Azbil (6845) Q4 2026 earnings summary

Executive summary

• Building Automation (BA) and Advanced Automation (AA) segments delivered strong year-on-year growth in orders, sales, and profit, while Life Automation (LA) declined due to the Azbil Telstar (ATL) transfer; excluding ATL, overall orders and sales increased.

• Operating income rose 14% year-on-year to ¥47.3 billion, exceeding plan, driven by profitability measures and cost pass-through, despite higher R&D and personnel expenses.

• Net income attributable to owners declined 5.8% to ¥38.5 billion, reflecting the absence of the prior year's extraordinary gain from the ATL sale, but still exceeded plan due to gains on investment securities.

• Fiscal 2026 is expected to deliver revenue and profit growth across all segments, led by BA, with increased dividends, a commemorative dividend for the 120th anniversary, and expanded share buybacks.

• The medium-term plan is progressing ahead of initial targets, with continued investments in human capital, product competitiveness, digital transformation, and new branding initiatives.

Financial highlights

• FY2025 revenue was ¥298.9 billion (down 0.8% year-on-year), operating income ¥47.3 billion (up 14% year-on-year), and net income ¥38.5 billion (down 5.8% year-on-year).

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

• Free cash flow declined year-on-year due to higher tax payments and increased investing activities, totaling ¥31.5 billion.

• ROE reached 15.7% in FY2025; shareholders’ equity ratio was 76.1%.

• Net assets per share increased to ¥497.71; cash and cash equivalents at year-end were ¥97.9 billion.

Outlook and guidance

• FY2026 revenue is projected at ¥315.0 billion, with business profit of ¥48.2 billion and profit attributable to owners of parent of ¥35.3 billion (IFRS basis).

• Growth is expected in all segments, especially BA, despite inflation and geopolitical risks; profitability measures and digital transformation initiatives will offset cost pressures.

• Dividend per share for FY2026 will rise to ¥50, including a ¥12 commemorative dividend for the 120th anniversary.

• Share buybacks up to ¥20.0 billion or 32 million shares are planned for FY2026.

• IFRS adoption from FY2026; no revision to FY2027 targets at this stage due to ongoing uncertainties.