Elecom Co (6750) Q4 2025 earnings summary

Executive summary

• Net sales increased 7.1% year-over-year to ¥118,007 million, driven by strong performance in power & I/O devices, home appliances (up 78.7% YoY), and storage devices, with notable contributions from M&A activities and strategic sales expansion, including the consolidation of Tescom Denki Group.

• Operating profit rose 9.3% year-over-year to ¥13,531 million, with margin improving to 11.5% due to higher sales, price revisions, and profit-focused measures, offsetting increased SG&A expenses.

• Profit attributable to owners of parent declined 6.9% year-over-year to ¥9,300 million, impacted by foreign exchange losses, absence of prior year tax benefits, and one-time losses from asset retirement and group reorganization.

• Growth was supported by continued investment in new product launches, M&A, and business foundation strengthening.

Financial highlights

• Gross profit increased 8.5% year-over-year to ¥46,189 million, with gross margin up 0.5 points to 39.1%.

• SG&A expenses rose 8.2% year-over-year, mainly from higher personnel and selling expenses, and M&A-related costs.

• Ordinary profit decreased 1.3% year-over-year to ¥13,190 million due to foreign exchange losses.

• Free cash flow improved to ¥12,935 million, supported by better working capital and higher operating cash flow.

• Comprehensive income dropped 50.4% year-over-year to ¥6,686 million, reflecting negative other comprehensive income from currency and hedge valuation changes.

Outlook and guidance

• FY03/26 guidance projects net sales of ¥130,000 million (+10.2%), operating profit of ¥14,900 million (+10.1%), ordinary profit of ¥14,800 million (+12.2%), and profit attributable to owners of parent of ¥10,150 million (+9.1%).

• Focus areas include strategic product development, leveraging the Shenzhen Technology Development Center, overseas expansion, and profit improvement measures to counter yen depreciation and competition.

• Planned dividend increase to ¥52 per share, marking the 16th consecutive annual rise, with a payout ratio target of 30% or above.