Mars Group Holdings (6419): FY2025 Results Summary — Net Sales of ¥32,281 Million, Operating Profit Down 28.7%

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

Note: Mars Group Holdings does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. The source document labels the period as the fiscal year ended March 31, 2026 (FY3/2026); on this site the most recently completed fiscal year is classified as FY2025.

This article is a summary based on the “Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 [Japanese GAAP] (Consolidated)” announced by Mars Group Holdings Corporation (6419) on May 14, 2026. Consolidated results for FY3/2026 were net sales of ¥32,281 million (down 23.6% year on year), operating profit of ¥8,795 million (down 28.7%), ordinary profit of ¥9,693 million (down 25.9%), and profit attributable to owners of parent of ¥6,640 million (down 23.8%) — a decline in both sales and profit. The factor was that, in the mainstay Amusement-Related Business, capital-investment demand from the special demand associated with responding to the new banknotes seen in the previous fiscal year ran its course. For FY3/2027 the company expects higher sales and profit.

Consolidated Results (FY3/2026 Actual)

According to the overview of operating results in the financial results report, during the fiscal year under review the domestic economy followed a moderate recovery trend centered on domestic demand, with personal consumption picking up against a backdrop of improving employment and income conditions and inbound demand remaining firm, while the international situation remained unstable due to the prolonged situation in Ukraine, developments in U.S. trade policy, and surging resource and energy prices against the backdrop of the situation in the Middle East. Under these circumstances, the group worked to pursue new added value through its Amusement-Related, Smart Solution-Related, and Hotel & Restaurant-Related businesses, promoted DX and developed human resources under a banner of well-being management, and obtained the “DX Certification” established by the Ministry of Economy, Trade and Industry. As a result, results for the fiscal year were net sales of ¥32,281 million (down 23.6% year on year), operating profit of ¥8,795 million (down 28.7%), ordinary profit of ¥9,693 million (down 25.9%), and profit attributable to owners of parent of ¥6,640 million (down 23.8%). Earnings per share was ¥359.92, return on equity was 8.1%, and the operating profit margin on net sales was 27.2%. Comprehensive income was ¥10,222 million (up 14.1%).

Item	FY3/2026	FY3/2025	Change
Net sales	¥32,281 million	¥42,250 million	△23.6%
Operating profit	¥8,795 million	¥12,331 million	△28.7%
Ordinary profit	¥9,693 million	¥13,086 million	△25.9%
Profit attributable to owners of parent	¥6,640 million	¥8,716 million	△23.8%
Comprehensive income	¥10,222 million	¥8,957 million	14.1%
Earnings per share	¥359.92	¥475.74	–
Return on equity	8.1%	11.7%	–
Ordinary profit on total assets	10.7%	15.3%	–
Operating profit margin on net sales	27.2%	29.2%	–

Segment Results

The group has three reportable segments — the Amusement-Related Business, the Smart Solution-Related Business, and the Hotel & Restaurant-Related Business — and segment profit is on an operating-profit basis. In the Amusement-Related Business, the operating environment was severe, with the number of pachinko halls at 6,464 (as of the end of December 2025, a decrease of 242 halls compared with the previous year) and the total number of gaming machines installed at 3,234,357 units (a decrease of 91,533 units), and the company focused on proposals and sales of total systems centered on the “EVOALL series.” Sales of prepaid-card systems (including “Personal” and units dedicated to smart gaming machines) in the fiscal year covered 12 halls, and the cumulative number of halls with systems installed and in operation was 1,376 (market share 23.9%). Net sales of this segment were ¥23,503 million (down 29.9% year on year) and segment profit was ¥8,494 million (down 28.9%) — a decline in sales and profit as capital-investment demand from the special demand for the new banknote response seen in the previous fiscal year ran its course. In the Smart Solution-Related Business, Mars Tohken Solution deployed the AI image-recognition system “VisAI series,” the health-checkup platform “macmo,” and the X-ray business, and Mars Wintech promoted unmanned-sales solutions such as the “Infinity Station” series; as a result, net sales were ¥6,022 million (down 1.6% year on year) and segment profit was ¥726 million (up 2.0%). In the Hotel & Restaurant-Related Business, contributions from “Mars Garden Hotel Hakata,” “Mars Garden Wood Gotemba” — which marked its 15th anniversary — and the restaurant business in the Ginza area brought net sales of ¥2,754 million (up 5.1% year on year) and segment profit of ¥87 million (up 16.4%).

Segment	Metric	FY3/2026	FY3/2025
Amusement-Related Business	Net sales to external customers	¥23,503,777 thousand	¥33,511,554 thousand
Amusement-Related Business	Segment profit	¥8,494,052 thousand	¥11,942,873 thousand
Smart Solution-Related Business	Net sales to external customers	¥6,022,688 thousand	¥6,118,427 thousand
Smart Solution-Related Business	Segment profit	¥726,988 thousand	¥712,784 thousand
Hotel & Restaurant-Related Business	Net sales to external customers	¥2,754,691 thousand	¥2,620,789 thousand
Hotel & Restaurant-Related Business	Segment profit	¥87,493 thousand	¥75,187 thousand
Adjustments	Segment profit	△513,427 thousand yen	△399,263 thousand yen
Amount recorded in consolidated financial statements	Net sales	¥32,281,157 thousand	¥42,250,771 thousand
Amount recorded in consolidated financial statements	Operating profit	¥8,795,106 thousand	¥12,331,581 thousand

