Meidensha (6508) Q4 2026 earnings summary

Executive summary

• Net sales reached a record ¥326,194 million for FY2025, up 8.3% year-over-year, with operating income at a record ¥27,122 million, up 26.1%, and net income attributable to owners at ¥23,625 million, up 27.8%.

• Comprehensive income surged 157.1% year-over-year to ¥42,778 million, reflecting strong performance and improved market conditions.

• Growth was driven by robust demand in domestic electric power and infrastructure markets, as well as expanding overseas demand for environmentally friendly products.

• Interest-bearing debt decreased year-over-year, but free cash flow declined.

Financial highlights

• FY2025 orders: ¥358.2 billion, down ¥25.3 billion year-over-year; net sales: ¥326.1 billion, up ¥25.0 billion; operating income: ¥27.1 billion, up ¥5.6 billion; net income attributable to owners: ¥23.6 billion, up ¥5.1 billion.

• Operating margin improved to 8.3% from 7.1% year-over-year; return on equity increased to 15.1%.

• Shareholders’ equity ratio improved to 46.8% from 40.7%.

• Dividend per share increased to ¥157, with a payout ratio of 30.1%.

Outlook and guidance

• FY2026 forecasts: orders expected at ¥375.0 billion, net sales at ¥355.0 billion, and operating income at ¥29.0 billion.

• Medium-term plan targets net sales of ¥370.0 billion and operating income of ¥25.0 billion by FY2027.

• FY2027 forecast: net sales of ¥355,000 million (+8.8%), operating income of ¥29,000 million (+6.9%), and net income attributable to owners of ¥22,000 million (-6.9%).

• Capex and growth investment planned at ¥32.0 billion for FY2026; R&D expenses at ¥14,600 million for FY2027.