Sankyu (9065): FY2025 Results Summary — Record Net Sales and Current Profit as Plant Engineering Offsets Logistics

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

Note: This article covers the fiscal year ended March 31, 2026. Sankyu’s presentation is titled “Fiscal Year 2026 Financial results briefing,” while the results tables inside it label that year “FY2025” and the prior year “FY2024”; the labels used in the text, tables and segment data below follow the presentation. Sankyu reported net sales of 632 bn yen for the fiscal year ended March 2026, up 24.8 bn yen year on year, and current profit of 32 bn yen, up 0.8 bn yen. The presentation states that both net sales and current profit reached record highs. Operating profit was 43 bn yen, down 0.7 bn yen, as the Logistics Business could not fully offset rising costs, while the Plant Engineering Business achieved record-high net sales despite what the company describes as a minor shutdown-maintenance year.

Consolidated Results (Full-Year Actual)

Net sales of 632 bn yen exceeded the company’s own forecast of 625 bn yen by 7.1 bn yen, and operating profit of 43 bn yen came in 1.2 bn yen above the 42 bn yen forecast. The operating margin was 6.8%, down 0.4 points from 7.2% a year earlier but 0.1 points above forecast. Current profit of 32 bn yen was 1.5 bn yen above forecast, and the current profit margin was 5.0% versus 5.1% in the prior year. ROE was 10.6%, against 10.7% in the prior year.

Item	FY2025 result	FY2024 result	YoY	FY2025 forecast	Compared to forecast
Net Sales	632 bn yen	607 bn yen	+24.8 bn yen	625 bn yen	+7.1 bn yen
Operating profit	43 bn yen	44 bn yen	– 0.7 bn yen	42 bn yen	+1.2 bn yen
Operating margin	6.8 %	7.2 %	– 0.4 %	6.7 %	+0.1 %
Current profit	32 bn yen	31 bn yen	+0.8 bn yen	30 bn yen	+1.5 bn yen
Current profit margin	5.0 %	5.1 %	– 0.1 %	4.8 %	+0.2 %
ROE	10.6 %	10.7 %	– 0.1 %	—	—
Consolidated dividend payout ratio	40.1 %	40.6 %	– 0.5 %	40.3 %	– 0.2 %
Stock buy back	20 bn yen	15 bn yen	+5.0 bn yen	20 bn yen	+0.0 bn yen

Segment Results

The Logistics Business posted net sales of 295 bn yen, down 0.3 bn yen, and operating profit of 10 bn yen, up 0.1 bn yen, for an operating margin of 3.3%. The presentation notes that although unit price revisions are progressing, they have not fully offset rising costs, and identifies a delay in structural reforms as a key focus for the period. Within the segment, Port Operations & Global Logistics saw net sales fall 5.2 bn yen to 117 bn yen amid difficult unit-price negotiations with shipping companies and delays in structural reforms in international logistics; 3PL & General Logistics improved its operating margin to 3.2% from 2.7%; and On-site Logistics & On-site Operations grew net sales by 2.7 bn yen to 107 bn yen, with domestic work volume declining and price pass-through delayed while overseas profitability in the Middle East improved.

The Plant Engineering Business raised net sales by 24.2 bn yen to 308 bn yen, which the presentation describes as a record high, while operating profit fell 1.0 bn yen to 31 bn yen and the operating margin declined to 10.1% from 11.3%. Maintenance net sales rose 10.2 bn yen to 205 bn yen on higher construction volume including accelerated projects and an increase in consolidated subsidiaries. Facility Work net sales rose 13.3 bn yen to 122 bn yen on an increase in environmental-related construction, partly offset by a decline in overseas revenues and an allowance for doubtful accounts recorded at the overseas subsidiary. The Others segment recorded net sales of 29 bn yen and operating profit of 3 bn yen, with the operating margin improving to 8.6% from 7.9%.

