DENSO (6902) Q4 2025 earnings summary

Executive summary

• Revenue increased year-over-year to ¥7,161.8 billion, supported by yen depreciation, cost management, and R&D recovery, despite lower vehicle production in Asia and Japanese customer suspensions.

• Operating profit rose 36.4% year-over-year to ¥519.0 billion, driven by foreign exchange gains, cost reductions, and business agility improvements.

• Profit attributable to owners grew 34.0% to ¥419.1 billion, with ROE improving to 8.0%.

• Comprehensive income turned negative at ¥(136.6) billion due to large fair value losses on equity instruments.

Financial highlights

• FY2025 revenue: ¥7,161.8B (+0.2% YoY); operating profit: ¥519.0B (+36.4% YoY, margin 7.2%).

• Profit before income taxes: ¥578.0B (+32.5% YoY); net profit: ¥419.1B (+34.0% YoY).

• Dividend for FY2025: ¥64 per share, up ¥9 from previous year; DOE at 3.5%, payout ratio 44.1%.

• Net cash from operating activities was ¥758.7B, down from ¥961.8B prior year; cash and cash equivalents at year-end increased to ¥986.5B.

• Equity ratio remained strong at 61.3%.

Outlook and guidance

• FY2026 revenue forecast: ¥7,050.0B (-1.6% YoY), reflecting a stronger yen.

• Operating profit forecast: ¥675.0B (+30.1% YoY, margin 9.6%); net profit: ¥515.0B (+22.9% YoY).

• Dividend forecast for FY2026: ¥64 per share.

• Exchange rate assumptions: 1USD = 145 yen, 1EUR = 160 yen.