Financial Position and Cash Flows

Total assets at the end of the fiscal year were ¥94,262 million (¥87,000 million at the end of the previous fiscal year), an increase of ¥7,261 million. Current assets were ¥52,630 million, an increase of ¥625 million, the main component of which was a ¥2,589 million increase in cash and deposits (from ¥36,373 million to ¥38,963 million). Non-current assets were ¥41,632 million, an increase of ¥6,635 million, with investment securities increasing by ¥4,737 million (from ¥16,113 million to ¥20,850 million) and buildings and structures (net) increasing by ¥1,007 million (from ¥5,791 million to ¥6,799 million). Net assets were ¥85,733 million (¥78,230 million at the end of the previous fiscal year), an increase of ¥7,503 million, with retained earnings increasing by ¥3,873 million and valuation difference on available-for-sale securities increasing by ¥3,134 million. The equity ratio was 91.0% (89.9% at the end of the previous fiscal year), and net assets per share were ¥4,647.27. As for cash flows, net cash provided by operating activities was ¥7,814 million (versus ¥10,651 million provided in the previous fiscal year), mainly due to profit before income taxes of ¥9,855 million. Net cash used in investing activities was ¥2,480 million (versus ¥558 million used in the previous fiscal year), mainly due to purchases of property, plant and equipment of ¥2,239 million and purchases of investment securities of ¥489 million. Net cash used in financing activities was ¥2,765 million (versus ¥3,069 million used in the previous fiscal year), mainly due to dividends paid of ¥2,765 million. Cash and cash equivalents at the end of the period stood at ¥38,963 million. As no interest-bearing debt was outstanding at the end of the period, the ratio of cash flow to interest-bearing debt and the interest coverage ratio are not stated.

Full-Year Forecast for FY3/2027

Regarding the outlook, the company expects that, although stabilization of personal consumption can be anticipated against a backdrop of improving employment and income conditions, the environment will remain uncertain due to developments in U.S. trade policy, resource and energy prices staying high under the influence of the situations in Ukraine and the Middle East, and rising prices. In the Amusement-Related Business, the company will provide systems centered on the “EVOALL series” that support more efficient hall operations and the maximization of sales and profit; in the Smart Solution-Related Business, it will promote the development and sale of AI image-recognition systems, IoT-enabled refrigerated-merchandise vending machines, unmanned check-in terminals, and other offerings; and in the Hotel & Restaurant-Related Business, it will work to optimize customer attraction and pricing strategies that leverage the location characteristics of each facility. In addition, the company sets out expanding its business domains through the use of M&A and the creation of new businesses, and achieving sustainable growth and higher corporate value through the promotion of DX. Based on the above, the consolidated forecast for FY3/2027 is net sales of ¥33,700 million (up 4.4% year on year), operating profit of ¥8,950 million (up 1.8%), ordinary profit of ¥9,700 million (up 0.1%), and profit attributable to owners of parent of ¥6,700 million (up 0.9%). The forecast for the second quarter (cumulative) is net sales of ¥15,600 million (down 6.9% from the same quarter of the previous year), operating profit of ¥3,850 million (down 19.7%), ordinary profit of ¥4,200 million (down 21.8%), and profit attributable to owners of parent of ¥2,900 million (down 20.3%).

Item	FY3/2027 Forecast	FY3/2026 (Actual)	YoY
Net sales	¥33,700 million	¥32,281 million	4.4%
Operating profit	¥8,950 million	¥8,795 million	1.8%
Ordinary profit	¥9,700 million	¥9,693 million	0.1%
Profit attributable to owners of parent	¥6,700 million	¥6,640 million	0.9%
Earnings per share	¥363.18	¥359.92	–
Annual dividend per share	¥150.00 (interim ¥75.00, year-end ¥75.00)	¥150.00 (interim ¥75.00, year-end ¥75.00)	–
Payout ratio (consolidated)	41.3%	41.7%	–

Shareholder Returns

The company positions returning profits to shareholders as one of its most important policies. Its basic policy is to continue stable dividends and distribute profits appropriately, based on its management target of a 30% payout ratio, while strengthening its financial position in order to achieve stable and continuous corporate growth from a long-term perspective. In line with this policy, the dividend for FY3/2026 is planned to be a year-end dividend of ¥75 per share, which together with the interim dividend of ¥75 makes an annual dividend of ¥150 (payout ratio 41.7%). Total dividends are ¥2,767 million and the dividend on net assets ratio is 3.4%. In the previous fiscal year (FY3/2025), the annual dividend was ¥195, consisting of an interim dividend of ¥120 and a year-end dividend of ¥75 (total dividends of ¥3,596 million, payout ratio 41.0%, dividend on net assets ratio 4.7%), and the interim dividend included a ¥50 commemorative dividend for the 50th anniversary of the company’s founding. For the next fiscal year (FY3/2027), the company intends to pay stable and appropriate dividends, and plans an interim dividend of ¥75 per share, a year-end dividend of ¥75, and an annual dividend of ¥150 (payout ratio 41.3%). The financial results report contains no statement of a policy on the acquisition of treasury shares, and the acquisition of treasury shares in the consolidated statement of changes in equity for FY3/2026 is shown as “－”.

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.