Musashi Seimitsu Industry (7220) Q4 2025 earnings summary

Executive summary

• FY2024 net sales totaled ¥347.1B, down 0.8% year-over-year; operating profit rose 7.3% to ¥19.7B; net income decreased 1.7% to ¥7.7B.

• Business foundation for electrification strengthened, with expanded orders in powertrain and linkage/suspension.

• New orders in India and China for EV-related components signal strategic expansion in electrification.

• Energy Solution and e-Mobility businesses entered growth stages, with new plant construction and mass production of e-Axle for 2-wheel EVs in India.

Financial highlights

• Operating profit margin improved to 5.7% from 5.3% year-over-year; ordinary profit rose 15.6% to ¥17.9B.

• Gross profit increased to ¥52.7B; EPS was ¥118.80 (down from ¥121.24).

• Free cash flow remained strong at ¥15.8B; cash and deposits at year-end were ¥34.1B, up ¥7.4B.

• Comprehensive income dropped sharply to ¥3.2B from ¥23.6B due to negative FX adjustments.

Outlook and guidance

• FY2025 net sales forecasted at ¥330.0B, a 5.0% decrease, mainly due to FX and volume effects.

• Operating profit expected to rise 6.5% to ¥21.0B; net income projected to jump 41.3% to ¥11.0B; EPS 167.91 yen.

• EBITDA forecasted at ¥40.0B; dividend maintained at ¥50/share; capex to increase to ¥30.0B for capacity expansion.

• Assumptions include FX rates of 140 yen/USD, 155 yen/EUR, and 19.5 yen/yuan.