Kaga Electronics Co (8154) Q4 2025 earnings summary

Executive summary

• Net sales rose 0.9% year-over-year to ¥547.7 billion, driven by robust EMS, amusement equipment, software, and other business segments, offsetting declines in electronic components and information equipment due to inventory adjustments and customer loss.

• Operating profit declined 8.7% year-over-year to ¥23.6 billion, impacted by higher personnel and logistics costs and increased SG&A expenses.

• Net profit attributable to owners of parent fell 16.0% year-over-year to ¥17.0 billion, mainly due to the absence of prior year’s one-time gains from securities sales and negative goodwill.

Financial highlights

• Gross profit increased 1.7% year-over-year to ¥71.7 billion, with gross margin improving to 13.1%.

• EPS was ¥325.08, down from ¥387.30 the previous year; ROE declined to 10.8% from 14.5%.

• Total assets grew to ¥305.7 billion, net assets to ¥166.4 billion, and equity ratio improved to 54.4%.

• Net cash increased to ¥80.1 billion; net D/E ratio at -0.28, indicating strong financial stability.

• Inventory turnover days ranged from 34.5 to 58.0 days; inventory reduced by ¥2.9 billion to ¥51.7 billion.

Outlook and guidance

• FY2026/3 forecast: net sales of ¥530.0 billion (down 3.2%), operating income of ¥23.0 billion (down 2.5%), and net profit of ¥16.5 billion (down 3.4%), reflecting continued inventory adjustments, a stronger yen assumption, and global uncertainties.

• Full-year dividend to be maintained at ¥110 per share, with a payout ratio target of 30–40% and DOE of 4%.

• ROE target set at 12% or higher under the new mid-term plan, with focus on growth investments, M&A, and shareholder returns.