Sinfonia Technology (6507) investor relations material

Executive summary

• Achieved record highs in orders received, net sales, operating profit, ordinary profit, and net profit for FY2025, driven by recovery in semiconductor markets, strong aerospace and defense business performance, and robust domestic electrical construction demand.

• All major financial metrics exceeded forecasts due to favorable market conditions and robust demand across core segments.

• Orders received rose 10.7% year-over-year to ¥158.9 billion, with net sales up 7.6% to ¥128.2 billion.

• Operating profit increased 17.4% to ¥18.46 billion, ordinary profit up 17.9% to ¥18.79 billion, and net profit up 19.9% to ¥14.5 billion.

• Strong demand in defense, domestic electrical construction, and a recovery in AI semiconductor-related capital investment supported results.

Financial highlights

• FY2025 orders received: ¥158.9 billion, up 10.7% year-over-year; net sales: ¥128.2 billion, up 7.6%.

• Operating profit: ¥18.46 billion, up 17.4%; ordinary profit: ¥18.79 billion, up 17.9%; net profit: ¥14.5 billion, up 19.9%.

• Comprehensive income: ¥22.11 billion (up from ¥7.65 billion year-over-year); cash and cash equivalents at period end: ¥11.62 billion (up ¥1.40 billion year-over-year).

• R&D expenses increased 13% to ¥4.16 billion; capital expenditures surged 162.6% to ¥9.84 billion, mainly for new aerospace facility.

• Free cash flow positive at ¥6.44 billion, despite higher investing outflows; net decrease in borrowings and higher dividend payments.

Outlook and guidance

• FY2026 forecast: orders received ¥170 billion (+7%), net sales ¥140 billion (+9.2%), operating profit ¥21 billion (+13.8%), net profit ¥15 billion (+3.4%).

• FY2027 forecast: net sales ¥140 billion (+9.2%), operating profit ¥21 billion (+13.7%), ordinary profit ¥21 billion (+11.7%), net profit ¥15 billion (+3.5%).

• Year-end dividend for FY2026 proposed at ¥155 per share; FY2027 planned at ¥161 per share.

• Continued growth expected in semiconductor, defense, and aerospace markets, with increased R&D and capital investment to support expansion.

• Management notes ongoing geopolitical and tariff-related uncertainties.