Okamoto Industries (5122) investor relations material

Executive summary

• Revenue for FY2025 was ¥108 billion, down 1.0% year-over-year, with operating profit at ¥6.2 billion, down 28.2% year-over-year, and net income at ¥4.9 billion, down 27.3%.

• Profit decline was mainly due to higher raw material costs, yen appreciation, and a slowdown in the Chinese economy.

• Comprehensive income rose sharply to ¥19,486 million, driven by gains in valuation differences on securities.

• Share repurchase of 256,792 shares for ¥1.3 billion and sale of investment securities were executed.

• New Okayama Plant completed, with investments in labor-saving equipment and digitalization initiatives.

Financial highlights

• Operating profit exceeded forecast by ¥0.5 billion (+8.7%), while revenue missed by ¥1.0 billion (-0.9%).

• Ordinary profit was ¥8.5 billion (+12.0% YoY), but ordinary income decreased 12.0% year-over-year to ¥8,595 million.

• Net assets increased to ¥110,631 million, with an equity ratio of 67.3%.

• Cash and cash equivalents at year-end were ¥32,572 million, down from ¥38,932 million.

• Gross profit margin declined due to higher cost of sales and raw material prices.

Outlook and guidance

• FY2026/FY2027 revenue forecast at ¥114 billion (+5.5%), with operating income expected to decrease 4.0% to ¥6.0 billion.

• Net income projected at ¥4.8 billion, nearly flat year-over-year.

• Assumes USD/JPY exchange rate of 150; further raw material price increases not reflected in forecast.

• Focus on automation, digitalization, sustainability, and risk management amid uncertain global conditions.

• Continued capital investment in domestic and overseas plants, including new Okayama Plant operations.