Meidensha (6508) Q4 2025 earnings summary

Executive summary

• Orders, net sales, and operating income reached record highs for FY2024, with net sales up 4.6% to ¥301,101 million, operating income up 69.0% to ¥21,512 million, and net income attributable to owners up 65.0% to ¥18,487 million.

• Overseas sales and income rose sharply due to increased demand and improved profitability in Singapore, Germany, and India, while domestic growth was driven by power company projects and infrastructure investments.

• All major business segments except Mobility & Electrical Components posted higher sales and operating income, with record highs in Power Infrastructure and Field Service Engineering.

• The company completed its Medium-Term Management Plan 2024, focusing on environmental products, overseas business, and sustainability initiatives.

Financial highlights

• Orders: ¥383.5 billion, up ¥54.2 billion YoY and ¥73.5 billion above initial forecasts; net sales: ¥301.1 billion, up ¥13.2 billion YoY; operating income: ¥21.5 billion, up ¥8.7 billion YoY and ¥6.5 billion above initial forecasts.

• Net income attributable to owners: ¥18.5 billion, up ¥7.3 billion YoY; net income per share rose from ¥247.00 to ¥407.51 YoY.

• Gross profit improved from ¥68,993 million to ¥81,592 million YoY.

• Free cash flow increased to ¥26.4 billion; cash and cash equivalents at year-end rose by ¥11,867 million to ¥29,091 million.

• Interest-bearing debt decreased by ¥10.1 billion YoY to ¥44.6 billion.

Outlook and guidance

• FY2025 forecasts: Orders ¥340.0 billion, net sales ¥335.0 billion, operating income ¥20.0 billion, net income ¥14.0 billion; operating income expected to decrease by ¥1.5 billion YoY due to higher personnel expenses and fewer overseas projects.

• FY2026 forecast: net sales ¥335,000 million, operating income ¥20,000 million, net income attributable to owners ¥14,000 million, all expected to decrease from FY2025 results.

• Order backlog remains high at ¥374.4 billion as of March 31, 2025.

• Orders are forecast to decline to ¥340,000 million in FY2026.

• Dividends for FY2025 set at ¥123 per share; FY2026 dividend yet to be determined.