Tachikawa Corporation (7989): FY2025 Results Summary — Record Net Income on Fabric Product Renewal and Price Revisions

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

Note: Tachikawa Corporation does not publish an English-language 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. Tachikawa Corporation announced its consolidated results for the fiscal year ended December 31, 2025 on February 10, 2026. Driven by a major renewal of core fabric window-covering products and price revisions in the Interior & Exterior Products Business, net sales rose to ¥42,623 million, 102.9% of the prior-year figure. Selling, general and administrative expenses rose to 102.9% of the prior-year level on higher sales-promotion and personnel costs, but gains on the sale of policy-held shares and fixed assets, together with a lower effective tax burden, lifted operating profit, ordinary profit and net income above the prior year. Profit attributable to owners of parent reached ¥3,239 million, exceeding the initial forecast and marking a record high.

Consolidated Results (FY Ended December 2025 Actual)

Net sales were ¥42,623 million (102.9% of the prior-year figure), operating profit was ¥4,411 million (101.2%), ordinary profit was ¥4,629 million (105.8%), and profit attributable to owners of parent was ¥3,239 million (115.6%). Profit attributable to owners of parent, initially forecast at ¥2.9 billion at the start of the year, was revised upward to ¥3.2 billion during the year; the actual result was 101.2% of that revised forecast.

Item	FY2025 (Year Ended Dec 2025)	FY2024 (Year Ended Dec 2024)	YoY (Index)
Net sales	¥42,623 million	¥41,407 million	102.9%
Gross profit	¥17,529 million	¥17,113 million	102.4%
SG&A expenses	¥13,117 million	¥12,752 million	102.9%
Operating profit	¥4,411 million	¥4,361 million	101.2%
Ordinary profit	¥4,629 million	¥4,376 million	105.8%
Profit attributable to owners of parent	¥3,239 million	¥2,802 million	115.6%

Segment Results

In the Interior & Exterior Products Business, sales and profit both increased, supported by a major renewal of the fabric-pattern lineup for core fabric products and higher sales of light-control fabric products and the electric-operation “Home Tacos” product line. In the Parking Systems Business, profit increased on more installation work for new “Puzzle Tower” multi-level parking systems, steady progress in renovation projects, and improved profit margins from a focus on profitability. In the Speed Reducers Business, sales increased on higher sales of general-purpose speed reducers and products for automated guided vehicles (AGVs), but profit declined due to rising material costs and higher outsourcing costs.

Segment	Metric	FY2025	YoY (Index)
Interior & Exterior Products Business	Net sales	¥35,944 million	103.2%
Interior & Exterior Products Business	Operating profit	¥3,727 million	100.7%
Parking Systems Business	Net sales	¥3,076 million	100.4%
Parking Systems Business	Operating profit	¥476 million	112.0%
Speed Reducers Business	Net sales	¥3,602 million	102.7%
Speed Reducers Business	Operating profit	¥206 million	88.3%

FY2026 Forecast

For the fiscal year ending December 31, 2026, Tachikawa Corporation plans consolidated net sales of ¥43,500 million (102.1% of the FY2025 figure), operating profit of ¥4,500 million (102.0%), ordinary profit of ¥4,700 million (101.5%), and profit attributable to owners of parent of ¥3,280 million (101.2%). For the first half, the company expects net sales of ¥21,500 million (103.5% of the year-earlier first half), operating profit of ¥2,300 million (109.8%), ordinary profit of ¥2,400 million (109.7%), and profit attributable to owners of parent of ¥1,580 million (91.1%).

Item	FY2026 (Full-Year Forecast)	FY2025 (Actual)	YoY (Index)
Net sales	¥43,500 million	¥42,623 million	102.1%
Operating profit	¥4,500 million	¥4,411 million	102.0%
Ordinary profit	¥4,700 million	¥4,629 million	101.5%
Profit attributable to owners of parent	¥3,280 million	¥3,239 million	101.2%

Shareholder Returns

During the Medium-Term Management Plan 2023-2025, the company’s policy was to achieve a total return ratio of 50% at an early stage and to continue progressive dividends. The annual dividend per share for 2025 was ¥70 (payout ratio 43.4%, total return ratio 43.4%), exceeding the plan’s target of ¥46. Under the new Medium-Term Management Plan 2026-2028, the company will continue progressive dividends while introducing a DOE (dividend on equity ratio) of 4.0% as a lower-bound indicator, and commits to an annual dividend per share of ¥120 or more. Share buybacks will continue to be carried out flexibly according to the business environment.

Item	2023	2024	2025
Annual dividend per share (actual)	¥36	¥46	¥70
Payout ratio	25.1%	31.0%	43.4%
Total return ratio	55.3%	36.8%	43.4%

Medium-Term Management Plan 2026-2028

On February 10, 2026, Tachikawa Corporation announced its new Medium-Term Management Plan 2026-2028, “Creating a Comfortable Life.” For the final year of the plan, the fiscal year ending December 31, 2028, the company targets consolidated net sales of ¥45,850 million (107.6% of the FY2025 figure), operating profit of ¥4,850 million (109.9%), ordinary profit of ¥5,000 million (108.0%), and profit attributable to owners of parent of ¥3,500 million (108.0%). The plan targets a price-to-book ratio (PBR) of 1.0x or above during the plan period, and return on equity (ROE) of 7.0% or above for the fiscal year ending December 31, 2028.

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.