Okamoto Industries, Inc. (TSE: 5122) reported consolidated results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue slipped 1.0% to ¥108,040 million, operating profit fell 28.2% to ¥6,248 million, ordinary profit fell 12.0% to ¥8,595 million, and net profit attributable to owners of the parent fell 27.3% to ¥4,855 million. EPS was ¥282.84, ROE 4.7% and the operating margin 5.8%. Comprehensive income, however, more than doubled (+126.4%) to ¥19,486 million, lifted by gains on investment securities.
Margins squeezed across the product range
Okamoto makes condoms — a category in which it is a global leader — alongside household and industrial gloves, plastic films, and industrial rubber and resin products, plus medical goods. With revenue broadly flat year-on-year, the profit decline was driven by weaker margins rather than volume, as cost pressure compressed profitability across the product range.
Balance sheet and cash flow
Total assets were ¥164,167 million, net assets ¥110,631 million and the equity ratio a robust 67.3% (book value per share ¥6,467.02). Operating cash flow came in at ¥5,746 million, and period-end cash and equivalents stood at ¥32,572 million, underscoring a conservatively financed balance sheet.
Dividend held at ¥120
The FY3/2026 annual dividend was held at ¥120.00 per share (¥60 interim + ¥60 year-end), a consolidated payout ratio of 42.4%. The company forecasts the same ¥120.00 for FY3/2027, signalling a steady shareholder-return policy despite the softer earnings.
FY27 guidance
For FY3/2027, management guides revenue of ¥114,000 million (+5.5%), operating profit of ¥6,000 million (-4.0%), ordinary profit of ¥7,600 million (-11.6%) and net profit attributable to owners of ¥4,800 million (-1.1%), with EPS of ¥279.62. The plan pairs a return to top-line growth with a modestly lower operating result as margin headwinds persist into the new fiscal year.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 108,040 | 109,107 | -1.0% |
| Operating profit (¥ million) | 6,248 | 8,701 | -28.2% |
| Ordinary profit (¥ million) | 8,595 | 9,764 | -12.0% |
| Net profit attrib. to owners (¥ million) | 4,855 | 6,674 | -27.3% |
| EPS (¥) | 282.84 | 383.35 | -26.2% |
| ROE | 4.7% | 7.3% | -2.6pp |
| Annual dividend (¥) | 120.00 | 120.00 | unchanged |
| FY27 operating profit guidance (¥ million) | 6,000 | — | -4.0% |
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.