February 16, 2026
KOKUYO Co., Ltd.
- Full-Year FY2025 Results
- Full-Year FY2026 Targets
- Progress in Fourth Medium-Term Plan
- Overview by Business Segment
* The business segments are as follows:
Furniture Businesses: FN Business Supply Distribution: BS Stationery Businesses: ST Interior Retail Businesses: IR
Note:
Unless otherwise indicated, monetary figures are rounded down to the nearest million yen.
As such, the sum of the figures in a breakdown may not match the stated total.
Full-Year FY2025 Results
❏ Net sales, EBITDA, and operating income were significantly higher than in the previous year and exceeded the revised forecasts.
❏ The furniture business generally performed in line with expectations. The business supply distribution and the stationery businesses experienced sharp growth, a key factor being a stoppage that occurred in a distribution and IT system within the mail-order office supplies industry.
❏ Net income decreased relative to the spike in the previous year (when we recorded gain on sale of non-business assets). On the other hand,
ROE was 8.4%.
❏ The dividend has been upgraded from the previous forecast by ¥1.5 to ¥24.5. The dividend will have a consolidated payout ratio of 50%, in line with the benchmark set out in the fourth medium-term plan.
Full-Year FY2026 Targets
❏ Net sales, EBITDA, and operating income will increase with growth in each business, particularly in the furniture business.
❏ Net income will decline relative to the spike last year (when we recorded gain on sale of non-business assets).
❏ The dividend will remain at ¥24.5, which aligns with our 50% benchmark for consolidated payout ratio and our increasing-dividend policy.
Progress in Fourth Medium-Term Plan
❏ We made good progress in the first year of the fourth medium-term plan. EBITDA increased and we achieved steady revenue growth in our overseas businesses.
❏ We have allocated funds from our ¥70 billion Growth CapEx budget, creating stepping stones to future growth.
❏ Furniture: We have invested in production and logistics PP&E to improve our capacity to take on contracts.
❏ Business supply distribution: We have invested in an IT system and distribution infrastructure to drive forward our purchasing platform strategy.
❏M&A: We have made M&A deals to facilitate our global expansion and shore up our businesses in Japan.
❏ Financial and capital strategies: We made steady progress in capital allocations.
❏ Cash on hand was less than initially expected because of our investments in growth activities and with the payment of dividends.
❏ We continue to sell off cross-held shares, such that they now account for less than 5% of consolidated net assets, in line with our
Full-Year FY2025 ResultsNet sales, EBITDA, and operating income increased, exceeding the targets.
Net income decreased but exceeded the target. ROE was 8.4%.
(Millions of yen)
Full-year | |||||
FY2024 result | FY2025 result | YoY change (%, pt) | Vs target (%, pt) | Revised target | |
Net sales | 338,837 | 359,876 | +6.2% | +0.8% | 357,000 |
Gross profit | 133,424 | 144,469 | +8.3% | -0.2% | 144,700 |
(ratio) | 39.4% | 40.1% | +0.8pt | -0.4pt | 40.5% |
EBITDA | 31,493 | 34,886 | +10.8% | +2.6% | 34,000 |
(ratio) | 9.3% | 9.7% | +0.4pt | +0.2pt | 9.5% |
Operating income | 22,531 | 26,247 | +16.5% | +5.0% | 25,000 |
(ratio) | 6.6% | 7.3% | +0.6pt | +0.3pt | 7.0% |
Net income attributable to owners of parent | 21,787 | 21,473 | -1.4% | +4.7% | 20,500 |
(ratio) | 6.4% | 6.0% | -0.5pt | +0.3pt | 5.7% |
Overseas sales as percentage of total sales | 13% | 13% | - | - | 13% |
ROE | 8.5% | 8.4% | -0.1pt | - | c. 8% |
In Japan, the biggest growth contributors were the Japanese furniture business and business supply distribution.
The overseas businesses became positive contributors in Q4, culminating in YoY growth on a full-year basis.
Japan: +20,621 Overseas: +1,128 (Millions of yen)
FY2024 result
Other Foreign
exchange
Reconciliation
FY2025 result
In Japan, the biggest contributor was the furniture business.
Overseas, the stationery business became a significant positive contributor in Q4.
Japan: +5,218 Overseas: -192 (Millions of yen)
FY2024 result
Other Foreign
exchange
Reconciliation
FY2025 result
Net sales growth in each business was complemented by an improvement to profitability from price revisions and a decline in sales costs.
We used strategic budget allocations (including in personnel and our IT system) to drive our medium-and long-term strategies.
