RYODEN Corporation (8084): FY2025 Results Summary — Net Income Rises 12.2% on Gain from Cross-Shareholding Sales

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

Note: RYODEN Corporation’s financial results materials label the fiscal year ended March 31, 2026 as “FYE2026” and the following fiscal year as “FYE2027.” FYE2026 is the company’s most recently completed full fiscal year; the tables and segment data below retain the company’s own FYE2026/FYE2027 labels as presented in its financial results briefing.

RYODEN Corporation reported consolidated results for the fiscal year ended March 31, 2026 (FYE2026) with net sales of ¥212,772 million, down 1.4% year on year and about 1.0% below the company’s plan. Operating profit fell 4.3% to ¥5,244 million (about 4.7% below plan), and ordinary profit declined 4.0% to ¥5,767 million, though this was about 3.0% above plan. Net income attributable to owners of the parent increased 12.2% to ¥5,275 million, about 5.5% above plan, helped by an extraordinary gain recorded on the sale of cross-shareholdings. Profitability improved in the Cooling & Heating and Building Systems segment and X-Tech achieved full-year profitability, while the recovery of FA Systems and Electronics was delayed. Sales of domestic in-vehicle electronics and the solution business in Taiwan remained strong.

Consolidated Results (FYE2026 Actual)

The table below summarizes RYODEN’s consolidated financial results for FYE2026 compared with FYE2025, as reported in the company’s financial results briefing.

Item (Millions of yen)	FYE2026	FYE2025	Change	Rate of Change (%)
Net sales	212,772	215,790	(3,018)	(1.4)
Operating profit	5,244	5,483	(238)	(4.3)
Ordinary profit	5,767	6,010	(242)	(4.0)
Net income attributable to owners of parent	5,275	4,700	574	12.2

Total assets at the end of FYE2026 were ¥154,303 million, up ¥12,307 million (8.7%) from a year earlier. Total liabilities increased ¥6,988 million (13.2%) to ¥59,770 million, and net assets rose ¥5,319 million (6.0%) to ¥94,533 million; the equity ratio decreased 1.5 percentage points year on year to 61.2%. Comprehensive income was ¥7,833 million for FYE2026 (up 42.8% year on year), compared with ¥5,487 million (down 39.3%) in FYE2025. Cash and cash equivalents ended FYE2026 at ¥33,457 million, after ¥6,067 million provided by operating activities and ¥2,985 million and ¥3,003 million used in investing and financing activities, respectively, during the year.

Segment Results

By segment, net sales in Cooling & Heating and Building Systems increased 13.4% year on year to ¥36,779 million, as demand for air-conditioning systems for stores and facilities remained strong and the restructuring of cold chains supported building-systems demand. FA Systems net sales rose 3.8% to ¥50,023 million, as sales to distributors and panel manufacturers remained strong even though the recovery of demand among end users and other semiconductor-equipment customers was delayed. X-Tech net sales decreased 2.2% to ¥8,496 million; the segment maintained its top share in the plant-factory business, but the ICT field was affected by high costs of IT-related products and the Healthcare field remained sluggish. Electronics net sales fell 7.1% to ¥117,507 million, as demand for in-vehicle and industrial equipment stayed weak, particularly in China, although business related to AI servers for data centers in Japan and the solution business for Taiwanese products remained strong. Net sales by segment include internal transactions.

Segment	FYE2026 (Millions of yen)	FYE2025 (Millions of yen)	Change	Rate of Change (%)
FA Systems	50,023	48,190	1,832	3.8
Cooling & Heating and Building Systems	36,779	32,429	4,350	13.4
X-Tech	8,496	8,687	(190)	(2.2)
Electronics	117,507	126,536	(9,029)	(7.1)

FYE2027 Forecast

For FYE2027, RYODEN forecasts consolidated net sales of ¥237,000 million and operating profit of ¥6,000 million. The company expects M&A completed in the previous year to contribute to net sales and profit, the completion of inventory adjustments for customers in Japan and abroad, a recovery in demand for FA and electronics, and the monetization of large-scale X-Tech projects invested in during FYE2026. These gains are expected to be partly offset by continued early investments, including in human capital and development, and expenses related to technology strategies.

Segment	FYE2026 Results (Net Sales)	FYE2027 Forecast (Net Sales)	FYE2026 Results (Op. Profit)	FYE2027 Forecast (Op. Profit)
FA Systems	50,023	62,100	963	2,360
Cooling & Heating and Building Systems	36,779	40,500	2,418	2,520
X-Tech	8,496	10,000	122	360
Electronics	117,507	124,400	3,345	3,210
Total*1	212,772	237,000	5,244	6,000

*1 Total operating profit includes company-wide expenses, so it is lower than the sum of the four segments’ operating profit.

Shareholder Returns

RYODEN paid an annual dividend of ¥138 per share for FYE2026 (¥68 interim, ¥70 year-end), for a DOE (Dividend on Equity Ratio) of 3.50%. In May 2026, the company changed its shareholder-return policy: it had previously targeted a minimum consolidated total payout ratio of 50% or a DOE of 3.5% while maintaining stable dividends over the medium to long term; it now aims to implement progressive dividends and achieve a DOE of 4.5% or more during the period of its current Medium- to Long-Term Management Plan (through FYE2030). For FYE2027, the company forecasts an annual dividend of ¥150 per share (¥75 interim, ¥75 year-end), for a DOE of 3.80%.

Fiscal Year	Interim Dividend (Yen)	Year-End Dividend (Yen)	Annual Dividend (Yen)	DOE (%)
FYE2024	46	60	106	2.80
FYE2025	53	53	106	2.60
FYE2026	68	70	138	3.50
FYE2027 (Forecast)	75	75	150	3.80

Medium- to Long-Term Plan / Topics

RYODEN’s new Medium- to Long-Term Management Plan, “ONE RYODEN Growth 2029 | 2034,” targets a company-wide net sales CAGR of 3.8% and an operating profit CAGR of 16.2%, aiming for net sales of ¥270,000 million and an operating profit margin of 5% (operating profit of ¥13,500 million) in the final year, FYE2030. The plan calls for growth investment of ¥25.0 billion to ¥35.0 billion over five years, comprising business investment of approximately ¥25.0 billion and technological infrastructure investment of approximately ¥2.5 billion, and includes M&A such as the FYE2026 takeovers of the FA businesses of Hokkaido Mitsubishi Electric Sales and KITA KOUDENSHA. On capital efficiency, the company targets ROE of 10% or more and a PBR of 1.0 times or more; ROE was 5.7% for FYE2026, versus a cost of equity that the company estimates at 7.41% based on CAPM, and PBR stood at 0.75 times at fiscal year-end. Other announced initiatives include disclosure of an integrated report in September 2025, with an English-language version published in November 2025, the introduction of ROIC management indicators in each business division from April 2026, and the establishment of the SI Business Promotion Office in April 2026 to expand high-value-added businesses as part of the company’s business portfolio transformation.

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.