JVCKENWOOD (6632) Q4 2026 earnings summary

Executive summary

• Revenue for FYE3/'26 declined 3.6% YoY to ¥356.9B, mainly due to component supply shortages and U.S. tariffs impacting key business sectors.

• Core operating income fell 17.5% YoY to ¥20.9B, with profit attributable to owners down 17.2% to ¥16.8B.

• Structural reforms, including withdrawal from healthcare and professional camera businesses, were completed.

• All major profit metrics decreased year-over-year, reflecting operational and external challenges.

Financial highlights

• Operating profit decreased 5.7% YoY to ¥20.5B; gross profit margin was 30.9%, and operating profit margin was 5.8%.

• Profit before tax dropped 7.8% to ¥21.7B; basic EPS was ¥115.21, down from ¥135.17.

• EBITDA was ¥41.7B, EBITDA margin 11.7%.

• Operating cash flow increased to ¥33.8B; free cash flow was ¥11.5B.

• Total assets rose to ¥347.6B, and equity attributable to owners increased to ¥143.8B.

Outlook and guidance

• For FYE3/'27, revenue is forecast at ¥364.0B (+2.0% YoY), core operating income at ¥23.4B (+12.1% YoY).

• Profit attributable to owners projected to decrease 10.6% to ¥15.0B; annual dividend forecasted at ¥20 per share.

• S&S expects recovery in Communications Systems; M&T anticipates strong domestic sales despite memory supply risks.

• Continued monitoring of geopolitical risks, U.S. government budget delays, and supply chain disruptions.