KOSAIDO Holdings (7868): FY2025 Results Summary — Profit Rises for a Sixth Straight Year Despite Lower Revenue

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KOSAIDO Holdings reported lower net sales and operating profit for the fiscal year ended March 31, 2026 (the company’s FY03/26), mainly reflecting a decrease in the number of deaths in Tokyo and the absence of revenue from a large-scale real estate project booked in the Asset Consulting segment in the prior year. Despite the top-line decline, profit attributable to owners of parent increased year on year, marking the sixth consecutive year of growth in bottom-line profit. Note: the company labels this completed fiscal year “FY03/26”; this article follows japan-equity.com’s site convention of referring to it as FY2025.

Consolidated Results (FY2025 Full-Year Actual)

Net sales declined 5.4% year on year to ¥36,228 million, operating profit fell 18.8% to ¥6,740 million, and ordinary profit fell 18.2% to ¥6,571 million. Profit attributable to owners of parent rose 6.2% to ¥4,738 million. Results came in below the company’s initial full-year forecast (issued May 15, 2025) on net sales, operating profit and ordinary profit, while profit attributable to owners of parent exceeded the prior year’s result.

Item	FY2025 (FY03/26) Full-Year Results	FY2024 (FY03/25) Full-Year Results	YoY Change (%)	FY2025 Initial Forecast (May 15, 2025)
Net sales	36,228	38,302	(5.4)	39,750
Operating profit	6,740	8,302	(18.8)	8,350
Ordinary profit	6,571	8,032	(18.2)	8,050
Profit attributable to owners of parent	4,738	4,462	6.2	5,380

Segment Results

The Asset Consulting segment recorded a substantial decline in revenue and profit due to the continued decrease following the completion of the large-scale project in the previous fiscal year. The two Funeral Services segments recorded an overall decline in profit due to the decrease in cremation volumes at Tokyo Hakuzen and the resulting decline in visitor numbers, although the number of funeral services handled by subsidiary funeral services companies increased year on year. The Information segment achieved higher revenue and profit.

Segment	Net Sales FY2025	Net Sales FY2024	Net Sales YoY (%)	Operating Profit FY2025	Operating Profit FY2024	Operating Profit YoY (%)
Public Funeral Services	5,428	5,986	(9.3)	1,191	1,249	(4.7)
Profit-Generating Funeral Services	10,490	10,442	0.5	3,628	4,288	(15.4)
Information	14,972	14,793	1.2	655	394	66.0
HR	5,048	5,282	(4.4)	(71)	(158)	–
Asset Consulting	288	1,796	(82.1)	(56)	1,447	–
Adjustments, etc.	0	–	–	1,393	1,080	29.0
Total	36,228	38,302	(5.4)	6,740	8,302	(18.8)

FY2026 Forecast

For the fiscal year ending March 31, 2027 (the company’s FY03/27), KOSAIDO Holdings forecasts net sales of ¥39,400 million (up 8.8% year on year), operating profit of ¥7,100 million (up 5.3%), ordinary profit of ¥6,900 million (up 5.0%), and profit attributable to owners of parent of ¥4,620 million (down 2.5%). The company states it is aiming to return to a growth trajectory in both net sales and operating profit, targeting upside through the promotion of strategies in each business segment. The forecast decline in profit attributable to owners of parent is attributable to the reactionary decline from the absence of a tax burden reduction and extraordinary income recorded in the previous fiscal year; on an operating profit basis, steady growth is planned. By segment, profit is planned to increase in each segment excluding the Public Funeral Services segment.

Item	FY2026 (FY03/27) Forecast	FY2025 (Actual)	Change (%)
Net sales	39,400	36,228	8.8
Operating profit	7,100	6,740	5.3
Ordinary profit	6,900	6,571	5.0
Profit attributable to owners of parent	4,620	4,738	(2.5)

Shareholder Returns

The FY2025 (FY03/26) dividend per share was finalized at ¥13.34 (¥6.67 interim, ¥6.67 year-end), as initially forecast, up ¥0.60 from the ¥12.74 paid in FY2024 (FY03/25). The consolidated payout ratio was 38.9%. The company states it will prioritize stable dividends regardless of changes in the number of shares outstanding and aims to maintain and improve dividends per share. For FY2026 (FY03/27), the company forecasts a dividend of ¥13.34 per share (¥6.67 interim, ¥6.67 year-end), unchanged from FY2025.

Fiscal Year	Interim Dividend	Year-End Dividend	Total Dividend
FY2024 (FY03/25) Results	¥6.37	¥6.37	¥12.74
FY2025 (FY03/26) Results	¥6.67	¥6.67	¥13.34
FY2026 (FY03/27) Forecast	¥6.67	¥6.67	¥13.34

Topics

On February 27, 2026, the company announced the establishment of an intermediate holding company for its funeral services business, Kosaido Life Partners Co., Ltd., effective April 1, 2026, via a simplified incorporation-type company split. The new intermediate holding company will oversee three subsidiaries: Kosaido Lifewell Co., Ltd., Yokohama Seien Co., Ltd., and Ceremo Life Co., Ltd. The stated aims are centralizing management functions, strengthening governance, and standardizing business processes, positioning the funeral services business as one of the Group’s key growth areas over the medium to long term. Separately, the company is discontinuing its conventional rolling-style medium-term target-setting approach and will announce a new Medium-Term Management Plan once finalized, built around a long-term vision extending more than five years ahead and deeper dialogue with the capital market.

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.