Hikari Tsushin (9435): FY2025 Results Summary — Record Highs Across Revenue, Profit and Dividends

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Note: HIKARI TSUSHIN labels the fiscal year ended March 31, 2026 as “FY 26/3” (Fiscal Year Ended March 2026) in its own materials; the tables and figures below follow the company’s own period labels. HIKARI TSUSHIN reported record-high results for FY 26/3, with revenue of 734.7 billion yen (+7% YoY), recurring operating profit of 186.3 billion yen (+11% YoY) and operating profit of 116.6 billion yen (+11% YoY), driven mainly by strong acquisition in the Electricity, Insurance and Beverage businesses. Net profit reached 151.0 billion yen (+28% YoY) and comprehensive income 306.0 billion yen (+88% YoY), aided by unrealized and realized gains on investment securities. All indicators reached record highs. For FY 27/3 (Fiscal Year Ending March 2027), the company forecasts further record-high revenue and operating profit, an increased annual dividend, and a new share repurchase program.

Consolidated Results (Full-Year Actual)

The table below summarizes HIKARI TSUSHIN’s consolidated results for FY 26/3 compared with FY 25/3, as disclosed in the results presentation. The 11% year-on-year increase in operating profit reflected a foreign exchange gain of 23.0 billion yen (up 25.7 billion yen YoY), while pre-tax profit excluding foreign exchange gains and losses rose 14% YoY to 176.0 billion yen. Net profit growth was supported by unrealized gains on investment securities of 93.8 billion yen and gains on sale of securities of 40.7 billion yen, partly offset by an impairment loss of 0.4 billion yen, alongside a gain on business sale of 3.9 billion yen.

Item (Billions of yen)	FY 26/3 (Results)	FY 25/3 (Results)	YoY
Revenue	734.7	681.5	+7%
Recurring operating profit	186.3	167.1	+11%
Operating profit	116.6	105.0	+11%
Pre-tax profit	199.0	150.7	+32%
Pre-tax profit excluding foreign exchange gains and losses	176.0	153.4	+14%
Net profit	151.0	117.5	+28%
Comprehensive income	306.0	162.1	+88%
(Reference) Operating profit excluding one-time gains and losses	113.1	104.9	+7%

Segment Results

By business segment, operating profit growth was led by Insurance (+15% YoY), Finance (+23% YoY), Beverage (+18% YoY) and Telecommunications (+11% YoY). According to the company, main factors included robust sales in low-voltage electricity and an increase in existing customers (Electricity & Gas), strong IT performance (Telecommunications), an increase in existing customers and cost improvements (Beverage), strong customer acquisition and growth in the customer base (Insurance), performing well in overseas business (Finance), and business restructuring proceeding on track in the EPARK business (Solution).

Segment (Billions of yen)	Revenue FY 26/3	Revenue FY 25/3	Operating Profit FY 26/3	Operating Profit FY 25/3
Electricity & Gas	319.5	288.4	35.8	35.4
Telecommunications	127.5	122.5	28.5	25.7
Beverage	85.3	79.3	10.1	8.5
Insurance	31.4	26.9	9.3	8.0
Finance	45.5	33.1	22.0	17.8
Solution	26.8	28.0	3.3	2.8
Commission-based sales	98.4	108.0	10.0	11.5
One-time gains and losses	–	–	3.5	0.1
Total	734.7	686.5	116.6	105.0

FY2026 Forecast

For FY 27/3 (Fiscal Year Ending March 2027), HIKARI TSUSHIN forecasts revenue of 775.0 billion yen (+5% YoY), recurring operating profit of 201.5 billion yen (+8% YoY) and operating profit of 130.0 billion yen (+11% YoY), all of which would be record highs. The forecast assumes a USD/JPY exchange rate of 157 yen, implying a foreign exchange loss 25.2 billion yen larger than in FY 26/3; as a result, income before tax is forecast to decline 10% YoY to 177.5 billion yen and net income attributable to owners of parent is forecast to decline 20% YoY to 120.0 billion yen, even though income before tax excluding foreign exchange gains/losses is forecast to rise 2% YoY to 179.7 billion yen. By segment, the company expects a large increase in operating profit in Electricity and Finance, an increase in Insurance, Beverage and Telecommunications (IT), and a flat outlook for Telecommunications (Communication Line); it states there is no significant impact on the electricity business from the situation in the Middle East.

Item (Billions of yen)	FY 27/3 (Forecast)	FY 26/3 (Results)	YoY
Revenue	775.0	734.7	+5%
Recurring Operating Profit	201.5	186.3	+8%
Operating Profit	130.0	116.6	+11%
Income before tax	177.5	199.0	-10%
Income before tax excluding FX gains/losses	179.7	176.0	+2%
Net Income (attributable to owners of parent)	120.0	151.0	-20%
(Reference) Customer Acquisition Cost excluding one-time gains and losses	71.5	–	-2%
(Reference) Operating profit excluding one-time gains and losses	130.0	113.1	+14%

Shareholder Returns

HIKARI TSUSHIN revised its FY 26/3 dividend forecast upward in the May 13, 2026 announcement, with the year-end (Q4) dividend increased by 5 yen per share from the previous (February) forecast. The total annual dividend per share for FY 26/3 rose to 751 yen (+13% YoY), an increase for the 15th consecutive fiscal year with no decrease for 23 consecutive fiscal years. The company also resolved a new share repurchase program: up to 350,000 shares (0.79% of shares issued, excluding treasury shares), for a total acquisition cost of up to 10.0 billion yen, over the period July 1, 2026 to June 30, 2027. Over the past 10 fiscal years (FY 18/3 to FY 27/3(E)), cumulative dividends paid totaled 235.0 billion yen and cumulative share repurchases totaled 71.9 billion yen, for a 10-year cumulative total payout ratio of 34%; the FY 27/3(E) share repurchase amount of 11.8 billion yen is the sum of 3.9 billion yen resolved on November 11, 2025 and 8.0 billion yen resolved on May 13, 2026.

Dividend per share (Yen)	FY 26/3 (Announced May)	FY 26/3 (Announced Feb)	FY 25/3 (Actual)	YoY
Total annual dividend	751	746	661	+13%
Q1 regular dividend	181	181	156	+16%
Q2 regular dividend	185	185	161	+14%
Q3 regular dividend	190	190	167	+13%
Q4 regular dividend	195	190	177	+10%

Investment Portfolio (Equity-Method Affiliates)

As part of its investment business, HIKARI TSUSHIN reported (on a management basis including equity-method affiliates) an acquisition cost of investment holdings of 852.3 billion yen (+17% YoY), an unrealized gain (pre-tax) of 624.1 billion yen (+40% YoY) and a market value of 1,476.4 billion yen (+26% YoY). Look-through earnings for the last 12 months were 139.9 billion yen (+21% YoY), giving an earnings yield of 16.3% and a dividend yield of 4.3%; dividend income (P/L) was 33.6 billion yen (+21% YoY) and realized gain (pre-tax) was 67.7 billion yen (+35% YoY), for a combined total of 101.4 billion yen (+30% YoY). The company states the pre-tax IRR was 18% over the last 9 years. As of the end of March 2026, HIKARI TSUSHIN had 42 publicly listed equity-method affiliates, a decrease of 1 company from the end of December 2025 (2 companies added, 3 companies removed).

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.