Koito Manufacturing (7276) Q4 2026 earnings summary

Executive summary

• FY25 net sales increased year-over-year to ¥947.6 billion, driven by new orders and higher sales of HEV models globally, despite sluggish consumption and uncertainties.

• Operating and ordinary profit rose year-over-year, aided by productivity improvements, rationalization, and growth in the Americas and China.

• Net income declined 64% year-over-year to ¥16.5 billion due to impairment losses in the LiDAR business and China operations.

• FY26 net sales are forecasted to decrease 1.5% to ¥933.0 billion due to reduced production at major customers, but operating profit is expected to rise with further rationalization and lower LiDAR-related expenses.

• Annual dividend for FY26 planned at ¥58 per share, up ¥2 from the previous year.

Financial highlights

• FY25 consolidated net sales: ¥947.6B, up 3% YoY; operating profit: ¥51.4B, up 15%; net income: ¥16.5B, down 64%.

• Gross profit increased to ¥111.5B (+15% YoY); operating profit margin improved to 5.4% from 4.9%.

• Ordinary profit rose 19.6% YoY to ¥58.8B; comprehensive income more than doubled to ¥63.5B.

• FY26 forecast: net sales ¥933.0B (-2% YoY), operating profit ¥60.0B (+17% YoY), net income ¥39.5B (+139% YoY).

• Cash and cash equivalents at year-end increased to ¥125.2B.

Outlook and guidance

• FY26 operating profit margin targeted at 6.4%, above the previously announced 6.0%.

• LiDAR business losses expected to be substantially reduced in FY26 due to restructuring and focus shift.

• Global automobile production volume forecasted to decline 1% in FY26, with notable decreases in North America and China.

• Profit attributable to owners of parent expected to rebound 138.8% to ¥39.5B, reflecting recovery from prior year’s extraordinary losses.

• Annual dividend for FY26 planned at ¥58 per share, up ¥2 from the previous year.