GS Yuasa (6674) Q4 2026 earnings summary

Executive summary

• Fiscal year 2025 net sales rose to ¥609.0 billion, up 4.9% year-over-year, with operating profit at ¥60.2 billion and net income at ¥41.9 billion, both showing double-digit growth, driven by all major segments and price adjustments.

• Profit growth was supported by higher selling prices, increased sales volumes, and a ¥3.5 billion positive impact from U.S. IRA subsidies, including retroactive recognition for FY2023-2025.

• Extraordinary gains included ¥7.0 billion from the sale of investment securities and ¥1.6 billion from land sales, offset by a ¥3.3 billion provision for Turkish operations.

• The company updated its Vision 2035 and launched its 7th Mid-term Management Plan, targeting ¥720 billion in net sales and ¥65 billion in operating income by FY2028, with a focus on public infrastructure and mobility.

• Comprehensive income more than doubled to ¥66,644 million, reflecting strong business performance and favorable currency translation adjustments.

Financial highlights

• Gross profit rose to ¥155.0 billion (+11.1%), and EPS increased to ¥417.33 (+¥114.08 year-over-year).

• Operating profit increased by ¥10.2 billion year-over-year, despite higher labor and logistics costs.

• Free cash flow was positive at ¥4.6 billion; operating cash flow ¥49.5 billion, investing cash flow ¥-44.9 billion.

• Equity ratio improved to 53.3% from 50.0%, with total assets at ¥741.0 billion and borrowings at ¥87.8 billion.

• ROE improved to 11.5% and ROIC to 14.8%.

Outlook and guidance

• FY2026/FY2027 net sales forecasted at ¥660.0 billion (+8.4%), with operating profit at ¥60.0 billion (flat), and net income projected at ¥36.0 billion, down due to absence of one-time gains.

• Dividend forecast is ¥98 per share, up from ¥90, maintaining a 3% DOE target.

• Mid-term plan targets ¥720 billion in sales and ¥65 billion in operating profit, focusing on investment in social infrastructure and mobility.

• Management highlights ongoing risks from geopolitical tensions and cost pressures but expects continued sales growth in lithium-ion and industrial batteries.