Kaga Electronics Co (8154) Q4 2025 earnings summary

Executive summary

• Net sales rose 0.9% to ¥547,779 million, supported by software, other businesses, EMS and amusement equipment, while information equipment sales declined and component performance faced inventory adjustments and customer loss.

• Operating income fell 8.7% to ¥23,601 million, pressured by higher personnel, logistics and other SG&A costs.

• Profit attributable to owners of parent declined 16.0% to ¥17,083 million, reflecting the absence of prior-year one-time gains.

Financial highlights

• Gross profit increased 1.7% to ¥71,665 million; gross margin improved 0.1 percentage points to 13.1%.

• SG&A expenses rose 7.8% to ¥48.1 billion; ordinary income fell 13.0% to ¥22,593 million, affected by higher foreign exchange losses.

• EPS was ¥325.08 versus ¥387.30; ROE declined to 10.8% from 14.5%.

• Total assets reached ¥305,671 million, net assets ¥166,379 million, and year-end cash and cash equivalents ¥72,681 million.

Outlook and guidance

• FY ending March 2026 forecast: net sales ¥530,000 million (-3.2%), operating income ¥23,000 million (-2.5%), profit attributable to owners of parent ¥16,500 million (-3.4%), and EPS ¥313.95.

• Annual dividend of ¥110 per share to be maintained; payout ratio target is 30–40%, with a 35.0% payout ratio planned for FY2026.

• Demand recovery is expected to remain moderate until the latter half of FY2026; the forecast assumes ¥140/USD and incorporates tariff impacts and potential demand declines.