Mirai Industry Co., Ltd. (TSE: 7931) reported consolidated full-year results for the fiscal year ended March 20, 2026 (FY3/2026) under Japanese GAAP. Revenue rose 1.2% year-on-year to ¥45,673 million, a fresh high for the Gifu-based maker of electrical conduit, wiring boxes and building-equipment components. Profitability slipped slightly: operating profit fell 2.5% to ¥6,723 million from ¥6,897 million, ordinary profit declined 2.4% to ¥6,899 million, and net profit attributable to owners of the parent eased 2.8% to ¥4,696 million from ¥4,833 million. Basic EPS was ¥290.73 versus ¥299.64.
Margins ease as costs outpace modest top-line growth
The headline figures show a company holding revenue near its ceiling while cost pressure nibbles at profit. The operating margin narrowed to 14.7% from 15.3%, and the ordinary-profit margin slipped to 10.2% from 10.9%. Return on equity also came down, to 8.7% from 9.4%. Total comprehensive income, by contrast, rose 4.7% to ¥5,394 million, helped by valuation and other gains below the operating line. The pattern — record sales but gently compressing margins — extends a trend visible in the prior year, when revenue grew 2.3% even as operating profit fell 5.9%.
A fortress balance sheet
Mirai continues to run one of the strongest balance sheets among Japan's mid-cap manufacturers. Total assets rose to ¥68,697 million from ¥66,549 million, while net assets climbed to ¥56,262 million from ¥53,414 million. The equity ratio firmed to 80.7% from 79.2%, and net book value per share advanced to ¥3,430.96 from ¥3,263.69. Shareholders' equity stood at ¥55,450 million. With minimal leverage and a deep equity cushion, the company retains ample capacity for capital returns and reinvestment.
Cash flow and capital allocation
Operating cash flow remained solid at ¥7,081 million, down modestly from ¥7,531 million the year before. Investing activities used ¥4,148 million and financing activities used ¥2,697 million — the latter reflecting dividends and treasury-stock movements. Period-end cash and cash equivalents edged up to ¥19,710 million from ¥19,474 million, underscoring the group's steady internal cash generation.
Year-end dividend raised
Reflecting its capital strength, Mirai lifted the year-end payout. The FY3/2026 annual dividend totalled ¥150.00 per share (¥50.00 interim + ¥100.00 year-end), up from ¥100.00 a year earlier, for a consolidated payout ratio of 50.1% and total distributions of ¥2,581 million. The dividend-on-net-assets ratio was 4.7%. For FY3/2027 the company forecasts a dividend of ¥145.00 (¥50.00 interim + ¥95.00 year-end), keeping the payout in the same generous half-of-earnings range.
FY27 outlook: a softer first quarter
For the new fiscal year ending March 20, 2027, management's published guidance covers the first quarter, where it expects a slower start. Q1 revenue is guided to ¥11,820 million (+1.2%), with operating profit of ¥1,290 million (-12.8%), ordinary profit of ¥1,316 million (-13.0%) and net profit of ¥877 million (-15.0%), implying quarterly EPS of ¥54.30. The double-digit profit declines against a roughly flat top line signal continued cost pressure in the opening quarter, consistent with the margin trend seen in FY3/2026.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 45,673 | 45,113 | +1.2% |
| Operating profit (¥ million) | 6,723 | 6,897 | -2.5% |
| Ordinary profit (¥ million) | 6,899 | 7,067 | -2.4% |
| Net profit attrib. to owners (¥ million) | 4,696 | 4,833 | -2.8% |
| Basic EPS (¥) | 290.73 | 299.64 | -3.0% |
| Operating margin | 14.7% | 15.3% | -0.6pp |
| ROE | 8.7% | 9.4% | -0.7pp |
| Equity ratio | 80.7% | 79.2% | +1.5pp |
| Net assets per share (¥) | 3,430.96 | 3,263.69 | +5.1% |
| Operating cash flow (¥ million) | 7,081 | 7,531 | -6.0% |
| Annual dividend (¥) | 150.00 | 100.00 | +50.0% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.