UNISOL Holdings (7128): FY2025 Results Summary — Lower Revenue and Profit; ¥101 Dividend under DOE 3.5% Policy

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

Note: UNISOL Holdings has a December fiscal year-end; FY2025 in this article refers to the fiscal year ended December 31, 2025, following the labeling used in the company’s materials. The company changed its corporate name to UNISOL Holdings on January 1, 2026.

UNISOL Holdings Corporation (7128), a technical trading group whose segments span Machinery & Tools, Construction Products, Construction Machinery, and IoT Solutions, reported a decline in revenue and profit for FY2025. Net sales were 159,036 million yen (▲1.7% YoY) and operating profit was 3,380 million yen (▲12.4%). Profit attributable to owners of the parent fell 58.7% to 1,906 million yen, reflecting the absence of the prior year’s gain on sales of investment securities (2,378 million yen in FY2024) and an extraordinary loss of approximately 0.9 billion yen in FY2025. The annual dividend was 101 yen per share, and the company guides for 101 yen again in FY2026 under a DOE 3.5% policy.

Consolidated Results (Full-Year Actual)

Net sales declined 1.7% to 159,036 million yen, with the Construction Products segment down 2,876 million yen. Gross profit nonetheless rose 2.0% to 26,170 million yen as the gross profit ratio improved 0.6 points to 16.5%, led by the Machinery & Tools segment (+1,044 million yen). SG&A expenses increased 4.5% to 22,789 million yen, and operating profit fell 12.4% to 3,380 million yen (operating profit ratio 2.1%, ▲0.3 point). Extraordinary profit dropped 93.6% to 170 million yen (FY2024 included a 2,378 million yen gain on sales of investment securities), while extraordinary loss doubled to 855 million yen, including a 200 million yen provision for allowance for doubtful accounts and a 512 million yen impairment loss.

Item (JPY million)	FY2024	FY2025	Change	% Change
Net sales	161,716	159,036	▲2,679	▲1.7%
Gross profit	25,666	26,170	504	2.0%
SG&A expenses	21,806	22,789	983	4.5%
Operating profit	3,860	3,380	▲479	▲12.4%
Ordinary profit	4,659	4,179	▲480	▲10.3%
Profit attributable to owners of the parent	4,613	1,906	▲2,713	▲58.7%

Against the FY2025 forecast, net sales landed at 98.2% (forecast: 162,000 million yen), operating profit at 96.6% (forecast: 3,500 million yen), and ordinary profit at 101.9% (forecast: 4,100 million yen), while profit attributable to owners of the parent reached 76.3% of the 2,500 million yen forecast due to the extraordinary loss. On the balance sheet, total assets were 117,020 million yen and the equity capital ratio improved from 59.9% to 62.1%. Net cash provided by operating activities was 5,503 million yen and free cash flow was 4,241 million yen.

Segment Results

Machinery & Tools (66.0% of net sales) posted sales of 104,904 million yen (+0.1%) and operating profit of 2,104 million yen (+4.2%). Within the segment, Machinery (Overseas) sales rose 14.4% to 27,613 million yen — with North America up 28.1% — while Machinery (Japan) fell 10.4% to 32,462 million yen and Tools (Japan) edged up 0.9% to 44,827 million yen. Construction Products sales fell 6.4% to 42,070 million yen with operating profit down 39.5% to 953 million yen, as demand for construction materials remained sluggish amid rising construction costs, halted or delayed large-scale projects, and labor shortages. Construction Machinery sales declined 2.9% to 8,165 million yen. IoT Solutions grew 8.6% to 3,896 million yen with operating profit up 30.8% to 246 million yen, helped by camera demand from major security companies and large-scale projects such as data centers.

Segment	Net sales (FY2025)	YoY	Operating profit (FY2025)	YoY
Machinery & Tools	104,904	0.1%	2,104	4.2%
Construction Products	42,070	▲6.4%	953	▲39.5%
Construction Machinery	8,165	▲2.9%	147	▲26.3%
IoT Solutions	3,896	8.6%	246	30.8%
Adjustment	—	—	▲71	—
Total (JPY million)	159,036	▲1.7%	3,380	▲12.4%

FY2026 Forecast

For FY2026, the company forecasts an increase in revenue and profit: net sales of 165,000 million yen (+3.8%), operating profit of 3,400 million yen (+0.6%), and profit attributable to owners of the parent of 2,100 million yen (+10.1%). By segment, net sales are projected at 108,800 million yen for Machinery & Tools (+3.7%), 44,000 million yen for Construction Products (+4.6%), 7,800 million yen for Construction Machinery (▲4.5%), and 4,400 million yen for IoT Solutions (+12.9%).

Item (JPY million)	FY2026 Forecast	FY2025 (Actual)	% Change
Net sales	165,000	159,036	3.8%
Gross profit	27,260	26,170	4.2%
SG&A expenses	23,860	22,789	4.7%
Operating profit	3,400	3,380	0.6%
Ordinary profit	4,100	4,179	▲1.9%
Profit attributable to owners of the parent	2,100	1,906	10.1%

Shareholder Returns

The company changed its dividend policy from a payout-ratio basis to a DOE (dividend on equity) basis of 3.5% (shareholders’ equity × 3.5%) to realize stable and continuous progressive dividends, and accelerated the timeline for achieving DOE 3.5% from the next medium-term plan (FY2027-29) to FY2025. The FY2025 ordinary dividend was 101 yen per share (DOE 3.5%), up from an ordinary dividend of 75 yen in FY2024 (which also carried a special dividend of 32 yen). The FY2026 dividend forecast is 101 yen per share. The company also states it will provide flexible shareholder returns, including special dividends, in accordance with profit levels and financial conditions.

Item	FY2024	FY2025	FY2026 (Forecast)
Ordinary dividend per share (JPY)	75	101	101
Special dividend per share (JPY)	32	—	—
DOE (calculated by ordinary dividends)	2.7%	3.5%	3.5%

Medium-Term Plan / Topics

Under the current medium-term management plan “UNISOL” (2022-2026), the company revised the final-year (FY2026) plan: the net sales target was lowered 8% from 180 billion yen to 165 billion yen, citing stagnation of capital investment projects due to U.S. trade policies (▲13.8 billion yen) and weaker construction demand (▲3.5 billion yen), and the operating profit forecast was revised from 5.8 billion yen to 3.4 billion yen (▲42%). Integration synergies reached 828 million yen in FY2025 against a 1.0 billion yen target for FY2026. The company acknowledges that the current plan’s quantitative targets have not been achieved.

A new medium-term management plan (2027-2029) is being formulated, with its announcement moved up to June 2026 to enhance management speed, improve capital efficiency and market capitalization, and execute capital policies. Its stated direction includes improving profitability through “Unique Solutions,” optimizing the business portfolio, and balance-sheet management including further reduction of policy-oriented stock holdings. In January 2026, the machinery and tools businesses of the former Maruka and G-Net were integrated to establish a new company, Unisol Corporation, while the construction machinery division was spun off as a new Maruka Corporation. The group also announced an investment in Mowito Robotics, a physical-AI startup (January 19, 2026).

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.