Hioki EE (6866) Q4 2025 earnings summary

Executive summary

• Achieved record FY2025 sales of ¥40,531 million (+3.2% YoY), driven by growth in China and battery-related sectors, though profits declined due to one-time 90th anniversary and DX investment costs.

• Operating profit for FY2025 was ¥6,791 million (16.8% margin, -9.8% YoY); ordinary profit fell 11.1% to ¥7,106 million, and net income declined 11.8% to ¥5,457 million.

• Comprehensive income rose 9.1% YoY to ¥6,813 million, reflecting improved other comprehensive income.

• Strategic focus on four core markets: components, batteries, energy, and mobility, with ongoing global expansion and innovation initiatives.

Financial highlights

• Gross profit increased to ¥20,411 million, but higher SG&A expenses led to lower operating profit.

• Overseas sales ratio reached 63.6% in 2025, with China showing 19% growth and India 6.2%.

• Quarterly sales peaked in Q4 2025 at ¥11,312 million.

• Cash flows from operating activities were ¥7,521 million, down from ¥8,874 million the previous year; cash and cash equivalents at year-end were ¥16,723 million.

• Annual dividend per share was ¥200, with a payout ratio of 44.0%.

Outlook and guidance

• FY2026 consolidated net sales are forecast to rise 6.1% to ¥43,000 million, with operating profit expected to grow 13.1% to ¥7,680 million (17.9% margin), net income to ¥6,000 million, and EPS to ¥443.25.

• 2026 expects continued growth in data center, ESS, and automotive R&D sectors, with China, Taiwan, and Southeast Asia as key regions.

• Share buyback up to ¥1.5 billion planned by May 2026.

• Management targets for 2030: operating profit margin 25%, overseas sales ratio 75%, ROE ≥15%.