Ferrotec (6890) Q4 2025 earnings summary

Executive summary

• Net sales for FY ended March 31, 2025 rose 23.4% year-over-year to ¥274.4 billion, with operating income down 3.1% to ¥24.1 billion due to higher costs and lower photovoltaic-related revenues.

• Profit attributable to owners of parent increased 3.6% year-over-year to ¥15.7 billion.

• All major segments achieved sales growth, with strong performance in thermo-electric modules for AI and automotive applications.

• Dividend per share increased from ¥100 to ¥141, with a new shareholder return policy targeting a DOE of at least 3.5% and a total payout ratio of 50%.

• Comprehensive income grew 41.8% year-over-year to ¥47.8 billion.

Financial highlights

• Net sales: ¥274.4 billion (+23.4% YoY); Operating income: ¥24.1 billion (-3.1% YoY); Net income attributable to owners: ¥15.7 billion (+3.6% YoY).

• Gross profit rose 5% to ¥73.4 billion; SG&A expenses increased 9.5% to ¥49.3 billion.

• Extraordinary loss of ¥860 million due to suspension of photovoltaic wafer production and inventory write-down.

• Capital investment totaled ¥51.8 billion; depreciation increased 44% to ¥23.7 billion.

• Cash and cash equivalents at period end were ¥108.9 billion, up from ¥96.8 billion.

Outlook and guidance

• FY2026 net sales forecasted at ¥285 billion (up 3.9% YoY), with operating profit of ¥28 billion (up 16.2%) and net income of ¥16 billion (up 2.0%).

• Dividend forecast for FY2026 is ¥148 per share, up from ¥141 in FY2025.

• Continued growth expected in semiconductor-related VF and ceramics; quartz and silicon parts to remain affected by client inventory.

• Depreciation to rise to ¥27 billion; capital investment planned at ¥65 billion.