NJS Co., Ltd. (2325): FY2025 Results Summary — Record Orders, Sales and Profit

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NJS Co., Ltd., a water and environment consulting group, reported record results for FY2025 (the fiscal year ended December 2025). Orders received were 27.64 billion yen (up 18.5% YoY) and net sales were 24.85 billion yen (up 10.0% YoY), while operating income was 3.27 billion yen (up 9.2% YoY) and net income was 2.18 billion yen (up 3.2% YoY). The company states that all figures set new record highs. The presentation, dated March 4, 2026, pairs the FY2025 results with a business strategy for becoming an “Operation Company” in water and the environment.

Consolidated Results (Full-Year Actual)

The FY2025 consolidated results table is presented in units of 100 million yen. Orders received rose 43.1 to 276.4 and net sales rose 22.6 to 248.5. Operating income rose 2.7 to 32.7, with the operating margin at 13.1% against 13.2% in the previous year, and net income rose 0.7 to 21.8, with the net margin at 8.8% against 9.4%.

Item (Unit: 100 million yen)	FY Ended December 2024 (Previous Year)	FY Ended December 2025 (Actual)	Change	Change (%)
Orders Received	233.3	276.4	+43.1	+18.5%
Net Sales	225.9	248.5	+22.6	+10.0%
Operating Income	29.9	32.7	+2.7	+9.2%
(Operating Margin)	(13.2%)	(13.1%)	–	–
Net Income	21.2	21.8	+0.7	+3.2%
(Net Margin)	(9.4%)	(8.8%)	–	–

Revenue by Business (FY2025)

FY2025 sales of 24.9 billion yen break down across five businesses. The company notes that Domestic Consulting currently accounts for 3/4 of sales, while Software, Inspection and Customer services each have growth potential.

Business	Description	FY2025 Sales
① Domestic Consulting	Survey, planning, and design for water and sewerage systems	19.0 billion yen
② Global Solutions	Overseas project promotion for water and sewerage systems	1.9 billion yen
③ Software Service	Survey, development, construction, and operation of information systems	0.5 billion yen
④ Inspection Service	Development and sales of inspection survey services and systems	0.7 billion yen
⑤ Customer service	Fee management and counter services for citizens and users	2.8 billion yen
Total	FY2025 sales	24.9 billion yen

Balance Sheet and Cash Flows

The company states that it maintains an equity ratio of 80% or more and a stable financial base. Stock price per share and market capitalization are also shown on the balance sheet slide.

Item (Unit: 100 million yen)	FY2024 (End)	FY2025 (End)	Change (%)
Assets	311.2	351.0	+12.8%
Liabilities	49.3	65.2	+32.2%
Net Assets	261.9	285.8	+9.1%
Stock Price per Share	3,575 yen	5,100 yen	+42.7%
Market Capitalization	34.19 billion yen	48.77 billion yen	+42.6%

On cash flows, operating cash flow was 2.08 billion yen, cash flows from investing activities were ▲950 million yen, and cash flows from financing activities were ▲970 million yen. The company attributes investing outflows to investment in operation technology development (Software, Inspection) and to expanding business through M&A (Customer service), and financing outflows to distribution of profits through dividend payments.

FY2026 Forecast

For the fiscal year ending December 2026, NJS forecasts orders received of 290.0 and net sales of 280.0 (100 million yen), with operating income of 36.0 and net income of 24.5. The company cites continued increases in measures against aging infrastructure, disaster countermeasures and PPP-related operations, expansion of customer service, and investment in human resources and technology development.

Item (Unit: 100 million yen)	FY Ended December 2025 (Previous Year)	FY Ended December 2026 (Outlook)	Change	Change (%)
Orders Received	276.4	290.0	+13.6	+4.7%
Net Sales	248.5	280.0	+31.5	+11.2%
Operating Income	32.7	36.0	+3.3	+9.2%
(Operating Margin)	(13.1%)	(12.9%)	–	–
Net Income	21.8	24.5	+2.7	+10.9%
(Net Margin)	(8.8%)	(8.8%)	–	–

Shareholder Returns

The annual dividend per share is 105 yen for FY2025 and 110 yen for FY2026. NJS states it is planning for the ninth consecutive year of dividend increases and has set a dividend payout ratio of 40%-50% as its profit returns target.

Item	FY2024	FY2025	FY2026 (To be completed in)
Interim dividends per share	45 yen	50 yen	55 yen
Year-end dividends per share	50 yen	55 yen	55 yen
Annual dividend per share	95 yen	105 yen	110 yen
Dividend payout ratio	42.9%	46.0%	–

Business Strategy for “Operation Company”

Section 2 of the presentation sets out a strategy to become a “Water and Environment Operations Company,” creating operations services based on consulting and software and developing customer services through those initiatives. NJS cites an operating environment of rapid population decline, intensifying natural disasters and aging infrastructure, and new policy trends including Water PPP, with target numbers of 100 water supply projects, 100 sewerage projects and 25 industrial water projects. The company is deploying “Smart PPP,” an information system that supports operations services, and pursuing productivity improvement through BIM/CIM data. Its measures to achieve the “Operation Company” are strengthening integrated management technologies, strengthening regional office structures, strengthening customer services, developing proactive human resources, and enhancing corporate governance.

Revenue Target	2025	2026	2030
Consulting / Software / Inspection	22.1 billion yen	24.5 billion yen	28.5 billion yen
Operation Service	–	–	1.5 billion yen
Customer Services	2.8 billion yen	3.5 billion yen	5.0 billion yen
Total	24.9 billion yen	28.0 billion yen	35.0 billion yen

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.