Azbil (6845) Q4 2026 earnings summary

Executive summary

• Orders, sales, and segment profit increased in BA and AA businesses year-over-year, while LA business declined due to the transfer of Azbil Telstar (ATL); excluding ATL, overall orders and sales rose.

• Operating and ordinary income grew year-over-year, exceeding plan, driven by profitability measures, cost pass-through, and foreign exchange gains, despite higher R&D and personnel expenses.

• Net income attributable to owners of parent decreased year-over-year due to a prior-year extraordinary gain from ATL sale, but still exceeded plan due to gains on investment securities.

• Orders received totaled ¥302.4 billion, down 0.8% year-over-year.

Financial highlights

• FY2025 revenue: ¥298.9B (down 0.8% YoY), operating income: ¥47.3B (up 14% YoY), net income: ¥38.6B (down 5.8% YoY).

• Gross margin improved to 46.7% (up 2.8pp YoY); operating margin rose to 15.8% (up 2.0pp YoY).

• Ordinary income rose 15.6% to ¥48.8 billion.

• Overseas sales ratio dropped to 17.5% due to ATL transfer.

• ROE at 15.7%, shareholders’ equity ratio at 76.1%.

Outlook and guidance

• FY2026 revenue projected at ¥315.0B (+5.4% YoY), business profit at ¥48.2B (+4.3% YoY), profit attributable to owners of parent at ¥35.3B (IFRS basis).

• Growth expected in all segments, especially BA and LA, while AA profit is forecast to be flat due to cost pressures; profitability measures and DX initiatives to offset cost pressures.

• IFRS adoption from FY2026; guidance reflects confirmed impacts from Middle East situation.

• Dividend per share for FY2026 is planned at ¥38, plus a ¥12 commemorative dividend for the 120th anniversary.

• Up to ¥20 billion (32 million shares) of stock repurchase planned between May and October 2026.