Macnica Holdings (3132) Q4 2025 earnings summary

Executive summary

• FY2024 consolidated net sales reached ¥1,034.2 billion, up 0.5% year-over-year, driven by network segment growth and new consolidations, despite a decline in high-margin industrial equipment sales.

• Operating income declined 38% year-over-year to ¥39.6 billion, and net income attributable to owners of parent fell 53% to ¥25.3 billion, reflecting higher personnel costs and business mix changes.

• The company executed a 1-for-3 share split in October 2024 and consolidated Glosel Co., Ltd. and Navya Mobility SAS into its balance sheet.

Financial highlights

• Semiconductor business net sales decreased 3% year-over-year to ¥880.3 billion, with a significant drop in profit due to sluggish demand in industrial equipment.

• Network business net sales rose 27% year-over-year to ¥153.9 billion, driven by strong demand for security-related products and overseas expansion.

• Operating income for the semiconductor business dropped 54% year-over-year to ¥26.3 billion, while network business operating income surged 88% to ¥13.3 billion.

• Cash flow from operating activities was ¥24.2 billion, down 39% year-over-year.

• Gross profit decreased to ¥121.3 billion from ¥129.6 billion year-over-year.

Outlook and guidance

• FY2025 guidance projects consolidated net sales of ¥1,050 billion (+2% year-over-year) and operating income of ¥42 billion (+6%).

• ICs, Electronic Devices & Others expected to remain in adjustment phase in H1 FY2025; cybersecurity business expected to maintain strong performance.

• Assumes USD/JPY rate of 140 yen and limited direct impact from US tariff measures.

• Dividend forecast for FY2025 is 70 yen per share, with a payout ratio of 46%.