Gross profit: +11,045 SG&A: -7,330 (Millions of yen)
Enhancing IT systems, other IT infrastructure investments
Price revisions, decline in sales costs
Hiring more staff, across-board pay raises
FY2024 result
Revenue growth
Profitability improvement
Personnel
expenses
Activity
expenses
Capital expenditures
IT system Logistics costs expenditures
Other
FY2025 result
Cash Flow Performance
OCF decreased ¥2.0 billion YoY with higher income taxes and other factors.
ICF decreased ¥16.8 billion to minus ¥4.6 billion, partly due to higher capital expenditure.
(Millions of yen)
FY2024 result | FY2025 result | YoY change | Key factors | |
Cash flows from operating activities | 16,377 | 14,369 | -2,008 | ・Higher income taxes |
Cash flows from investing activities | 12,254 | -4,606 | -16,860 | ・Higher capital expenditure ・Differential cash flow created by sale of non-business assets |
Free cash flow | 28,631 | 9,763 | -18,868 | |
Cash flows from financing activities | -15,624 | -31,649 | -16,025 | ・Higher dividend payment ・Higher purchase of treasury shares (higher spending on buybacks) |
Effect of exchange rate changes on cash and cash equivalents | 1,261 | 412 | -849 | |
Increase from new business consolidations | 2,650 | - | - | |
End balance of cash and cash equivalents | 132,080 | 110,606 | -21,474 |
Balance Sheet Performance
Cash and cash equivalents decreased with ICF outweighing OCF and with negative FCF. Buybacks decreased equity slightly, resulting in a lower equity ratio.
(Millions of yen)
FY2024 end | FY2025 end | YoY change | |
Cash and cash equivalents | 132,080 | 110,606 | -21,474 |
Notes and accounts receivable and contract assets | 75,383 | 82,116 | 6,733 |
Inventory assets | 38,853 | 43,346 | 4,493 |
Other non-current assets | 6,566 | 6,818 | 252 |
Property, plant and equipment | 63,241 | 65,572 | 2,331 |
Intangible assets | 12,961 | 15,082 | 2,121 |
Investment securities | 22,362 | 18,022 | -4,340 |
Other fixed assets | 11,509 | 13,482 | 1,973 |
Total assets | 362,959 | 355,048 | -7,911 |
FY2024 end | FY2025 end | YoY change | |
Notes and accounts payable-trade | 54,357 | 58,334 | 3,977 |
Interest-bearing liabilities | 4,177 | 3,471 | -706 |
Other liabilities | 40,361 | 37,763 | -2,598 |
Total liabilities | 98,895 | 99,568 | 673 |
Owned capital | 260,552 | 251,678 | -8,874 |
Non-controlling interests | 3,509 | 3,778 | 269 |
Net assets | 264,062 | 255,457 | -8,605 |
Equity ratio | 71.8% | 70.9% | -0.9pt |
Full-Year FY2026 Targets
Business growth and aggressive investment will result in huge growth in net sales and growth in EBITDA and operating income.
Net income will decline relative to the spike that occurred when we recorded gain on sale of non-business assets.
(Millions of yen)
Full-year | ||||
FY2025 result | Target for 2026 | YoY change | % YoY change | |
Net sales | 359,876 | 390,000 | +30,124 | +8.4% |
Gross profit | 144,469 | 160,300 | +15,831 | +11.0% |
(ratio) | 40.1% | 41.1% | - | +1.0pt |
EBITDA | 34,886 | 37,700 | +2,814 | +8.1% |
(ratio) | 9.7% | 9.7% | - | -0.0pt |
Operating income | 26,247 | 27,000 | +753 | +2.9% |
(ratio) | 7.3% | 6.9% | - | -0.4pt |
Net income attributable to owners of parent | 21,473 | 20,300 | -1,173 | -5.5% |
(ratio) | 6.0% | 5.2% | - | -0.8pt |
Overseas sales as percentage of total sales | 13% | 13% | - | - |
ROE | 8.4% | >8% | - | - |
Full-Year FY2026 Targets: Contributors to YoY Change in Net Sales
Japan: Net sales will increase in each business. The furniture business will benefit from a brisk market and the business supply distribution business will focus on gaining new customers.
Overseas: Of the two businesses, the furniture business will be the main contributor. It will benefit from new business combinations.
Japan: +25,192 Overseas: +5,718 (Millions of yen)
FY2025 result Other Reconciliation FY2026 target
Japan: The furniture business, benefiting from a brisk market, will drive the growth in operating income. Operating income will decrease in the business supply distribution business because of amortization expenses.
Overseas: Of the two businesses, the furniture business will be the main contributor.
