Murata Manufacturing (6981) investor relations material

Executive summary

• FY2025 revenue reached a record high at 1,830.9 billion yen, driven by strong capacitor and AI-related component sales for servers and data centers, offsetting declines in smartphone-related modules amid a challenging global environment and yen appreciation.

• Operating profit rose 0.8% year-over-year to 281.8 billion yen, supported by higher production output and cost reductions despite price declines, one-time expenses, and impairment losses.

• Battery business achieved full-year profitability, with strategic focus shifting to data center, PT/OPE, BBU, and ESS markets.

• Orders and backlog increased, with a book-to-bill ratio of 1.24 in Q4 FY2025, reflecting robust demand, especially from data centers.

• Growth in multilayer ceramic capacitors (MLCCs), inductors, and EMI filters offset declines in high-frequency modules and multilayer resin substrates for smartphones.

Financial highlights

• Revenue: 1,830.9 billion yen (+5.0% YoY); Operating profit: 281.8 billion yen (+0.8% YoY); Profit before tax: 308.6 billion yen (+1.4% YoY); Net profit: 233.9 billion yen (+0.0% YoY).

• Gross margin was 42.2%, with operating margin at 15.4% and profit before tax margin at 16.9%.

• Basic earnings per share rose to 127.66 yen from 125.08 yen year-over-year.

• Total assets increased 5.6% to 3,199.1 billion yen; equity ratio remained high at 85.0%.

• Cash and cash equivalents at year-end: 653.7 billion yen (+28.6 billion yen YoY); cash flow from operations was 425.2 billion yen.

Outlook and guidance

• FY2026 revenue projected at 1,960.0 billion yen (+7.1% YoY), with operating profit forecast at 380.0 billion yen (+34.8% YoY); net profit projected at 293.0 billion yen (+25.3%).

• ROIC (post-tax) expected to rise to 12.3% from 9.7%.

• Strong growth expected in data center-related demand, especially for capacitors and power modules.

• Annual dividend to increase to 70 yen per share, and a share buyback up to 150 billion yen is planned.

• Capital expenditures planned at 250.0 billion yen, with continued investment in MLCC capacity.