Fuji Electric (6504) Q4 2025 earnings summary

Executive summary

• Achieved record highs in net sales, operating profit, ordinary profit, and profit attributable to owners of parent for FY2025, with operating profit ratio surpassing 10%.

• FY2025 management plan targets year-on-year increases in sales and profit, with an operating margin above 10% and net profit margin above 7%.

• Growth was driven by strong plant/system demand, high-value product launches, and robust capital investment in manufacturing and data centers, offsetting weak machine tool demand and mixed xEV trends.

• Segment reorganization effective April 1, 2025, aims to generate synergies in Energy and Industry, while integrating new businesses.

• Higher sales and profit in Energy and Industry segments are expected to offset declines in Semiconductors and Food and Beverage Distribution.

Financial highlights

• Net sales reached ¥1,123.4 billion (+1.8% YoY), with operating profit at ¥117.6 billion (+11% YoY), and ordinary profit at ¥118.8 billion (+10% YoY).

• Profit attributable to owners of parent grew to ¥92.2 billion (+22% YoY), with a margin of 8.2%.

• Free cash flow rose sharply to ¥81.5 billion, up ¥59.1 billion YoY.

• Annual dividend increased to ¥160 per share, payout ratio 25.6%.

• Gross margin improved to ¥317.9 billion from ¥303.3 billion YoY.

Outlook and guidance

• FY2026 guidance: Net sales ¥1,140.0 billion (+1.5% YoY), operating profit ¥118.0 billion (+0.3% YoY), profit attributable to owners of parent ¥81.0 billion (−12% YoY).

• Segment forecasts: Energy and Industry to grow, Semiconductors and Food & Beverage Distribution expected to decline.

• Ongoing aggressive capital and R&D investments in growth fields, with management of investment speed based on demand.

• Free cash flow expected to decrease to ¥32.0 billion.

• Forward-looking statements subject to uncertainties and may differ materially from projections.