Takara Standard (7981): FY2025 Results Summary — Record Sales and Profit, Dividend Raised to ¥116

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

Takara Standard refers to the fiscal year ended March 31, 2026 as “FYE Mar. 2026” in its own materials; this is the period covered here and is referred to as FY2025 per site convention. Net sales and every profit line reached record highs for the year, with operating profit, ordinary profit, and profit attributable to owners of parent all increasing by more than 22% year on year.

Consolidated Results (Full-Year Actual)

Net sales rose 3.9% year on year to ¥252.7 billion, and every profit line reached a record high, with operating profit up 22.1% to ¥19.0 billion, ordinary profit up 22.9% to ¥19.6 billion, and profit attributable to owners of parent up 35.9% to ¥15.0 billion. Sales growth was driven by continued steady performance in the new construction market as well as strong performance in remodeling in the second half. Operating profit increased significantly due to higher sales, price increases, and the promotion of streamlining and cost reductions. Profit attributable to owners of parent recorded a high growth rate due to progress in the sale of non-operating assets such as cross-shareholdings. ROE improved to 7.7% from 5.8% a year earlier. (Figures in billion yen unless otherwise noted.)

Item	FYE Mar. 2025	FYE Mar. 2026	Change	% Change
Net sales	243.3	252.7	+9.3	+3.9%
Gross profit	84.5	90.1	+5.6	+6.7%
SG&A	68.8	71.0	+2.1	+3.2%
Operating profit	15.6	19.0	+3.4	+22.1%
Ordinary profit	16.0	19.6	+3.6	+22.9%
Profit attributable to owners of parent	11.0	15.0	+3.9	+35.9%
ROE	5.8%	7.7%	+1.9P	–

Sales by Market

By market, new construction detached houses grew 4.0% to ¥77.8 billion on higher unit prices and market share expansion, while new construction multi-family housing grew 5.6% to ¥89.2 billion on steady demand in the Tokyo metropolitan and other major urban areas and higher unit prices driven by the premiumization of properties. Remodeling sales increased 2.4% to ¥74.5 billion, supported by specification enhancements for volume-zone products and continued product proposals tailored to customer needs.

Market	FYE Mar. 2025	FYE Mar. 2026	Change	% Change
New construction – Detached houses	74.8	77.8	+3.0	+4.0%
New construction – Multi-family housing	84.5	89.2	+4.7	+5.6%
New construction – Total	159.4	167.1	+7.7	+4.9%
Remodeling	72.7	74.5	+1.7	+2.4%
Total incl. others	243.3	252.7	+9.3	+3.9%

Sales by Product Category

Sales increased across all product categories, supported by strong performance in the new construction market. Kitchen sales, the largest category at 61.2% of total, rose 3.8% to ¥154.7 billion; bathroom sales rose 5.3% to ¥58.7 billion; and washstand sales rose 6.5% to ¥30.5 billion.

Product	FYE Mar. 2025	FYE Mar. 2026	Change	% Change
Kitchen	149.0	154.7	+5.6	+3.8%
Bathroom	55.7	58.7	+2.9	+5.3%
Washstand	28.6	30.5	+1.8	+6.5%
Total incl. others	243.3	252.7	+9.3	+3.9%

FYE Mar. 2027 Forecast

For the fiscal year ending March 31, 2027, Takara Standard forecasts net sales of ¥260.0 billion (+2.9% YoY), operating profit of ¥20.8 billion (+9.0% YoY, an operating profit ratio of 8.0%), ordinary profit of ¥21.5 billion (+9.3%), and profit attributable to owners of parent of ¥15.4 billion (+2.2%), targeting ROE of 8.0%. The forecast exceeds the final-year targets of the Medium-term Management Plan 2026 (net sales ¥250.0 billion, operating profit ¥20.0 billion, ROE 8.0%) announced on May 9, 2024, with the ROE target revised on May 8, 2025. Growth is expected across new construction detached houses, new construction multi-family housing, and remodeling, driven by market share expansion, unit price increases, and upgrade proposals. The company stated that, given the high uncertainty involved, the potential impact of material shortages and price hikes associated with the Middle East situation has not been factored into the forecast, and it will promptly disclose any significant impact on business performance.

Item	FYE Mar. 2026 (Results)	FYE Mar. 2027 (Forecast)	Change	% Change
Net sales	252.7	260.0	+7.2	+2.9%
Operating profit	19.0	20.8	+1.7	+9.0%
Operating profit ratio	7.6%	8.0%	+0.4P	–
Ordinary profit	19.6	21.5	+1.8	+9.3%
Profit attributable to owners of parent	15.0	15.4	+0.3	+2.2%
ROE	7.7%	8.0%	+0.3P	–

Shareholder Returns

The annual dividend for FYE Mar. 2026 was increased by 38 yen year on year and by 16 yen from the initial forecast to 116 yen (interim 50 yen, year-end 66 yen), for a payout ratio of 50%. For FYE Mar. 2027, the annual dividend is planned to increase by a further 8 yen to 124 yen (interim 62 yen, year-end 62 yen), maintaining the 50% payout ratio policy. Takara Standard has not reduced its dividend for 34 consecutive terms to date, excluding commemorative dividends. Under its new shareholder return policy, the company plans to repurchase approximately ¥22.0 billion of treasury shares from FYE Mar. 2026 to FYE Mar. 2027, of which ¥10.4 billion was already repurchased in FYE Mar. 2026, with up to ¥12.0 billion planned for FYE Mar. 2027, targeting a total shareholder return ratio of around 130%. Over the three years of the current medium-term plan, the company plans approximately ¥20.0 billion in dividends and approximately ¥24.0 billion in share repurchases.

Medium-Term Plan / Topics

In light of strong recent performance, Takara Standard revised upward the final-year targets of its Medium-term Management Plan 2026 announced on May 9, 2024 (ROE target revised on May 8, 2025), and now expects to achieve the plan’s 8.0% ROE target in FYE Mar. 2027. For the period following the plan’s completion, capital allocation decisions will be based on the financial situation and investment projects at the time, with a strong focus on the KPI of ROE 10% for FYE Mar. 2031 and on improving the stock price. Planned capital investment for FYE Mar. 2027 is ¥25.6 billion, including ¥14.3 billion for the construction of a new building at the Fukuoka Factory to expand production capacity for enamel bathroom panels.

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.