KINDEN CORPORATION (1944): FY2025 Results Summary — Operating Profit Up 48.0% on a 4.8-Point Gross Margin Gain

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

Note: KINDEN CORPORATION labels the fiscal year ended March 31, 2026 as “FY2026” and the fiscal year ending March 31, 2027 as “FY2027”. Those labels are used throughout this article exactly as they appear in the company’s materials.

KINDEN CORPORATION released “Performance for Fiscal Year Ended March 2026” on April 27, 2026. Consolidated net sales of completed construction contracts rose 6.5% to 750,742 million yen, while operating profit increased 48.0% to 90,256 million yen and profit attributable to owners of parent rose 47.0% to 69,447 million yen. The gross profit margin on completed construction contracts widened by 4.8 points to 23.6%. For FY2027 the company forecasts net sales of 810,000 million yen and operating profit of 97,000 million yen, alongside a planned annual dividend of 240 yen per share and a tender offer for its own shares.

Consolidated Results (Full-Year Actual)

All four headline profit lines grew at a faster rate than sales. Gross profit on completed construction contracts rose 33.2% to 176,911 million yen, outpacing the 20.6% increase in selling, general and administrative expenses to 86,654 million yen. Operating profit margin improved from 8.6% to 12.0%, and profit per share rose from 236.26 yen to 350.53 yen.

Item (Millions of yen)	FY2026	FY2025	Change	% Change
Net sales of completed construction contracts	750,742	705,058	45,683	6.5%
Gross profit on completed construction contracts	176,911	132,803	44,108	33.2%
Gross profit margin	23.6%	18.8%	4.8	–
Selling, general and administrative expenses	86,654	71,823	14,831	20.6%
Operating profit	90,256	60,979	29,277	48.0%
Operating profit margin	12.0%	8.6%	3.4	–
Ordinary profit	94,493	64,546	29,946	46.4%
Profit attributable to owners of parent	69,447	47,250	22,196	47.0%
Profit per share (yen)	350.53	236.26	114.27	–

On the balance sheet, total assets stood at 913,763 million yen as of March 31, 2026 against 821,693 million yen a year earlier, and total net assets at 661,895 million yen against 599,738 million yen. The equity ratio was 72.4% versus 72.9%, and net assets per share were 3,340.44 yen versus 3,014.06 yen. Net cash provided by operating activities was 87,684 million yen, net cash used in investing activities 59,884 million yen and net cash used in financing activities 30,155 million yen.

Non-Consolidated Results and Construction Orders by Operation

On a non-consolidated basis, construction orders rose 16.6% to 722,197 million yen and net sales of completed construction contracts rose 2.8% to 612,505 million yen. Non-consolidated operating profit rose 51.0% to 79,120 million yen, ordinary profit rose 42.6% to 81,502 million yen, and profit rose 50.1% to 63,584 million yen. Order growth was led by Electric Power & Others, which more than doubled, and by Electrical.

Construction orders by operation (Millions of yen)	FY2026	FY2025	Change	% Change	FY2027 (Forecast)
Power Distribution Lining	82,172	78,384	3,788	4.8%	84,000
Electrical	480,193	421,762	58,431	13.9%	455,000
Information & Communications Network	52,762	43,810	8,951	20.4%	53,000
Environmental Management Facilities	54,856	49,618	5,238	10.6%	60,000
Electric Power & Others	52,212	25,585	26,626	104.1%	28,000
Total	722,197	619,160	103,036	16.6%	680,000

By customer, non-consolidated construction orders from The Kansai Electric Power Company, Incorporated rose 13.7% to 96,705 million yen, orders from The Kansai Electric Power Group rose 1.0% to 17,706 million yen, and orders from other customers rose 17.7% to 607,785 million yen. Within the Electrical operation, orders for office buildings rose 47.5% to 227,692 million yen and orders for logistics facilities rose 42.5% to 44,556 million yen, while orders for factories fell 15.2% to 105,474 million yen.

Order Backlog, Domestic and Overseas

The non-consolidated contract backlog at the end of the period rose 23.2% to 581,797 million yen as of March 31, 2026, with the Electrical operation accounting for 427,242 million yen and Electric Power & Others rising 73.4% to 67,514 million yen. The company forecasts a backlog of 591,790 million yen as of March 31, 2027. Combining Kinden and its subsidiaries before adjustment for inter-group transactions, new orders rose 20.2% to 917,893 million yen and net sales rose 6.5% to 768,547 million yen; the domestic ratio was 92.0% of new orders and 90.5% of net sales.

