as increases in materials and personnel costs continued. Operating profit was ¥17,078 million (up 3.1% year on year; operating margin 12.3%), ordinary profit was ¥17,943 million (up 4.5% year on year), and profit attributable to owners of parent was ¥12,197 million (up 1.6% year on year).

Item	FY Ended March 31, 2026	FY Ended March 31, 2025	YoY
Net sales	138,616	130,639	106.1%
Gross profit	38,629	36,098	107.0%
Operating profit	17,078	16,572	103.1%
Ordinary profit	17,943	17,175	104.5%
Profit attributable to owners of parent	12,197	12,008	101.6%

Sales by Product Category

By sales category, refrigerated and freezer showcase sales reached ¥54.3 billion (104% of the prior year), setting a record high for the second consecutive year. Energy-saving renovation demand in the retail distribution industry remained firm, and sales to supermarkets and drugstores increased. Food service sales were ¥31.9 billion (105%), supported by inbound demand in the restaurant industry, strengthened proposals to users, and sales of dishwashers and automatic noodle boilers from Nihon Senjoki. Large panel refrigeration equipment sales rose sharply to ¥18.3 billion (116%), demonstrating group synergies centered on construction demand for logistics centers and refrigerated warehouses. Small panel refrigeration equipment sales were ¥9.4 billion (121%), with strong sales to supermarkets and convenience stores. Meanwhile, large food processing machinery sales declined to ¥7.4 billion (88.9%), reflecting the reaction to the previous year’s strong results and a decrease in large projects.

Sales Category	FY Ended March 31, 2026	FY Ended March 31, 2025	YoY
Refrigerated and freezer showcase sales	¥54.3 billion	¥52.9 billion	104%
Food service sales	¥31.9 billion	¥30.5 billion	105%
Large panel refrigeration equipment sales	¥18.3 billion	¥15.8 billion	116%
Small panel refrigeration equipment sales	¥9.4 billion	¥7.8 billion	121%
Service sales	¥15.8 billion	¥13.6 billion	107%
Large food processing machinery sales	¥7.4 billion	¥8.4 billion	88.9%
Medical and scientific products sales	¥1.2 billion	¥1.2 billion	100%

Full-Year Forecast

For the fiscal year ending March 31, 2027, the company forecasts full-year consolidated net sales of ¥144,923 million (up 4.5% year on year), operating profit of ¥17,155 million (up 0.4% year on year), ordinary profit of ¥17,975 million (up 0.2% year on year), and profit attributable to owners of parent of ¥12,370 million (up 1.4% year on year). Net sales are expected to remain firm, centered on the showcase and food service businesses, and with inquiries for logistics and food-plant projects also strong, the company projects higher revenue. For operating profit, while geopolitical-risk uncertainty and rising energy and logistics costs are anticipated, the company expects a slight profit increase as group companies recover.

Item	FY Ended March 31, 2026 (Actual)	FY Ending March 31, 2027 (Forecast)	YoY
Net sales	138,616	144,923	104.5%
Gross profit	38,629	39,198	101.5%
Operating profit	17,078	17,155	100.4%
Ordinary profit	17,943	17,975	100.2%
Profit attributable to owners of parent	12,197	12,370	101.4%

Shareholder Returns

For shareholder returns, the company has adopted a policy for the three years from the fiscal year ended March 31, 2025 through the fiscal year ending March 31, 2027 that uses a DOE (consolidated dividend on equity) of 3% as the benchmark. DOE for the fiscal year ended March 31, 2026 was 3.0%, with total dividends of ¥3,287 million (rising in stages from 1.8% and ¥1,242 million in the fiscal year ended March 31, 2022). For the fiscal year ending March 31, 2027, the company forecasts a year-end dividend of ¥89 (an increase of ¥7) and a payout ratio of 28.6% (versus 26.9% for the fiscal year ended March 31, 2026).

Fiscal Year	Total Dividends (¥ million)	DOE
FY ended March 31, 2022	1,242	1.8%
FY ended March 31, 2023	1,464	1.9%
FY ended March 31, 2024	2,101	2.4%
FY ended March 31, 2025	2,964	3.0%
FY ended March 31, 2026	3,287	3.0%

Growth Investments / Topics

In growth investment, the company is constructing the Shiga No. 2 Plant as the mother factory for the refrigerated and freezer showcase business, with total planned investment of approximately ¥10 billion and the start of operation scheduled for December 2026. Once in operation, together with the existing plant it will expand annual production capacity by approximately 30%, targeting an annual production system of 60,000 units. In Osaka, the company is developing the Value-Up Center, a base for training engineers, with total planned investment of approximately ¥3.6 billion; building construction started in October 2025, with completion scheduled for March 2027. Overseas, its demonstration project for local production of commercial refrigerators and freezers in India was selected for a subsidy from the Ministry of Economy, Trade and Industry (second public offering, large-scale demonstration in non-ASEAN member countries), with total project costs of ¥1.57 billion (of which the subsidy application amount is ¥785 million), under which it is building a local production and supply structure. The company also launched its first overseas showrooms, F’S DESIGN COURT, successively in Bangkok (Thailand), Ho Chi Minh City (Vietnam), and Jakarta (Indonesia).

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.