Japan: +2,318 Overseas: +1,441 (Millions of yen)
FY2025 result Other Reconciliation FY2026 target
SG&A ratio to sales will increase because of strategic expenditures for driving our medium- and long-term strategies. However, this will be more than offset by higher gross profit rate.
Gross profit: +15,831 SG&A: -15,078 (Millions of yen)
Hiring more staff, across-board pay raises
(although personnel expenses to
sales ratio will remain at the
previous year's level)
Depreciation expenses and rent increases
associated with logistics
investments
FY2025
result
Higher revenue Better profitability
Personnel expenses
Activity expenses
Capital expenditures
IT system expenditures
Logistics costs
Other
FY2026 target
15
Note: The targets for 2026 do not include the targets for TLG.
We are allocating strategic expenditures to build huge EBITDA growth over the three-year period of the fourth medium-term plan.
Strategic expenditures to drive our medium- and long-
term strategies
Main cost increases over 2024-2026 period
・Higher M&A-related spending
・Spending on talent necessary to drive global business expansion
・Spending to overhaul aging IT infrastructure
(from 2026)
・Spending on rebranding campaign
Spending on relocation of Osaka head office
Strategic expenditures
Inter-year comparison in operating income reconciliation* and EBITDA
Strategic
expenditures
Regular operating expenses
EBITDA
Strategic
Expenses incurred through normal operations,
including personnel expenses (head office staff,
general recruitment and training), IT system expenses, and maintenance CapEx
(in 2026, rent expense will increase because of the relocation of the Osaka head office)
expenditures drive EBITDA growth
Regular operating expenses
0
Operating income
reconciliation*
2024 result 2025 result 2026 target 2027 target
16
* Operating income reconciliation includes the elimination of intersegment transactions and corporate expenses. The corporate expenses consist mostly of expenses relating to administration departments of the parent company
headquarters that are not attributable to reportable segments. 16
In line with our shareholder returns policy (≥50% consolidated payout ratio, increasing dividend), the year-end dividend for FY2025 will be increased ¥1.5 (making a full-year dividend of ¥24.5) from the previous forecast. The dividend for FY2026 will be the same as that for FY2025 (¥24.5).
Inter-year comparison in dividend per share and consolidated payout ratio (Yen)
Dividend per share
Payout ratio
2026 forecast
Note: On July 1, 2025, we conducted a 4-for-1 split of common stock. In the above graph, dividend per share is based 17
on the post-split stock.
Progress in Fourth Medium-Term PlanWe have made good progress in the fourth medium-term plan. EBITDA has increased and our overseas businesses have been delivering sales growth. We have allocated funds from our ¥70 billion Growth CapEx budget, creating stepping stones to future growth.
2024
result
2025
result
2026
target
2027
target
2030
target/projection
Net sales (growth rate) | ¥338.8 bn (+2.8%) | ¥359.8 bn (+6.2%) | ¥390.0 bn (+8.4%) | ¥430.0 bn | ≥¥500.0 bn | |
(+8%/year) | ||||||
Financial KPIs | Overseas sales as percentage of total sales | 13% | 13% | 13% | 20.0% | ≥25% |
EBITDA EBITDA margin (%) | ¥31.4 bn 9.3% | ¥34.8 bn 9.7% | ¥37.7 bn 9.7% | ≥¥43.0 bn | ≥¥55.0 bn | |
10.0% | ≥11 % | |||||
ROE | 8.5% | 8.4% | >8.0% | ≥9.0% | ≥10 % |
Referential indicator | Operating income ¥22.5 bn ¥26.2 bn ¥27.0 bn Operating income ratio 6.6% 7.3% 6.9% | c. ¥30.0 bn c. 7% | ≥¥38.0 bn ≥7.5% |
Note: The targets for 2026 do not include the targets for TLG. 19
The performance of each business is improving. We are making efforts to deliver even higher sales growth and a wider EBITDA margin.
