Hoshizaki (6465): FY2025 Results Summary — Record Sales and Operating Income, 30 Billion Yen Buyback Announced

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HOSHIZAKI CORPORATION (stock code: 6465), a manufacturer of commercial kitchen appliances and equipment, reported consolidated results for FY 2025 (fiscal year ended December 31, 2025). Sales rose 9.1% year-on-year to 485,890 million yen and operating income rose 1.7% to 51,932 million yen, with both net sales and operating income reaching record highs and marking the fifth consecutive fiscal year of growth in sales and income. Adjusted operating income, which excludes amortization of goodwill and the impact of hyperinflation accounting, increased 5.5% to 61,094 million yen and exceeded both the prior year and the forecast made at the beginning of the fiscal year. For FY 2026 the company forecasts sales of 520,000 million yen and operating income of 55,600 million yen, and it announced the purchase of 30 billion yen in treasury shares alongside a revision of its required cash and deposit levels.

Consolidated Results (Full-Year Actual)

Sales increased 40,395 million yen year-on-year to 485,890 million yen (109.1% of the prior year), exceeding the February 13, 2025 forecast of 460,000 million yen by 25,890 million yen (105.6%). Gross profit rose to 181,441 million yen (109.0%), while selling, general and administrative expenses increased to 129,508 million yen (112.2%). Operating income was 51,932 million yen (101.7%), below the 53,500 million yen forecast (97.1%), and the operating income margin declined 0.8pt to 10.7%. The company attributes the margin decline to a one-time increase in acquisition-related costs and higher costs such as personnel expenses. Ordinary income decreased 1.9% to 56.3 billion yen, reflecting a decrease in foreign exchange gains from foreign currency deposits (previous period: foreign exchange gain of 1.9 billion yen; current period: 0 yen). Profit attributable to owners of parent increased 3.3% to 38,148 million yen.

Adjusted operating income, defined as operating income plus amortization of investment differences related to business combinations (goodwill and intangible assets) plus the impact of hyperinflation accounting, was 61,094 million yen (105.5%), with an adjusted operating income margin of 12.6% (down 0.4pt). Amortization of goodwill and intangible assets, etc. rose to -4,669 million yen (from -3,341 million yen), and the impact of inflation accounting at Ozti in Turkey was -4,493 million yen (from -3,508 million yen). The company notes that the provisional accounting treatment for the May 2024 business combinations with TECHNOLUX and HKR EQUIPMENT has been finalized and the FY 2024 consolidated statement of profit or loss has been revised accordingly.

Item (Millions of yen)	FY 2024 Results	FY 2025 Results	Year-on-year Change	Year-on-year (%)	FY 2025 Forecast (Feb 13, 2025)	Over Forecast (%)
Sales	445,495	485,890	+40,395	109.1	460,000	105.6
Gross profit	166,449	181,441	+14,992	109.0	173,900	104.3
Selling, general and administrative expenses	115,398	129,508	+14,111	112.2	120,400	107.6
Operating income	51,050	51,932	+881	101.7	53,500	97.1
(Operating income margin)	11.5%	10.7%	-0.8 %	–	11.6%	–
Ordinary income	57,394	56,305	-1,088	98.1	55,900	100.7
Profit attributable to owners of parent	36,936	38,148	+1,212	103.3	38,300	99.6
Adjusted operating income	57,901	61,094	+3,193	105.5	59,088	103.4
(Adjusted operating income margin)	13.0%	12.6%	-0.4 %	–	12.8%	–

Segment Results

By reporting segment (classified according to the location of head offices), sales in Japan increased 4.3% to 226.7 billion yen and overseas sales increased 13.7% to 259.1 billion yen, lifting the overseas sales ratio to 53.3% (up 2.2pt). In Japan, revenue increased by focusing on expanding sales to non-food and beverage markets such as distribution and sales and processing and sales, in addition to the food and beverage market. Overseas, in addition to the contribution of newly consolidated companies, sales increased due to strong performance in the dispenser business in the Americas and the refrigerator business in the Americas and India. Adjusted operating income was 30.4 billion yen in Japan (up 5.8%, margin 13.4%, up 0.2pt) and 30.6 billion yen overseas (up 5.2%, margin 11.8%, down 0.9pt). On a local currency basis, year-on-year sales were 114.2% in the Americas, 107.1% in Europe and 123.7% in Asia.

