Hi-Lex reports strong profit growth, forecasts record 2026 sales

Hi-Lex Corporation reported a substantial improvement in its financial performance for the fiscal year ending October 2025. Despite a revenue decrease of JPY 4,259 million to JPY 304,123 million, primarily due to weak sales from major customers in North America and Europe, operating profit surged by JPY 3,026 million to JPY 3,391 million. This growth was largely attributed to the resolution of one-time expenses incurred in the North American business in the prior year. Net profit also saw a significant boost, increasing by JPY 6,446 million to JPY 8,419 million.

Looking ahead to the fiscal year ending October 2026, Hi-Lex projects robust growth, forecasting consolidated sales of JPY 401,000 million, a 31.9% increase from 2025, and an operating profit of JPY 5,400 million. This forecast includes the impact of the Hi-Lex Act Group. The company also anticipates a net profit of JPY 28,500 million, which incorporates "negative goodwill" of JPY 25,000 million arising from the subsidiary conversion of Hi-Lex Act.

Strategic initiatives include capital expenditure of JPY 98 billion in 2025, with an anticipated JPY 153 billion in 2026, focusing on production base optimization in Japan and North America, and equipment investments in China and Asia. The company is also committed to reducing policy-held shares, targeting 10% of consolidated net assets by 2026, and plans a commemorative dividend for its 80th anniversary.