GIKEN LTD. (6289): FY2025 Results Summary — Domestic Machinery Downturn Offsets Record Overseas Sales

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

GIKEN LTD., the developer of the SILENT PILER press-in piling machines and the Press-in Method, posted net sales of 26,337 million yen for FY2025 (September 2024 to August 2025), down 10.7% year on year, and operating profit of 2,566 million yen, down 22.8%, for an operating profit margin of 9.7%. Ordinary profit was 2,732 million yen (-23.7%) and profit attributable to owners of parent was 1,487 million yen (-39.0%). The company recorded a loss on litigation and provision of allowance for doubtful accounts, a total of JPY812 million, as extraordinary losses due to the settlement with a former overseas consolidated subsidiary. For FY2026 the company forecasts net sales of 27,800 million yen (+5.6%) and operating profit of 2,900 million yen (+13.0%).

Consolidated Results (Full-Year Actual)

The company describes the year as one of decreased net sales and operating profit for the whole company, driven by the downturn in the Construction Machinery Segment. In addition, profit largely decreased due to the recording of extraordinary losses resulting from the settlement with a former overseas consolidated subsidiary. Gross profit fell 6.8% to 10,129 million yen, while selling, general and administrative expenses edged up 0.3% to 7,563 million yen. Profit per share was JPY55.74 against JPY90.99 in FY2024.

Item (Millions of JPY)	FY2024	FY2025	YoY
Net sales	29,481	26,337	-10.7%
Gross profit	10,867	10,129	-6.8%
Selling, general and administrative expenses	7,543	7,563	+0.3%
Operating profit	3,324	2,566	-22.8%
(operating profit margin)	(11.3%)	(9.7%)	—
Ordinary profit	3,582	2,732	-23.7%
Extraordinary Income and Losses	-811	-853	—
Profit attributable to owners of parent	2,437	1,487	-39.0%
Profit per share	JPY90.99	JPY55.74	-38.7%

The fourth quarter (June–August) was the strongest quarter of the year. Net sales rose 21.3% year on year to 8,908 million yen, gross profit rose 32.5% to 3,319 million yen, operating profit rose 139.8% to 1,167 million yen (margin 13.1%), ordinary profit rose 187.4% to 1,293 million yen and profit attributable to owners of parent rose 372.7% to 1,036 million yen. This followed a third quarter in which operating profit was 75 million yen and the company posted a quarterly loss of 477 million yen after the extraordinary losses of 813 million yen.

Segment Results

In the Construction Machinery Segment, net sales in Japan decreased due to a downturn in sales of general machinery, reflecting rising construction costs, the resulting decline in construction volume, and slowdown in users’ capital investment resulting from a shortage of skilled workers. Overseas, product sales grew in the Netherlands, Germany, the United Kingdom and Italy in response to market expansion in collaboration with GTOSS members, achieving record-high net sales with year-on-year growth, in part due to a concentration of sales in large-scale specialized machinery. Segment operating profit decreased due to the decline in domestic sales. In the Press-in Work Segment, net sales increased in both domestic and overseas markets on progress in Noto Peninsula Earthquake reconstruction work, projects for disaster prevention/mitigation and strengthening of national resilience, and GRIN Base EC installation work, but operating profit decreased due to a lower gross profit margin resulting from a decline in high value-added, development-oriented projects.

Segment / Item (Millions of JPY)	FY2024	FY2025	YoY
Construction Machinery — Net sales	21,402	18,316	-14.4%
Construction Machinery — Domestic	17,266	13,022	-24.6%
Construction Machinery — Overseas	3,674	4,634	+26.1%
Construction Machinery — Internal sales	461	659	+42.8%
Construction Machinery — Operating profit	4,624	3,892	-15.8%
Construction Machinery — (operating profit margin)	(21.6%)	(21.3%)	—
Press-in Work — Net sales	8,683	8,842	+1.8%
Press-in Work — Domestic	8,220	8,301	+1.0%
Press-in Work — Overseas	320	379	+18.4%
Press-in Work — Internal sales	142	161	+13.2%
Press-in Work — Operating profit	1,161	1,090	-6.1%
Press-in Work — (operating profit margin)	(13.4%)	(12.3%)	—

Within the Construction Machinery Segment, net sales by category moved from 20,940 million yen in FY2024 to 17,656 million yen in FY2025: finished goods sales 13,460 to 10,217, maintenance and parts sales 6,347 to 6,013, rental sales 720 to 887, and other sales 412 to 538. By product category, shipment value of general machinery fell from 6,961 to 4,164 million yen and specialized machinery from 1,298 to 747 million yen, while large-scale specialized machinery rose from 3,395 to 3,653 million yen and other from 1,804 to 1,651 million yen.