Reporting Segment (Millions of yen)	FY 2024 Results	FY 2025 Results
Japan	217,485 (48.8%)	226,739 (46.7%)
Americas	107,671 (24.2%)	121,183 (24.9%)
Europe	53,039 (11.9%)	57,648 (11.9%)
Asia	67,298 (15.1%)	80,319 (16.5%)
Consolidated	445,495	485,890

By product group, refrigerators were the largest contributor to sales growth, rising 19,192 million yen (116.3% of the prior year) to 136,627 million yen. Ice machines rose to 90,727 million yen (104.2%), dishwashers to 34,716 million yen (115.1%), dispensers to 41,466 million yen (107.1%), maintenance and repair to 71,083 million yen (106.1%) and other products to 61,706 million yen (104.5%). Non-Hoshizaki products added 3,554 million yen to consolidated sales. By area, sales changes from the prior year were +9,254 million yen in Japan, +15,297 million yen in the Americas, +3,776 million yen in Europe and +15,937 million yen in Asia, with foreign exchange effects of -3,867 million yen.

Product Group (Millions of yen)	FY 2024 Results	FY 2025 Results	Change	Ratio to Previous Year
Ice Machines	87,090	90,727	+3,637	104.2%
Refrigerators	117,435	136,627	+19,192	116.3%
Dishwashers	30,162	34,716	+4,555	115.1%
Dispensers	38,725	41,466	+2,741	107.1%
Maintenance and Repair	67,018	71,083	+4,065	106.1%
Other Products	59,054	61,706	+2,652	104.5%

FY 2026 Forecast

For FY 2026 (fiscal year ending December 31, 2026), the company forecasts sales of 520 billion yen (up 7.0% year-on-year), with Japan at 236.1 billion yen (up 4.1%) and overseas at 283.9 billion yen (up 9.6%), bringing the overseas sales ratio to 54.6% (up 1.3pt). In Japan, in addition to firm service consumption, the company expects strong inbound demand, particularly from South Korea, Taiwan, Europe, the United States and Australia. Overseas, although the impact of macroeconomic trends and the competitive environment will remain severe, demand is expected to remain firm, particularly for key products (ice machines, refrigerators and dispensers). Operating income is forecast at 55.6 billion yen (up 7.1%) with a flat operating income margin of 10.7%; the company expects higher labor costs and price competition but aims for higher profits by improving productivity and its cost structure. Adjusted operating income is forecast at 68.2 billion yen (up 11.6%) with a margin of 13.1% (up 0.5pt): Japan 32.0 billion yen (up 5.3%, margin 13.6%) and overseas 36.2 billion yen (up 18.4%, margin 12.7%). Ordinary income is forecast at 59.0 billion yen (up 4.8%) and profit attributable to owners of parent at 38.2 billion yen (up 0.1%), as the effective tax rate is expected to rise due to the tax impact of goodwill amortization. Exchange rate assumptions (average of the period) are 150 yen per US dollar, 170 yen per euro and 1.75 yen per Indian rupee. Amortization of goodwill and intangible assets is planned at 8,641 million yen and the impact of inflation accounting at -3,959 million yen.

Item (Millions of yen)	FY 2026 Forecast (Feb 13, 2026)	FY 2025 Results	Year-on-year Change	Year-on-year (%)
Sales	520,000	485,890	34,109	107.0
Gross profit	196,200	181,441	14,759	108.1
Selling, general and administrative expenses	140,600	129,508	11,091	108.6
Operating income	55,600	51,932	3,668	107.1
Ordinary income	59,000	56,305	2,694	104.8
Profit attributable to owners of parent	38,200	38,148	51	100.1
Adjusted operating income	68,200	61,094	7,106	111.6

Capital investment is forecast at 14,795 million yen in tangible assets and 4,394 million yen in intangible assets for FY 2026 (FY 2025: 11,325 million yen and 2,527 million yen), depreciation and amortization at 10,501 million yen (2.0% of sales) and R&D expense at 6,486 million yen (1.2% of sales). Priority measures by region for fiscal 2026 include enhancing the earnings base in Japan, strengthening market competitiveness through group synergy in the Americas, expanding the market and supply structure in India, and strengthening profitability by optimizing operations in Europe, including Ozti in Türkiye and Hoshizaki Europe.

