Ryobi Posts Strong Profit Rebound, Lifts Dividend Despite Muted 2026 Outlook

Ryobi ( (JP:5851) ) has issued an update.

Ryobi Limited reported a solid recovery in earnings for the fiscal year ended December 31, 2025, with net sales rising 5.4% year on year to ¥309.1 billion and operating income jumping 33.4%, while net income attributable to owners of the parent surged 61.2%. Profitability ratios improved, equity increased with the equity ratio climbing to 52.2%, and the company raised its annual dividend from ¥85 to ¥100 per share, signaling confidence despite forecasting only modest sales growth and largely flat operating income for 2026.

Cash flow from operating activities declined to ¥13.9 billion while investment outlays increased, leading to negative free cash flow but were partly offset by positive financing cash flows, and year-end cash and equivalents remained broadly stable. For the 2026 fiscal year, Ryobi projects slightly higher full-year sales of ¥313.0 billion and a modest 2.8% rise in net income, alongside a planned further dividend increase to ¥104 per share, suggesting a continued shareholder-return focus even as management guides for slower profit growth and lower earnings in the first half.

The most recent analyst rating on (JP:5851) stock is a Buy with a Yen3097.00 price target. To see the full list of analyst forecasts on Ryobi stock, see the JP:5851 Stock Forecast page.

More about Ryobi

Ryobi Limited is a Japan-based manufacturer listed on the Tokyo Stock Exchange, operating under Japanese GAAP. The company is engaged in industrial manufacturing businesses such as die-cast and related products, serving global automotive and industrial customers and maintaining a diversified revenue base across multiple regions and segments.

Average Trading Volume: 113,091

Technical Sentiment Signal: Buy

Current Market Cap: Yen91.44B

For an in-depth examination of 5851 stock, go to TipRanks’ Overview page.