AECC AERO-ENGINE CONTROL (000738) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was ¥5.17 billion, down 5.64% year-over-year due to product price and tax reforms.

• Net profit attributable to shareholders was ¥334 million, a 55.43% decrease year-over-year.

• Operating cash flow improved significantly to ¥944 million, up 461% year-over-year.

• Gross margin for the main business was 23.13%, down 4.98 percentage points from last year.

• The company remains a leading supplier of aviation engine and gas turbine control systems, with strong R&D and manufacturing capabilities.

Financial highlights

• Total assets at year-end were ¥16.33 billion, up 0.06% from the previous year.

• Net assets attributable to shareholders reached ¥12.46 billion, up 0.95% year-over-year.

• Basic and diluted EPS were both ¥0.25, down 56.14% year-over-year.

• Cash and cash equivalents at year-end were ¥3.47 billion.

• Dividend proposal: ¥0.77 per 10 shares, total cash dividend ¥101 million.

Outlook and guidance

• 2026 revenue target is ¥5.4 billion, a 4.42% increase over 2025.

• Focus areas include strengthening core business, optimizing industry structure, and advancing innovation.

• Plans to enhance cost control, supply chain resilience, and talent development.

• Identified risks include slow conversion of innovation to industrialization and short-term profit pressure from new product ramp-up.