Meiji Electric Industries Co (3388) Q4 2025 earnings summary

Executive summary

• FY25 revenue rose 5.5% YoY to ¥78,672 million; operating profit increased 13.1% to ¥3,294 million and ordinary profit rose 7.9% to ¥3,596 million.

• Net income attributable to owners of parent was ¥2,435 million, nearly flat YoY; comprehensive income declined to ¥2,538 million from ¥4,217 million.

• FY26 guidance targets continued growth, with revenue of ¥82,500 million and operating profit of ¥3,730 million.

• FY26 growth outlook is supported by labor-saving and productivity investment amid a shrinking workforce.

Financial highlights

• FY25 revenue exceeded the prior forecast by 1.5% and operating profit by 9.4%.

• Gross profit rose to ¥11,794 million from ¥10,992 million; consolidated gross margin increased to 15.0% from 14.7%, partly offset by higher SG&A.

• Year-end cash and cash equivalents were ¥7,905 million, up from ¥7,332 million; net assets were ¥34,770 million and the equity-to-asset ratio was 63.4%.

• Operating margin improved to 4.2% from 3.9%; ROE declined to 7.3% from 7.8%.

• Annual EPS was ¥191.34 versus ¥191.46 in FY24.

Outlook and guidance

• FY26 forecast: revenue ¥82,500 million (+4.9%), operating profit ¥3,730 million (+13.2%), ordinary profit ¥3,990 million (+10.9%), and net income ¥2,800 million (+15.0%).

• FY26 operating margin is forecast at 4.5%, up 0.3pt YoY; ROE at 8.0%, up 0.7pt; basic EPS at ¥219.87.

• Interim FY26 revenue is forecast at ¥40,600 million, up 18.8% YoY.

• Revised FY27 plan targets revenue of ¥90,000 million, operating profit of ¥4,570 million, operating margin of 5.1%, net income of ¥3,400 million, and ROE of 9.2%.