Segment	Item	FY2025 result	FY2024 result	YoY
Logistics: Port Operations & Global Logistics	Net Sales	117 bn yen	122 bn yen	-5.2 bn yen
Logistics: Port Operations & Global Logistics	Operating profit	2 bn yen	3 bn yen	-0.5 bn yen
Logistics: Port Operations & Global Logistics	Operating margin	1.9 %	2.2 %	-0.3 %
Logistics: 3PL & General Logistics	Net Sales	117 bn yen	118 bn yen	-0.8 bn yen
Logistics: 3PL & General Logistics	Operating profit	4 bn yen	3 bn yen	+0.6 bn yen
Logistics: 3PL & General Logistics	Operating margin	3.2 %	2.7 %	+0.5 %
Logistics: On-site Logistics & On-site Operations	Net Sales	107 bn yen	105 bn yen	+2.7 bn yen
Logistics: On-site Logistics & On-site Operations	Operating profit	4 bn yen	4 bn yen	+0.0 bn yen
Logistics: On-site Logistics & On-site Operations	Operating margin	3.5 %	3.6 %	-0.1 %
Logistics Business Total	Net Sales	295 bn yen	296 bn yen	– 0.3 bn yen
Logistics Business Total	Operating profit	10 bn yen	10 bn yen	+0.1 bn yen
Logistics Business Total	Operating margin	3.3 %	3.3 %	+0.0 %
Plant engineering: Maintenance	Net Sales	205 bn yen	194 bn yen	+10.2 bn yen
Plant engineering: Maintenance	Operating profit	20 bn yen	21 bn yen	▲ 1.2 bn yen
Plant engineering: Maintenance	Operating margin	9.6 %	10.7 %	▲ 1.1 %
Plant engineering: Facility Work	Net Sales	122 bn yen	109 bn yen	+13.3 bn yen
Plant engineering: Facility Work	Operating profit	12 bn yen	11 bn yen	+0.7 bn yen
Plant engineering: Facility Work	Operating margin	9.8 %	10.4 %	▲ 0.6 %
Plant engineering Business Total	Net Sales	308 bn yen	283 bn yen	+24.2 bn yen
Plant engineering Business Total	Operating profit	31 bn yen	32 bn yen	– 1.0 bn yen
Plant engineering Business Total	Operating margin	10.1 %	11.3 %	– 1.2 %
Others	Net Sales	29 bn yen	28 bn yen	+1.0 bn yen
Others	Operating profit	3 bn yen	2 bn yen	+0.3 bn yen
Others	Operating margin	8.6 %	7.9 %	+0.7 %
Consolidated total	Net Sales	632 bn yen	607 bn yen	+24.8 bn yen
Consolidated total	Operating profit	43 bn yen	44 bn yen	– 0.7 bn yen
Consolidated total	Operating margin	6.8 %	7.2 %	– 0.4 %

FY2026 Forecast

For the fiscal year ending March 2027, which the presentation labels FY2026, Sankyu forecasts net sales of 639 bn yen, operating profit of 47 bn yen, an operating margin of 7.4% and current profit of 33 bn yen. The company states that both net sales and operating profit aim to achieve the final-year targets of the Medium-Term Management Plan. By segment, Logistics is forecast at net sales of 297 bn yen and operating profit of 11 bn yen for a 3.8% operating margin as the company targets an earnings recovery through structural reforms despite uncertain prospects for volume recovery, while Plant Engineering is forecast at net sales of 311 bn yen and operating profit of 33 bn yen for a 10.6% operating margin.

Item	FY2026 Forecast (Full-year)	FY2026 Forecast (First-half)	FY2026 Forecast (Second-half)	FY2025 Result (Full-year)	Comparison (Full-year)
Net Sales	639 bn yen	314 bn yen	325 bn yen	632 bn yen	+6.9 bn yen
Operating profit	47 bn yen	22 bn yen	26 bn yen	43 bn yen	+3.8 bn yen
Operating margin	7.4 %	6.8 %	7.9 %	6.8 %	+0.5 %
Current profit	33 bn yen	16 bn yen	17 bn yen	32 bn yen	+1.5 bn yen
Current profit margin	5.2 %	5.2 %	5.2 %	5.0 %	+0.2 %
Dividend	264 yen	129 yen	135 yen	246 yen	18 yen

Segment	Item	FY2026 Forecast (Full-year)	FY2025 Result (Full-year)	Comparison (Full-year)
Logistics	Net Sales	297 bn yen	295 bn yen	+1.2 bn yen
Logistics	Operating profit	11 bn yen	10 bn yen	+1.5 bn yen
Logistics	Operating margin	3.8 %	3.3 %	+0.5 %
Plant engineering	Net Sales	311 bn yen	308 bn yen	+3.6 bn yen
Plant engineering	Operating profit	33 bn yen	31 bn yen	+2.1 bn yen
Plant engineering	Operating margin	10.6 %	10.1 %	+0.5 %
Others	Net Sales	31 bn yen	29 bn yen	+2.1 bn yen
Others	Operating profit	3 bn yen	3 bn yen	+0.2 bn yen
Others	Operating margin	8.7 %	8.6 %	+0.1 %
Consolidated total	Net Sales	639 bn yen	632 bn yen	+6.9 bn yen
Consolidated total	Operating profit	47 bn yen	43 bn yen	+3.8 bn yen
Consolidated total	Operating margin	7.4 %	6.8 %	+0.6 %

Shareholder Returns

The consolidated dividend payout ratio was 40.1% for the fiscal year ended March 2026, against 40.6% in the prior year and a 40.3% forecast. Share buybacks totalled 20 bn yen, up 5.0 bn yen from 15 bn yen a year earlier and in line with the 20 bn yen plan. For the fiscal year ending March 2027 the dividend is increased from 246 yen to 264 yen, with a dividend payout ratio of 40.1%.