Overseas Business

The overseas ratio of net sales was 19.0%, against 81.0% domestic. Overseas net sales by region in FY2025 were 1,870 million yen in Europe, 2,058 million yen in Asia, 1,085 million yen in North America and 0 in other regions; in FY2024 the corresponding figures were 898, 1,545, 777 and 774 million yen. The regional mix of overseas sales was Europe 37%, Asia 41% and North America 22%. The number of GTOSS members rose from 0 to 6 companies in Europe (Netherlands 2, Germany 2, U.K. 1, Italy 1), from 8 to 10 companies in Asia (Singapore 9, South Korea 1) and from 0 to 3 companies in North America (U.S.A. 3).

Highlights cited by the company include the successful start of the commercialization phase of press-in work on the canal quay wall renovation project in the Netherlands, a UNESCO World Heritage site; adoption of the construction method for levee construction in the Netherlands’ Delta Program; sale of the third GYRO PILER to a GTOSS member in Singapore and the fourth to a GTOSS member in South Korea; a collaboration agreement signed with an Indian precast concrete manufacturer; and the opening of a sales office in New Jersey, U.S.A., where a U.S. GTOSS member secured the first project in the United States adopting the Gyropress Method.

FY2026 Forecast

For FY2026 the company projects increases in net sales and operating profit for both segments. In Construction Machinery, demand in Japan is expected to be stimulated through the introduction of new models that address labor shortages and on-site needs, while overseas sales are expected to exceed the record-high levels of the previous fiscal year on market expansion in each country and region. In Press-in Work, steady orders are expected in Noto Peninsula Earthquake reconstruction work and national resilience projects, and demand for rentals with operators in Germany is forecast to expand. Overseas sales by region are forecast at 2,174 million yen in Europe (+16.3%), 2,506 million yen in Asia (+21.8%) and 1,118 million yen in North America (+3.1%).

Item (Millions of JPY)	FY2025 Full Year	FY2026 Full Year	Rate of Change (%)
Net sales	26,337	27,800	+5.6%
Operating profit	2,566	2,900	+13.0%
(operating profit margin)	(9.7%)	(10.4%)	—
Ordinary profit	2,732	3,050	+11.6%
Profit attributable to owners of parent	1,487	2,200	+47.9%
Profit per share	JPY55.74	JPY87.76	+57.4%
Net sales — Construction Machinery	18,316	19,295	+5.3%
Net sales — Press-in Work	8,842	9,390	+6.2%
Operating profit — Construction Machinery	3,892	4,126	+6.0%
Operating profit — Press-in Work	1,090	1,299	+19.1%

Capital investment was 1,988 million yen in FY2025 against 1,347 million yen in FY2024 and is forecast at 1,560 million yen in FY2026; the FY2025 breakdown was products for rental/demonstration 1,310, offices and plant facilities 185, and other 493. Depreciation was 1,584 million yen in FY2024, 1,368 million yen in FY2025 and is forecast at 1,377 million yen. Research and development expenses were 1,024 million yen in FY2025 (3.9% of net sales) versus 790 million yen in FY2024 (2.7%), with 1,000 million yen (3.6%) forecast for FY2026.

Shareholder Returns

The annual dividend per share for FY2025 was JPY54, up from JPY42 for FY2024, with total dividends of 1,435 million yen, a dividend payout ratio of 96.9% and DOE of 3.6%. Acquisition of own shares totaled 499 million yen in FY2025. For FY2026 the company forecasts an interim dividend of JPY27 and a year-end dividend of JPY27, for an annual dividend of JPY54, total dividends of 1,372 million yen, a payout ratio of 61.5% and DOE of 3.5%, alongside acquisition of own shares of 2,000 million yen. The dividend policy from FY2026 is described as aiming for stable dividends and agile share repurchases: while targeting a dividend payout ratio of approximately 40%, the company aims to maintain a DOE of 3.5% or higher.

Item	FY2023	FY2024	FY2025	FY2026 (Forecast)
Profit (Millions of JPY)	846	2,437	1,487	2,200
Profit per share (JPY)	30.82	90.99	55.74	87.76
Dividend per share (JPY)	40	42	54	54
Total dividends (Millions of JPY)	1,094	1,124	1,435	1,372
Acquisition of Own Shares (Millions of JPY)	575	924	499	2,000
DOE (%)	2.7	2.8	3.6	3.5
Dividend payout ratio (%)	129.8	46.2	96.9	61.5

Topics

In Japan, the Hard Ground Press-in Method (Flywheel-type Pile Auger) was certified as a recommended technology under NETIS of Japan’s Ministry of Land, Infrastructure, Transport and Tourism, and pressing-in of 900 mm wide hat-shaped steel sheet piles into hard ground was included in the FY2025 Civil Engineering Estimation Standards; the company began rental of SILENT PILER F301 in Okinawa Prefecture. Its construction methods continued to be adopted in areas affected by the Noto Peninsula Earthquake and the Oku Noto Torrential Rain. The company also started operation of a “Press-in Dojo (Workshop)” at its Kansai Factory in Tanba City, Hyogo Prefecture, to train engineers in and out of Japan, and released the “G-Lab” series of digital transformation apps — G-Lab Fleet for machine management, G-Lab Site for site management and G-Lab Finder for technology information search — integrated with its cloud-based data platform.

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.