Japan Aviation Electronics Industry (6807) Q4 2025 earnings summary

Executive summary

• FY2024 net sales were 221.6 billion yen, down 2% year-over-year, mainly due to discontinued mobile products and sluggish industrial recovery.

• Operating profit rose 8% year-over-year to 15.6 billion yen, driven by improved ADAS harness profitability and favorable exchange rates.

• Profit attributable to owners of parent was 11.6 billion yen, a 5% decrease year-over-year, impacted by lower extraordinary income.

• Connector business saw growth in automotive and aviation/space segments, with USB Type-C sales expanding significantly.

• Comprehensive income dropped 51% to 10.8 billion yen, reflecting negative foreign currency translation.

Financial highlights

• FY2024 net sales: 221.6 billion yen (-2% year-over-year); operating profit: 15.6 billion yen (+8% year-over-year).

• Net profit for FY2024: 11.6 billion yen, down from 12.2 billion yen in FY2023.

• Operating margin improved to 7.0% from 6.4% year-over-year.

• Free cash flow increased to 17.1 billion yen; interest-bearing debt reduced by 27.5 billion yen.

• Dividend payout ratio for FY2024 was 34.9%, with a year-end dividend of 60 yen per share.

Outlook and guidance

• FY2025 net sales projected at 240 billion yen (+8% year-over-year); operating profit forecast at 18.5 billion yen (+18%).

• Net profit expected to rise to 13.0 billion yen (+12% year-over-year).

• Automotive, industrial/infrastructure, and aerospace segments expected to drive growth.

• Capital investments in new facilities to support growth, especially in 2H FY2025 and FY2026.

• Forecasts assume exchange rate of 140 yen per USD and do not fully reflect potential global tariff impacts.