Under the cash allocation plan for FY2025–FY2026, the company plans cash in of approximately 145.0 billion yen over the two periods. The plan (unit: 100 million yen) comprises cash in of 1,450 — operating CF of 1,070 plus asset sales and external borrowings of 380 — against cash out of investment 800 (growth investment 505 and renewal investment 295) and return 650 (dividend 250 and share buyback 400). This compares with the conventional plan of 1,400 in, with investment of 750 (growth investment 580, renewal investment 170) and return of 650. The stated return policy is a dividend payout ratio of 40%, share buybacks using own funds, and the sale of cross-shareholdings. Growth investment includes M&A of approximately 7.0 billion yen in the fiscal year ended March 2026 (HINOKENSETU and Maruei Sangyo) and approximately 11.0 billion yen in the fiscal year ending March 2027 (SWTS, to be confirmed), plus system investment for security infrastructure upgrades and human resource investment.

Sankyu has also launched a stock liquidity improvement project, beginning with a decision to implement a 5-for-1 stock split. The presentation shows average daily trading value of 1.03 billion yen and states that the company is aiming for an approximately 1.5 times increase in trading volume. Other items under continuous review include unwinding of cross-shareholdings and reduction of strategically held shares, an increased incentive for the employee stock ownership plan, promotion of IR for individual investors, enhanced recognition through expanded disclosure information, and an employee stock compensation plan.

Medium-Term Plan and Topics

Alongside the results, Sankyu announced a ‘Vision2030 Revision’. The executive summary sets net sales of 750.0 billion yen+α, management costs at an 11% to 10% level compared with net sales, equity at the 300.0 billion yen level, ROE of 14.6% or higher, employee engagement results of 50% or more, and a digital investment amount of 30.0 billion yen cumulative from FY2023 to FY2031. The company states that targets for capital adequacy and ROE were set in the Medium-Term Management Plan in May 2025, and that the policy for the outlook of the current long-term strategy has been redefined with the aim of achieving record-high ROE.

Segment-specific management objectives (unit: 100 million yen) show consolidated net sales of 6,316 for the fiscal year ended March 2026, a forecast 6,385 for the fiscal year ending March 2027 and a Vision2030 Revision target of 7,500 for the fiscal year ending March 2031, with operating profit of 432, 470 and 600 and operating profit rates of 6.8%, 7.4% and 8.0% respectively. The target for the fiscal year ending March 2031 is net sales of 3,500 and operating profit of 195 (5.6%) for Logistics, 3,700 and 375 (10.1%) for Plant engineering, and 300 and 30 (10.0%) for Others, with the company noting that it will pursue M&A in anticipation of further group expansion in addition to company-wide operating profit enhancement measures.

In Plant Engineering, management resources are being concentrated on four social infrastructure growth areas. Net sales (unit: 100 million yen) are targeted to move from 76 in FY2025 to 100 in FY2030 for infrastructure, from 70 to 100 for environment, from 28 to 100 for wind power, and from 42 to 70 for nuclear power. Stated initiatives include entry into aging social infrastructure (roads, sewage), establishing a construction system for demand expansion from FY2027 onward, winning large-scale offshore wind projects in FY2027, and achieving stable restart, preventive maintenance and fuel transport through a strengthened on-site presence.

On the Middle East situation, the company states that it is currently operating as usual, with five locations of on-site operations and on-site logistics running as usual and approximately 60% of sales in the Middle East under lump-sum contracts. It reports that the impact in FY2025 was limited but continued monitoring is required, citing a March impact on domestic sales of -0.015 billion yen and operating profit of -0.005 billion yen, and on overseas sales of -0.034 billion yen and operating profit of -0.01 billion yen. Annual power fuel costs are given as 2.28 billion yen on a non-consolidated basis, 2.06 billion yen at domestic affiliates and 1.24 billion yen in the overseas business.

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.