High
② Maintain growth, improve profitability
2025
7.0
① Top priority
Furniture
2027
38.5 bnSales growth rate
Develop e-commerce
Expand B2B
Expand residential services
2027
Interior retail
1.8 bn
bn
2027
8.8 bn
Business supply distribution
Gain competitive advantage in
e-commerce
Further improve Japanese business
Expand from China to
ASEAN
Penetrate Australia and India
2025
28.9 bn2024
2024
0.8 bn
2025
1.0bn
2024
6.2 bn
Build purchase-management platform
2027
9.7 bn
2025
Stationery
Grow businesses in India and ASEAN
Build learning style brand
2024
8.0 bn
9.0 bn
Develop global products
Low
④ Clarify position ③ Explore fresh growth options
Low
Profitability = EBITDA margin
EBITDA margin (both for Japan and overseas businesses) indicates the margin before G&A expenses (expenses not tied to a particular department or business)
High
① Top priority:
Use growth CapEx to drive growth
② Maintain growth, improve profitability:
Use growth CapEx to drive growth and improve
profitability over longer term
③ Explore fresh growth options: Find cash cows and growth opportunities and allocate
growth CapEx to them
④ Clarify position:
Consider selling off or disinvesting if unfeasible to move
to other quadrant or synergize with other business
20
Reproduced from fourth
medium-term plan
Growth CapEx
CapEx is primarily allocated to drive growth in the core businesses (e.g. the Japanese furniture business) and improve profitability. The M&A budget may be exceeded depending on the prospective M&A deals.
Key growth CapEx themes
For M&A, may go over budget depending on prospective deals | ||
M&A 20.0 bn | ||
Investments in existing overseas businesses 5.0 bn | ||
System investments in Japan 10.0 bn | ||
PP&E investments in Japan 35.0 bn |
21
Growth CapEx outlook
Growth CapEx budget:
70.0 bn
2025-2027
PP&E investments in Japan | ||
Furniture businesses | ・Productivity improvements in furniture and building material plants ・Logistics improvements to address high logistics costs | |
Business supply distribution | ・Infrastructure for purchase-management platform | |
System investments in Japan | ||
Furniture businesses | ・Productivity improvements across value chain | |
Business supply distribution | ・Infrastructure for purchase-management platform | |
Interior retail businesses | ・OMO (offline stores merged with online store) | |
Investments in existing overseas businesses | ||
Furniture businesses | ・Transforming ASEAN supply chain | |
Stationery businesses | ・Insourcing global products | |
M&A | ||
Furniture businesses | ・Expanding to and penetrating global markets ・Leading innovation in Japan and overseas | |
Stationery businesses | ・Expanding to and penetrating new markets (e.g. ASEAN) | |
21
PP&E Investments and IT System Investments in the Furniture Business
We have invested in production and distribution assets to increase our capacity to take on office
furniture contracts, striking a balance between covering a wide array of office furniture demand and keeping production efficient.
Growth CapEx outlook
Upgrade of building materials zone
Two new painting lines
New multipurpose
Growth CapEx budget:
70.0 bn
New zone for building materials and
painting
Building materials zone
Deliveries zone
Processing zone
Painting zone
Resin zone
zone
For M&A, may go over budget depending on prospective deals | ||
M&A 20.0 bn | ||
Investments in existing overseas businesses 5.0 bn | ||
System investments in Japan 10.0 bn | ||
PP&E investments in Japan 35.0 bn |
New Shiga distribution center (furniture business)｜To be completed in 2029
Some ¥8.0 bn to be invested over period of 4th mtp (total investment: ¥17.6 bn)
2025-2027
Office
Upgrade to dynamic cellular production system
New painting line
駐車場新設 駐 車場新設
Shibayama Plant (furniture)｜To be completed in 2029 Some ¥5.0 bn to be invested over period of 4th mtp
(total investment: ¥9.9 bn)
Mie Plant (furniture)｜To be completed in 2029 Some ¥4.0 bn to be invested over period of 4th mtp (total investment: ¥7.0 bn)
Shibayama plant: Our center for building-material production, the plant handles a wide range of items with high quality levels and high production capacity. Mie plant: Our center for desk and chair production, the plant will provide cost efficiencies and
technological excellence for future order-made furniture operations.
New Shiga distribution center: The center will increase productivity by operating at the fulcrum of our distribution operations once they have been
concentrated. 22
Office
PP&E Investments and IT System Investments in the Business Supply Distribution Business
To upgrade our purchasing platform, we have used growth CapEx to equip the Kaunet e-commerce website with purchase management functions (the core functions of Benri Net) and to develop our logistics infrastructure.
Growth CapEx outlook
Growth CapEx budget:
70.0 bn
Purchasing Platform Strategy
・Convert Benri Net into a purchasing platform and increase linkage with big-name e-commerce sites and trading companies
Kaunet IT system investment (business supply distribution)
｜Total investment: ¥4.0 bn. Implementation to begin in 2028.
