Hisaka Works (6247): FY2025 Results Summary — Sales Up 17.0% and a New “Challenge2028” Plan

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

HISAKA WORKS, LTD. (6247), a maker of industrial machinery centred on plate heat exchangers, process engineering equipment and ball valves, reported FY2025 (fiscal year ended March 31, 2026) net sales of 44,890 million yen, up 6,537 million yen or 17.0% year on year. Operating profit rose 12.7% to 3,303 million yen and ordinary profit rose 6.8% to 3,620 million yen, while profit attributable to owners of parent fell 8.8% to 3,449 million yen. Alongside the results, the company disclosed its new medium-term management plan “Challenge2028”, targeting operating profit of 5,000 million yen in FY2028 and ROE of 8% or more in the fiscal year ending March 2031.

Consolidated Results (Full-Year Actual)

Orders received edged up 0.8% to 42,591 million yen, with overseas orders received (included) of 9,640 million yen, up 4.3%. Net sales grew 17.0% to 44,890 million yen, of which overseas net sales (included) were 9,510 million yen, up 2.1%. The operating profit ratio was 7.4% in FY2025 against 7.6% in FY2024, and the ordinary profit ratio was 8.1% against 8.8%. Profit attributable to owners of parent declined despite higher operating and ordinary profit, giving a profit ratio of 7.7% versus 9.9% a year earlier.

Item (Millions of Yen)	FY2024 Full-Year	FY2025 Full-Year	Inc./Dec.	Rate of Change
Orders Received	42,269	42,591	322	0.8%
Overseas Orders Received (Included)	9,243	9,640	397	4.3%
Net Sales	38,353	44,890	6,537	17.0%
Overseas Net Sales (Included)	9,318	9,510	192	2.1%
Operating Profit	2,930	3,303	372	12.7%
Operating Profit Ratio	7.6%	7.4%	―	―
Ordinary Profit	3,391	3,620	229	6.8%
Ordinary Profit Ratio	8.8%	8.1%	―	―
Profit Attributable to Owners of Parent	3,782	3,449	▲ 332	▲ 8.8%
Profit Ratio	9.9%	7.7%	―	―

Results also came in ahead of the company’s own FY2025 forecasts. Orders received reached 103.9% of the forecast, net sales 102.0%, operating profit 110.1%, ordinary profit 108.1% and profit attributable to owners of parent 128.2%.

Item (Millions of Yen)	FY2025 Forecasts	FY2025 Results	Variance	Achievement Ratio
Orders Received	41,000	42,591	1,591	103.9%
Net Sales	44,000	44,890	890	102.0%
Operating Profit	3,000	3,303	303	110.1%
Ordinary Profit	3,350	3,620	270	108.1%
Profit Attributable to Owners of Parent	2,690	3,449	759	128.2%

Segment Results

The Process Engineering (PE) Segment drove the year, with net sales up 30.6% to 22,405 million yen and segment profit up 50.2% to 2,129 million yen; the company cites large-scale food projects such as aseptically packaged rice production plants, strong sales of fully automated continuous sterilization and cooling systems, large-scale pharmaceutical projects such as culture plants, and a large dyeing and finishing equipment project for Southeast Asia. The Heat Exchanger Segment lifted net sales 6.7% to 17,229 million yen on major energy-related overseas sales and domestic maintenance demand, but segment profit fell 26.4% to 988 million yen on expenses related to the Konoike plant restructuring and allowances recorded for sales strategy purposes. The Valve Segment grew net sales 4.6% to 5,183 million yen and segment profit 25.3% to 366 million yen, helped by environmental water treatment, confectionery and civil engineering demand and offset in part by rising raw material prices. Order backlog at the end of the period was 25,036 million yen, down 8.4%.

Segment	Item (Millions of Yen)	FY2024 Full-Year	FY2025 Full-Year	Rate of Change
Heat Exchanger Segment	Orders Received	16,793	17,193	2.4%
Heat Exchanger Segment	Net Sales	16,152	17,229	6.7%
Heat Exchanger Segment	Segment Profit	1,342	988	▲ 26.4%
Process Engineering Segment	Orders Received	20,165	20,000	▲ 0.8%
Process Engineering Segment	Net Sales	17,158	22,405	30.6%
Process Engineering Segment	Segment Profit	1,418	2,129	50.2%
Valve Segment	Orders Received	5,221	5,324	2.0%
Valve Segment	Net Sales	4,954	5,183	4.6%
Valve Segment	Segment Profit	292	366	25.3%
Other	Orders Received	88	72	▲ 18.3%
Other	Net Sales	88	72	▲ 18.3%
Other	Segment Profit	65	52	▲ 19.4%
Total	Orders Received	42,269	42,591	0.8%
Total	Net Sales	38,353	44,890	17.0%
Total	Operating Profit (after ▲ 187 / ▲ 234 adjustment)	2,930	3,303	12.7%

Financial Position and Cash Flows

Total assets stood at 83,082 million yen as of the end of March 2026, up 385 million yen from the end of March 2025, while total net assets rose 3,260 million yen to 63,280 million yen and total liabilities fell 2,875 million yen to 19,802 million yen. Cash flows from operating activities were 1,706 million yen (4,720 million yen in FY2024), investing activities provided 363 million yen (an outflow of 3,299 million yen in FY2024) and financing activities used 3,144 million yen. Cash and cash equivalents at the end of the period were 11,918 million yen. Capital expenditures were 2,863 million yen and depreciation was 1,749 million yen in FY2025, with an FY2026 annual plan of 3,000 million yen and 2,100 million yen respectively.

