Aichi Steel (5482) Q4 2025 earnings summary

Executive summary

• FY2025 revenue reached a record ¥299,287 million, up 0.9% year over year; operating profit rose 15.9% to ¥12,016 million and parent-attributable profit rose 18.6% to ¥7,820 million.

• Comprehensive income rebounded to ¥50,181 million from a loss of ¥10,644 million, mainly on gains from pension remeasurements and fair-value changes in equity instruments.

• FY2026 guidance targets revenue of ¥300,000 million, operating profit of ¥14,000 million and parent-attributable profit of ¥9,500 million.

Financial highlights

• Revenue increased ¥2.7bn year over year; gross profit rose to ¥39,941 million from ¥39,049 million.

• Sales volume fell 2% to 962kt despite revenue growth; operating margin improved to 4.0% from 3.5%.

• Higher selling prices, lower purchased-input prices and factory cost reductions supported operating profit; FX was a ¥2.6bn headwind.

• Basic EPS rose to ¥398.02 from ¥334.03, and ROE improved to 3.2% from 2.8%.

• Cash and cash equivalents declined to ¥36,275 million from ¥46,546 million.

Outlook and guidance

• FY2026 revenue is forecast at ¥300,000 million (+0.2%), operating profit at ¥14,000 million (+16.5%) and parent-attributable profit at ¥9,500 million (+21.5%).

• Standalone sales volume is forecast at 1,008kt, up 5%; steel, stainless and smart volumes are expected to rise, while forging is expected to be flat.

• FY2026 operating-profit bridge: selling prices -¥6.5bn, volume +¥2.7bn, purchased-input prices +¥2.7bn and factory cost reductions +¥2.4bn.

• Priorities include expansion outside the Toyota group and cost reduction toward the ¥15.0bn operating-profit target in the 2024–26 mid-term plan.