Mitsui High-tec (6966) Q4 2025 earnings summary

Executive summary

• Net sales rose 9.7% year-over-year to ¥214,890 million, driven by strong electric vehicle-related demand, while operating profit declined 11.6% to ¥16,017 million and net profit attributable to owners fell 21.4% to ¥12,219 million due to cost increases and FX impacts.

• EBITDA increased 2.8% to ¥30,536 million, with an EBITDA margin of 14.2%.

• Q4 FY2025 saw sequential improvements: net sales up 4.5% and operating profit up 25.9% from Q3.

• The economic environment showed gradual recovery, but uncertainty persisted due to US policy trends, a slowing Chinese economy, and geopolitical instability.

Financial highlights

• Operating profit margin decreased from 9.3% to 7.5% year-over-year; ordinary profit dropped 22.0% to ¥16,943 million.

• Capital investment dropped 33.8% to ¥24,856 million; depreciation rose 25.5% to ¥14,518 million.

• Free cash flow improved to -¥2,144 million from -¥4,717 million year-over-year.

• Equity ratio remained stable at 49.2%; total assets increased to ¥223,698 million.

• Basic earnings per share was ¥66.86, down from ¥85.06, reflecting a 5-for-1 stock split.

Outlook and guidance

• FY2026 net sales forecasted to grow 7.0% to ¥230,000 million, but operating profit expected to fall 18.8% to ¥13,000 million; net profit projected to decrease 26.3% to ¥9,000 million.

• EBITDA to decline 6.7% to ¥28,500 million; EPS forecast at ¥49.25.

• Capital investment planned to surge 81.0% to ¥45,000 million in FY2026, focused on EV-related production.

• Dividend forecast for FY2026 is ¥18 per share, maintaining a DOE target of 3.0% or more.

• Depreciation method will shift to straight-line, reducing depreciation by ¥2.7 billion in FY2026.