6546.T

2025 Consolidated Full Year Results

• Total consolidated revenue was 13.566 billion yen, a 1.8% decrease YoY. Gross profit increased 1.6% YoY to 4.729 billion yen, while selling, general and administrative expenses increased 5.8% YoY to 4.273 billion yen.
• Operating profit decreased 25.6% YoY to 456 million yen, ordinary profit decreased 21.9% YoY to 528 million yen, and net income attributable to parent company shareholders decreased 45.4% YoY to 250 million yen. The large decline in net income was driven by an 87 million yen impairment loss on goodwill and fixed assets from a business plan revision for subsidiary Y's Corporation.
• Revenue declined due to a high base effect from large prior-period projects, extended construction timelines that pushed revenue recognition to future periods, despite strong order intake for new automatic doors and fixture business.
• Profit declined because higher gross profit could not fully offset increased human resource investment costs, including salary increases and recruitment advertising expenses.

2026 Key Priority Initiatives

• Securing and developing talent: Maintain the company's strength of in-house end-to-end operations for sales, design, manufacturing, construction, and maintenance by boosting recruitment through improved brand awareness, improving working conditions via salary increases and health-focused management, and increasing talent retention to support sustainable growth.
• New product and service development: Strengthen product development capabilities to respond to diversifying demand for automatic doors including accessibility, energy efficiency, and non-contact operation, and launch new products and services.
• Profit structure reform: Deepen demand for high-margin renewal and maintenance services, primarily in the Tokyo metropolitan area, fully enter the entrance surrounding renovation business to promote total renewal projects, expand the "Fi-R" program and acquire new customers without existing maintenance contracts to grow contracted maintenance units and strengthen the earnings base.
• Business area expansion: Target national expansion through future entry into the Chubu and Western Japan regions, and actively pursue M&A opportunities.

2025-2027 Mid-Term 3-Year Management Plan

• Positioned as the first step toward achieving Vision 2030, to transition from a subcontractor-type business to a technology development-focused sales company.
• Core strategic priorities: new product and service development, growing maintenance contract units, promoting total renewal projects, and improving corporate value.
• 2027 numerical targets: 16.2 billion yen in revenue, 1.1 billion yen in ordinary profit, 9.2% ROE; the company will consider revising the plan based on gaps between 2026 projections and 2027 targets.
• Focus areas: Combine Fulltech's opening/closing drive technology and maintenance capabilities with Y's Corporation's security and control technology for new product development; target 96,500 contracted maintenance units by 2027; established a new Renovation Division in January 2026 to drive total entrance renovation projects in the Tokyo metropolitan area; set 2027 corporate value targets of 50%+ payout ratio, 3.0% DOE, 9%+ ROE, and 1.0x+ PBR.

• 2026 Consolidated Full Year Projections: Management projects 3.2% YoY revenue growth to 14.0 billion yen, 31.6% YoY operating profit growth to 600 million yen, 19.1% YoY ordinary profit growth to 630 million yen, and 60.0% YoY net income growth to 400 million yen. Growth is driven by revenue conversion of existing order backlog for fixture business and expanding renewal orders, while the 2025 impairment loss will not recur in 2026. Increased costs including personnel expenses from hiring and salary increases, and depreciation for core system updates are already incorporated into projections.
• 2026 Segment Guidance:
  1. Automatic door related business: 2.0% YoY revenue growth to 8.846 billion yen, 9.4% YoY segment profit growth to 2.231 billion yen. New installations are projected to stay flat (0.7% growth) amid continued selective order intake, with growth coming from steady increases in maintenance contracted units and deeper demand for renewal projects.
  2. Fixture related business: 6.1% YoY revenue growth to 4.284 billion yen, 10.6% YoY segment profit growth to 511 million yen, driven by conversion of strong order backlog to revenue and continued strict profitability management.
  3. Other business: 1.6% YoY revenue growth to 870 million yen, segment profit of 58 million yen (73 million yen profit improvement YoY) driven by management improvements at Y's Corporation.
• Shareholder Return Guidance: 2026 planned dividend of 34 yen per share, a 2 yen increase from 2025, for an expected payout ratio of 45.6%. The long-term target for 2027 and beyond is a 50%+ payout ratio and 3.0% DOE, to balance stable sustained returns with retained earnings for future business expansion and balance sheet strengthening.

1. Automatic door related business: Revenue of 8.671 billion yen (2.8% increase year-over-year), accounting for 63.9% of total consolidated revenue. Segment profit was 2.039 billion yen (6.6% decrease YoY). Breakdown: new installations: 1.44 billion yen (7.6% decrease YoY), maintenance: 4.201 billion yen (2.6% increase YoY), renewal/replacement: 3.029 billion yen (8.8% increase YoY). Total automatic door units sold were 14,443 (1.3% decrease YoY), with contracted maintenance units reaching 93,456 (1.5% increase YoY).
2. Fixture related business: Revenue of 4.038 billion yen (8.1% decrease YoY), accounting for 29.8% of total consolidated revenue. Segment profit was 462 million yen (50.4% increase YoY). Order backlog reached 5.009 billion yen (18.9% increase YoY) at period end.
3. Other business: Revenue of 856 million yen (12.9% decrease YoY), accounting for 6.3% of total consolidated revenue. Segment posted a loss of 15 million yen, representing a 18 million yen improvement in profit YoY, driven by reduced losses from subsidiary operations.

• Project revenue recognition is dependent on construction timelines: A high volume of long-duration construction projects in the current order backlog can delay revenue recognition and push earnings into future periods, creating near-term revenue volatility.
• Profitability pressure: Rising personnel investment costs (for recruitment, salary increases, and talent retention) and increasing operating costs for maintenance services can compress margins if sales growth or margin improvement does not offset these cost increases.
• Subsidiary business performance uncertainty: Past performance of Y's Corporation required material impairment charges, so continued operational improvement at the subsidiary is not guaranteed, creating downside risk to other segment earnings.

The provided earning call transcript does not include a question and answer section.