Fuji Seal International (7864) Q4 2026 earnings summary

Executive summary

• Achieved record highs in net sales (¥217.7B), operating profit (¥20.4B), and net profit (¥20.6B) for FY2025, with net profit up 69.3% YoY due to a one-time gain from the liquidation of a Swiss subsidiary.

• Operating profit margin improved to 9.4%, progressing toward the double-digit target under the FSG.30 strategy.

• Comprehensive income reached ¥20.7B, up 10.3% YoY.

• Annual dividend of ¥81 per share, exceeding the initial forecast, with a payout ratio of 30.2% (excluding one-time impacts).

• Exclusion of Fuji Seal Switzerland AG from the scope of consolidation during the period.

Financial highlights

• Net sales rose 2.5% YoY to ¥217.7B; operating profit increased 8.6% YoY to ¥20.4B; ordinary profit up 20.1% YoY to ¥22.0B.

• Net profit surged 69.3% YoY to ¥20.6B, with net profit margin at 9.5%.

• Earnings per share (basic) increased to ¥387.43 from ¥224.93 YoY.

• Return on equity improved to 13.5% from 8.8% YoY.

• Cash and cash equivalents at year-end were ¥35.3B, up from ¥29.1B.

Outlook and guidance

• FY2026 forecast: net sales to rise 5.0% YoY to ¥228.6B, operating profit up 8.5% YoY to ¥22.2B, and operating margin to reach 9.7%.

• Net profit expected to decrease to ¥15.3B due to absence of one-time gains.

• Basic earnings per share forecast is ¥286.82 for the next fiscal year.

• Dividend forecast for FY2026/FY2027 is ¥87 per share, maintaining a payout ratio of ~30%.

• Assumes continued raw material cost pressures but no major supply disruptions.