Shareholder Returns and Capital Policy

Under its Basic Shareholder Return Policy, the company aims to pay dividends in a sustainable and stable manner, targeting a dividend payout ratio of 40% or higher and paying dividends in accordance with earnings growth, and will consider purchasing treasury stock flexibly while comprehensively considering growth and strategic investments and the realization of an optimal cash position. The annual dividend per share for 2025 was 115 yen (2024: 105 yen), with a dividend payout ratio of 42.6% (2024: 40.6%). The total return ratio for 2024 was 79.4%, reflecting the 20 billion yen purchase of treasury shares announced in 2024. For 2026 the dividend is to be determined by performance, with a payout ratio target of 40% or more.

Item	2024	2025	2026
Annual dividend per share (yen)	105	115	Determined by performance
Dividend payout ratio	40.6%	42.6%	40% or more
Total return ratio	79.4%	42.6%	–

On February 13, 2026 the company announced the purchase of 30 billion yen in treasury shares, following a review of its required cash and deposits. The required cash and deposit level at the end of 2026 under the five-year management vision was about 170 billion yen (safety fund 60 billion yen, working capital 90 billion yen, M&A investment 50 billion yen, with a previous expectation of approximately 180 billion yen in cash and deposits at the end of 2026); after the revision, the required level is about 150 billion yen (safety fund 50 billion yen, working capital 70 billion yen) with the 30 billion yen treasury share purchase. Compared with the five-year management vision disclosed on February 9, 2022, the latest outlook as of February 13, 2026 shows operating cash flow, etc. of +225 billion yen (vision: +170 billion yen), capital investment of -55 billion yen (vision: -50 billion yen), future strategic investment (M&A) of -120 billion yen (vision: -125 billion yen), dividend payments of -120 billion yen (vision: -65 billion yen), purchase of treasury shares of 50 billion yen, and strengthening of the financial base of -20 billion yen, with cash and deposits moving from 240.7 billion yen at the end of December 2021 to 150 billion yen at the end of December 2026.

Topics

Balance sheet: Total assets at December 31, 2025 were 575,646 million yen (up 28,007 million yen from December 31, 2024), with cash and cash equivalents of 177,089 million yen (down 62,965 million yen) and non-current assets of 233,332 million yen (up 76,001 million yen). Total net assets were 413,914 million yen (up 31,099 million yen), and the shareholder equity ratio was 68.2% (from 66.4%).

Inflation accounting: Due to the hyperinflationary economy in Turkey, hyperinflationary accounting is applied to the overseas subsidiary Ozti. The cumulative inflation rate at the end of December 2025 was +211% versus three years earlier, and the application is expected to be lifted around 2027. For FY 2025, Ozti’s net sales increased by 1.8 billion yen compared to before the adoption of inflation accounting, operating income was affected by -4.5 billion yen, and a gain on net monetary position of 2.1 billion yen was recorded in non-operating income.

Products and M&A: In Japan, 66 models in 4 product groups underwent model changes to natural refrigerant, and the company aims for an 87% natural refrigerant use rate for its refrigerators and freezers by the end of fiscal 2027 (46% at the end of fiscal 2024, 364 models). New large-scale and labor-saving products, including a large ice maker with a daily ice-making capacity of 5 tons, a large conveyor washing machine and a vacuum microwave thawing machine, were launched between May and July 2025. The group’s consolidated companies numbered 62 at December 31, 2025, following the acquisition of CMI in January 2025, the asset acquisition of Arico in February 2025 and the acquisition of SCC in June 2025.

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.