Johnson Electric (179) Q4 25/26 earnings summary

Executive summary

• Sales for FY25/26 were US$3.65 billion, nearly flat year-over-year, with net income of US$202 million, down from US$263 million.

• Adjusted net profit declined to US$221.9 million from US$274.0 million, mainly due to price adjustments, wage inflation, and higher operating expenses.

• Free cash flow from operations decreased to US$217.3 million from US$285.7 million.

• Cash reserves increased to US$902 million, and total debt to capital ratio improved to 10%.

• Adjusted EBITA fell 17% to US$287 million (7.9% of sales), with net profit attributable to shareholders down 23% to US$202 million.

Financial highlights

• Gross margin was 23.0%, down slightly from 23.1% year-over-year.

• EBITA fell to US$257.7 million from US$330.6 million; adjusted EBITA margin dropped to 7.9% from 9.4%.

• Diluted EPS was 21.59 US cents, down from 28.16 US cents.

• Capital expenditure rose to US$285 million (7.8% of sales), up from US$195.5 million (5.4% of sales).

• Final dividend of 44 HK cents per share recommended, total dividend for the year 61 HK cents.

Outlook and guidance

• Medium-term sales outlook projects growth to US$4.2–5.6 billion by FY30/31, with 3–9% CAGR, assuming no major disruptions.

• Management focuses on cost control, inflation management, and prudent financial risk amid ongoing geopolitical and macroeconomic uncertainty.

• Investments target high-growth areas: electric/hybrid vehicle thermal management, AI data center power, solid oxide fuel cells, and humanoid robotics.