・We will extend platform coverage from large companies to all customers
・This platform strategy will create an upward spiral of continual growth in both linked suppliers and customers
For M&A, may go over budget depending on prospective deals | ||
M&A 20.0 bn | ||
Investments in existing overseas businesses 5.0 bn | ||
System investments in Japan 10.0 bn | ||
PP&E investments in Japan 35.0 bn |
Office goods, homeware / everyday goods | ||
MRO Company A | ||
Electrical Company B appliances | ||
Tools Company C | ||
i Scientific s Company D nstrument | ||
Printing Company E | ||
Locally rooted suppliers | ||
Industry-specific trading companies | ||
New purchasing platform
・Purchase management functions
・Linked with wide array of suppliers
Offer enlarged
lineup (consisting of our products and those of trading companies) to fully capitalize on office supplies demand
2025-2027
Obtain distribution fees from linked suppliers
Tohoku IDC (business supply distribution)｜Total investment: ¥4.0 bn.
Center to enter service in 2026.
23
Growth CapEx outlook
Growth CapEx budget:
70.0 bn
2025-2027
Acquisition and integration of 6 Japanese sales companies
(total purchase price expected to be approximately ¥4.0 billion)
Acquisition of Thien Long Group Corporation
(total purchase price expected to be approximately ¥27.6 billion)
Acquisition of Kokuyo Workplace India
(not disclosed)
The acquisition of a robust infrastructure for writing tools will expedite our expansion in ASEAN markets (the
transaction is expected to be completed in November 2026).
The acquisition of production and sales functions will grant us an early entrance into the promising Indian market.
This action will shore up the competitiveness of our sales network in Japan. We will use this competitive advantage to further grow our B2B business in Japan and improve the prospects of continuity (the integration is scheduled for January 2027).
We have made M&A deals to facilitate our global expansion and shore up our businesses in Japan.
For M&A, may go over budget depending on prospective deals | ||
M&A 20.0 bn | ||
Investments in existing overseas businesses 5.0 bn | ||
System investments in Japan 10.0 bn | ||
PP&E investments in Japan 35.0 bn |
The PMI is on track. We are laying the infrastructure for driving the growth strategy.
At Orgatec India, KWI succeeded in raising the profile of the KOKUYO brand, earning the Best Booth Design Award.
Interior design excellence in Japanese furniture business
Competitive advantage 4 Has customer-handling excellence for maintaining customer confidence
Competitive advantage 3 Formidable production and
supply capacities
Competitive advantage 2 Has rapport with specification
influencers
Competitive advantage 1
Excellent relationship with local customers
Examples of how KWI is combining its competitive advantages with KOKUYO for co-creation
In line with our long-term vision, we launched a rebranding campaign to create stronger touchpoints with new users around the world, encourage growth and a mindset transformation among employees, improve recruitment, and achieve other outcomes that improve our organization's
value.
No. of fresh graduate
applicants
(% change between 2024 crop* and 2026 crop)
Approx.
+23%
2023
Launched rebranding campaign
・Launched TV ad campaign
Challenge-taking culture
score in engagement survey
+5pt(pt change between 2023
result and 2025
result)
2025
•
Revamped website
・Produced short movie
The rebranding has bolstered our strategic assets for driving global business growth.
Change in cash and cash equivalents
(Millions of yen)
Opening
balance
OCF
ICF
FCF
Adjustment Closing
balance
FCF
ICF
In 2026, we will further reduce cash and cash
equivalents by investing in excess of OCF and delivering shareholder returns.
Outflows
Purchase of treasury shares: ¥20.0 billion Dividends paid: ¥9.5 billion
Inflows
Proceeds from sales and redemption of investment securities: ¥5.7 billion Proceeds from sales of property, plant and equipment: ¥2.0 billion
Outflows
PP&E investments: ¥11.2 billion
Cash on hand has decreased as a result of proactive investment, stock buybacks of ¥20 billion, and payment of dividends with a payout ratio of 50%.
We continue to offload cross-held shares. The fourth medium-term plan commits us to reducing them until they represent less than 5% of consolidated net assets.
Proceeds from sale of cross-held shares, cross-held shares as a percentage of consolidated net assets
Proceeds from sale Cross-held shares of cross-held shares as a percentage of
(100 million yen) consolidated net assets
Cost of equity is estimated to have increased to 7-8% given the risk-free rate increase and insights
from dialogue with investors. The fourth medium-term plan commits us to improving capital efficiency.
(Previous year: 6-7%)
Capital efficiency to be improved in line with
fourth medium-term plan
Cost of equity: 7-8%
Earnings yield: 6%
CAPM basis: 7-8%
ROE
Estimate according to capital asset pricing model (CAPM):
① Risk-free rate 2.0-2.5%
② Systematic risk (β)
0.7-0.8
③ Risk premium 6.7%
④ Cost of equity 7-8%
*10-year government bond yield 29
Overview by Business Segment