Japan Aviation Electronics Industry (6807) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025 were ¥166,787 million, nearly flat year-over-year, driven by automotive market growth and industrial recovery, but profitability declined due to higher raw material costs and new product launch expenses.

• Operating profit dropped 52% year-over-year to ¥5,916 million, and net profit attributable to owners of parent fell 48% to ¥4,549 million.

• Comprehensive income decreased 16.5% year-over-year to ¥8,827 million.

Financial highlights

• Net sales for Q3 FY2025 were ¥56,300 million, up 6% year-over-year; capital investment increased to ¥15,200 million, and depreciation was ¥14,590 million.

• Gross profit for the period was ¥26,314 million, with a gross margin of 15.8%, down from 18.8% the previous year.

• Basic earnings per share declined to ¥67.49 from ¥129.44 year-over-year.

• Total assets increased to ¥231,268 million, and net assets rose to ¥139,723 million as of December 31, 2025.

• Equity ratio decreased to 60.3% from 62.0% at the previous fiscal year-end.

Segment performance

• Connector segment sales rose 1% year-over-year for the nine months, with Q3 up 7%; segment profit margin declined to 6.1% from 9.0%.

• UIS segment sales fell 19% year-over-year for the nine months, with segment profit nearly eliminated.

• Aerospace segment sales decreased 4% year-over-year for the nine months, with segment profit margin dropping to 6.2% from 12.9%.

• Automotive market sales grew 2% year-over-year for the nine months and 8% for Q3; industrial & infrastructure sales were flat for the nine months but up 9% in Q3.

• Defense & space sales increased 19% year-over-year for the nine months and 34% for Q3.