OMRON (6645) investor relations material

Executive summary

• FY2025 saw consolidated revenue and profit growth, led by strong performance in Industrial Automation (IAB) due to AI-related demand and customer base recovery, with effective cost control despite margin pressures.

• FY2026 is expected to continue this trend, with revenue and profit growth forecasted across all segments, a dividend increase to JPY 110, and strategic focus on IAB growth, global operations optimization, and portfolio reforms including the DMB carve-out.

• The company is transitioning from US GAAP to IFRS accounting standards in FY2026 and reclassifying DMB as a discontinued business, with the carve-out scheduled for completion by October 2026.

Financial highlights

• FY2025 net revenue rose 7.3% year-on-year to JPY 767.4 billion; operating income up 12.1% to JPY 59.9 billion, with net income attributable to shareholders up 75.1% to JPY 28.5 billion.

• Net income from continuing operations increased 116.3% to JPY 37 billion; EPS up 101.2 to JPY 188.02.

• ROE improved to 4.7% (from 2.2%); ROIC to 3.9% (from 1.9%).

• FY2026 revenue forecast at JPY 820 billion (+6.9% YoY), operating income at JPY 62 billion (+13.9%), and net income at JPY 27.5 billion.

• Dividend for FY2026 projected at JPY 110, up JPY 6 from the previous year.

Outlook and guidance

• FY2026 expects solid demand, especially in IAB, driven by AI, semiconductor, and secondary battery investments, with growth investments and one-time expenses for business foundation strengthening planned.

• Healthcare (HCB) to see stable global demand, though China remains flat; SSB and DSB segments also forecast to grow.

• Net income from continuing operations expected to rise 15.2% to JPY 45 billion.

• Dividend forecast raised by JPY 6 to JPY 110, targeting stable shareholder returns.

• Uncertainty from geopolitical risks and cost impacts are factored into guidance.