AECC AVIATION POWER (600893) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was ¥46.33 billion, down 3.23% year-over-year; net profit attributable to shareholders was ¥634 million, down 26.27%.

• Gross margin declined due to lower maturity of new products and increased financial expenses.

• Cash flow from operations improved 69.13% year-over-year, mainly from increased cash received from sales.

• Dividend payout ratio was 30.26% of net profit, with a proposed cash dividend of ¥0.72 per 10 shares.

Financial highlights

• Operating income: ¥46.33 billion (down 3.23% YoY); net profit: ¥634 million (down 26.27% YoY).

• Operating cash flow: -¥4.42 billion (improved 69.13% YoY).

• Basic EPS: ¥0.24 (down 25% YoY); ROE: 1.58% (down 0.59pp YoY).

• Gross margin for main business: 9.09%.

• Non-recurring gains: ¥340 million, mainly from asset disposals and government grants.

Outlook and guidance

• 2026 revenue target: ¥49.95 billion; net profit target: ¥524 million.

• Planned investments in fixed assets for 2026: ¥2.16 billion across company and subsidiaries.