Domestic Total new orders, covering Kinden and its domestic subsidiaries, rose 22.7% to 844,460 million yen and Domestic Total net sales rose 5.2% to 695,552 million yen. Overseas Total new orders fell 2.6% to 73,432 million yen, while Overseas Total net sales rose 20.3% to 72,995 million yen. Domestic subsidiaries as a group lifted new orders 72.5% to 127,353 million yen and net sales 29.4% to 90,524 million yen, with the six domestic subsidiaries related to the electrical business recording new orders of 36,945 million yen against 10,806 million yen a year earlier.

FY2027 Forecast

For FY2027 the company forecasts consolidated net sales of completed construction contracts of 810,000 million yen, up 7.9%, with operating profit of 97,000 million yen, up 7.5%. The forecast operating profit margin is unchanged at 12.0%, while ordinary profit and profit attributable to owners of parent are expected to rise more modestly, by 1.6% and 0.8% respectively. Forecast profit per share of 406.46 yen takes into account the impact of the acquisition of treasury shares resolved at the Board of Directors meeting held on the day of the announcement.

Item (Millions of yen)	FY2027 (Forecast)	FY2026 (Actual)	Change	% Change
Net sales of completed construction contracts	810,000	750,742	59,257	7.9%
Gross profit on completed construction contracts	188,000	176,911	11,088	6.3%
Gross profit margin	23.2%	23.6%	(0.4)	–
Selling, general and administrative expenses	91,000	86,654	4,345	5.0%
Operating profit	97,000	90,256	6,743	7.5%
Ordinary profit	96,000	94,493	1,506	1.6%
Profit attributable to owners of parent	70,000	69,447	552	0.8%
Profit per share (yen)	406.46	350.53	55.93	–

On a non-consolidated basis the company forecasts construction orders of 680,000 million yen, a decrease of 42,197 million yen or 5.8% from the FY2026 level, net sales of completed construction contracts of 670,000 million yen, up 9.4%, and profit of 67,000 million yen, up 5.4%. Capital investment is planned at 30,800 million yen for FY2027, after 59,915 million yen in FY2026, an increase of 49,738 million yen year on year that was driven mainly by buildings and structures at 38,187 million yen. The non-consolidated employee headcount was 8,854 as of March 31, 2026, up 224 or 2.6%, and is forecast at 9,079 as of March 31, 2027.

Shareholder Returns

Cash dividends per share were 130 yen for FY2026, up from 90 yen for FY2025, for a consolidated payout ratio of 37.1%. For FY2027 the company plans 240 yen per share, a payout ratio of 59.0%, which includes a special dividend of 100 yen in connection with achieving the medium-term management plan and growth targets. The company states that dividends and share buybacks will be paid in accordance with the policy outlined in the “Capital Policy in the Medium-term Management Plan” announced on January 31, 2025. Consolidated ROE was 11.0% in FY2026 and is forecast at 12.3% for FY2027.

Item	FY2025	FY2026	FY2027 (Forecast)
Cash dividends per share (yen)	90	130	240
Profit per share, consolidated (yen)	236.26	350.53	406.46
Payout ratio (consolidated)	38.1%	37.1%	59.0%
ROE (consolidated)	8.1%	11.0%	12.3%

On treasury shares, the company completed a repurchase of treasury shares whose term had expired, running from February 3, 2025 to December 23, 2025, for a cumulative total of 9,999 million yen covering 2,310,300 shares. Separately, a tender offer for treasury shares is set for April 28, 2026 to June 1, 2026, covering 33,500,000 shares, or 16.92% of the total number of issued shares, at a price discounted 11% from the simple average of the closing prices of the company’s common shares over the last three months on or before April 24, 2026, for a total acquisition price of 223,679,500,000 yen (7,502 yen x discount rate at 11% x 33,500,000 shares).

Topics: Renewable Energy-related Construction

Renewable energy-related construction, defined by the company as wind, solar, biomass and geothermal power plant construction, continued to expand. Construction orders rose 45.4% to 18.0 billion yen, net sales of completed construction contracts rose 14.0% to 10.8 billion yen, and the contract backlog at the end of the period rose 35.1% to 27.7 billion yen. Wind power plant construction, reissued separately, accounted for 16.1 billion yen of orders, 9.1 billion yen of net sales and 26.0 billion yen of backlog.

Within the wider portfolio, non-consolidated renewal construction excluding power distribution lining also grew: orders rose 23.5% to 278,538 million yen and net sales of completed construction contracts rose 23.5% to 243,625 million yen. Selling, general and administrative expenses on a non-consolidated basis rose 17.4% to 69,230 million yen, of which personnel expenses were 41,629 million yen, up 17.2%.

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.