MIDAC HOLDINGS (6564): FY2025 Results Summary — Landfill Demand Lifts Sales, Dividend Raised to 18.0 Yen

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

MIDAC HOLDINGS CO., LTD. (Securities Code: 6564), a Shizuoka-based group engaged in the collection, transportation and disposal of industrial and general waste, reported net sales of 11,844 million yen (year on year +8.6%), operating income of 4,723 million yen (year on year +4.2%), and net income of 2,888 million yen (year on year +0.9%) for the fiscal year ended March 31, 2026. Note: this site classifies the most recent completed fiscal year as FY2025; the company’s material is titled “Fiscal Year Ended March 31, 2026 Financial Results Information,” and the labels used in the material are kept as-is below.

Consolidated Results (Full-Year Actual)

The operating margin was 39.9%. According to the company, the amount of contracted waste at landfill sites expanded, and each business progressed as expected. There were cost burdens at Taihei Kosan that were not factored into the forecast, but net sales and all profit categories landed largely in line with expectations: against the company’s full-year forecast, net sales came in at 102.0%, operating income at 98.6%, ordinary profit at 98.9%, and net income at 98.5%. On the balance sheet, property, plant and equipment increased due to investment in landfill sites and a new water treatment facility, and the equity ratio decreased by 8.5 percentage points to 45.6%.

Item (In million yen)	FY ended March 31, 2026	FY ended March 31, 2025	YoY change
Net sales	11,844	10,905	+8.6%
Operating income	4,723	4,534	+4.2%
Operating margin	39.9%	41.6%	-1.7pt
Ordinary profit	4,649	4,450	+4.5%
Net income*	2,888	2,862	+0.9%

*Net income attributable to the parent company’s shareholders.

Segment Results

In the waste treatment business, the amount of contracted waste at landfill sites increased significantly due to strong disposal demand. The collection and transportation business remained largely on par with the previous year due to price pass-throughs to customers and acceptance of spot contracts. In the intermediary management business, intermediary to partner companies remained strong due to the acquisition of large-scale projects.

Segment	Metric (In million yen)*	FY ended March 31, 2026	FY ended March 31, 2025
Waste treatment	Net sales	9,975	8,902
Collection and transportation	Net sales	2,040	2,023
Intermediary management	Net sales	184	158
Waste treatment	Profit	5,321	4,951
Collection and transportation	Profit	561	529
Intermediary management	Profit	111	91

*Figures include internal transactions.

Forecast for the Fiscal Year Ending March 31, 2027

Based on its integrated waste treatment system, the company aims to increase the amount of contracted waste, primarily through Okuyama-No-Mori Clean Center and Taihei Kosan. At intermediate treatment facilities, it will aim to improve the operating rate by continuing to promote sales activities aimed at expanding sales channels, primarily through Miyakoda Techno Plant. Capital investment was 10,582 million yen in the fiscal year ended March 31, 2026 (YoY +204.1%), and 7,857 million yen is planned for the fiscal year ending March 31, 2027, with investment planned in new waste treatment facilities and existing landfill sites.

Item (In million yen)	FY ending March 31, 2027 (Forecast)	FY ended March 31, 2026 (Results)	Year-on-year
Net sales	13,494	11,844	13.9%
Operating income	5,489	4,723	16.2%
Ordinary profit	5,268	4,649	13.3%
Net income*	3,340	2,888	15.6%

*Net income attributable to the parent company’s shareholders.

Shareholder Returns

The company’s policy is to pay stable dividends on an ongoing basis while strengthening its management base and financial position, and internal reserves will be allocated to investments for further business expansion. Based on a comprehensive consideration of changes in results and the company’s financial position, the dividend for the fiscal year ending March 2026 will be increased to 18.0 yen, and the dividend per share for the fiscal year ending March 2027 is expected to be further increased to 20.0 yen.

Item	FY ended March 31, 2025	FY ended March 31, 2026	FY ending March 31, 2027 (Forecast)
Dividend	14.0 yen	18.0 yen	20.0 yen
Dividend payout ratio	13.5%	17.2%	16.6%

Medium-Term Plan / Topics

The company states that it is progressing smoothly according to plan toward the final year of the first Medium-term Plan (fiscal year ending March 31, 2027), with the increase in contracted waste volume at Okuyama-No-Mori Clean Center driving organic growth. In the plan’s trends in organic growth, the final fiscal year plan (FY ending March 31, 2027) calls for net sales of 10,000 million yen and ordinary profit of 5,000 million yen. Under the MIDAC Group Ten Year Vision “Challenge 80th,” the company has set challenge targets (including M&A) for the fiscal year ending March 2032 of net sales of 40 billion yen and ordinary profit of 12 billion yen.

Topics: The company acquired all shares of ENOKEN KOGYO Co., Ltd. on April 3, 2026. ENOKEN KOGYO operates a stable landfill site in Makinohara City, Shizuoka, and the company states that increased market share is achievable in stable landfill operations within Shizuoka. A new water treatment facility, Miyakoda Techno Plant, has approximately five times the treatment capacity of existing facilities, and operation is scheduled to start from June 2026 due to the impact of additional waterproofing work on the wastewater treatment facility. In its landfill site development plan, the company positions final treatment as a core business and is planning to acquire 3 controlled landfill site licenses, including 2 in eastern Japan: a landfill site in Nasushiobara City, Tochigi (landfill capacity 2.3 million m3, landfill period approx. 20 years), a landfill site in Koriyama City, Fukushima (landfill capacity 1.61 million m3, landfill period approx. 17 years), and a landfill site in Misato Town, Ochi District, Shimane (landfill capacity 4 million m3, landfill period approx. 20 years).

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.