FY2026 Forecast

For FY2026, Hisaka Works forecasts orders received of 47,000 million yen, an increase of 4,408 million yen, but net sales of 44,000 million yen, down 890 million yen or 2.0%. Operating profit is forecast at 3,300 million yen (down 3 million yen, ▲0.1%) with an operating profit margin of 7.5%, ordinary profit at 3,600 million yen (down 20 million yen, ▲0.6%) and profit attributable to owners of parent at 2,410 million yen, down 1,039 million yen or 30.1%, for a profit margin of 5.5% against 7.7% in FY2025.

Item (Millions of Yen)	FY2025 Results (Full year)	FY2026 Forecasts (Full year)	Change
Orders received	42,591	47,000	4,408
Net sales	44,890	44,000	▲ 890
Operating Profit	3,303	3,300	▲ 3
Operating Profit Margin	7.4%	7.5%	0.1 pt
Ordinary profit	3,620	3,600	▲ 20
Ordinary profit Margin	8.1%	8.2%	0.1 pt
Profit attributable to owners of parent	3,449	2,410	▲ 1,039
Profit Margin	7.7%	5.5%	▲ 2.2 pt

By segment, the FY2026 plan assumes a recovery in the Heat Exchanger Segment — orders received of 20,400 million yen (up 18.6%) and segment operating profit of 1,830 million yen (up 85.2%) — against a pull-back in Process Engineering, where net sales are planned at 20,400 million yen (▲9.0%) and operating profit at 1,210 million yen (▲43.2%). The Valve Segment is planned at 5,470 million yen of net sales and 450 million yen of operating profit.

Segment (Millions of Yen)	Net Sales FY2025 Results	Net Sales FY2026 Forecasts	Operating profit FY2025 Results	Operating profit FY2026 Forecasts
Heat Exchanger Segment	17,229	18,100	988	1,830
Process Engineering Segment	22,405	20,400	2,129	1,210
Valve Segment	5,183	5,470	366	450
Other	72	30	52	10
Subtotal	―	―	3,537	3,500
Adjustment amount	―	―	▲ 234	▲ 200
Total	44,890	44,000	3,303	3,300

Shareholder Returns

The company’s basic policy on profit distribution is to return appropriate profits to shareholders while strengthening its financial position and management foundation, striving for continuous and stable dividends with a consolidated Dividend on Equity (DOE) of 2.0% or more. The FY2025 annual dividend was 55 yen per share (interim 27 yen, year-end 28 yen), against 45 yen in FY2024, with a dividend payout ratio of 42.2% and DOE of 2.4%. For FY2026 the company forecasts an annual dividend of 55 yen per share (interim 27 yen, year-end 28 yen), a payout ratio of 60.0% and DOE of 2.3%. Over the previous medium-term plan “G-23” (FY2023–FY2025), total shareholder returns were 6.0 billion yen — dividends of 3.7 billion yen and treasury share purchases of 2.3 billion yen — against an initial plan of 3.5 billion yen. Under “Challenge2028” (FY2026–FY2028) the company plans total shareholder returns of 8.0 to 11.0 billion yen.

Dividends per share (yen)	FY2024 (2025/3)	FY2025 (2026/3)	FY2026 (2027/3, forecasts)
Interim dividends	21	27	27
Year-end dividends	24	28	(28)
Annual total	45	55	(55)
Dividend payout ratio	33.1	42.2	(60.0)
DOE	2.1	2.4	(2.3)

New Medium-Term Management Plan “Challenge2028”

Hisaka Works formulated the new medium-term business plan “Challenge2028” to implement its newly established management vision “Challenge for Climate Change”. The plan targets operating profit of 5,000 million yen or more in FY2028 and ROE of 8% or more in the fiscal year ending March 2031, aiming to achieve PBR of 1x or more at an early stage. The company states that ROE for FY2025 was 5.6%, below its recognised cost of equity of 6-8%, and that PBR was 0.64x as of the end of March 2026 — an improving trend but still below 1x. Cash allocation over FY2026–FY2028 assumes operating cash flow of 13.5 billion yen or more and a reduction of strategic shareholdings of 4.0 billion yen or more, funding growth investment of 9.5 billion yen to 12.5 billion yen. The ratio of strategic shareholdings to net assets reached 18.9% at the end of March 2026, and the company aims for 15% or less by the end of March 2031.

Item (Millions of Yen)	FY2022 Actual (G-20 final year)	FY2025 Actual (A) (G-23 final year)	FY2028 Plan (B) (Challenge2028 final year)	Rate of Change (B-A / A)
Orders received	34,621	42,591	54,000	26.8%
Net sales	34,074	44,890	55,000	22.5%
Operating profit	1,912	3,303	5,000	51.3%
Profit Margin	5.6%	7.4%	9.1%	+ 1.7pt
Ordinary profit	2,392	3,620	5,300	46.4%
Profit attributable to owners of parent	2,040	3,449	4,200	21.7%
ROA	3.5%	4.4%	6.8%	+ 2.4pt
ROE	3.7%	5.6%	7.0%	+ 1.4pt
ROIC	2.4%	3.4%	5.5%	+ 2.1pt

By segment, the FY2028 plan calls for net sales of 23,470 million yen and operating profit of 2,550 million yen in the Heat Exchanger Segment, net sales of 25,000 million yen and operating profit of 1,940 million yen in the Process Engineering Segment, and net sales of 6,500 million yen and operating profit of 700 million yen in the Valve Segment.

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.