Musashi Seimitsu Industry (7220) Q4 2026 earnings summary

Executive summary

• FY2025/FY2026 net sales were ¥347.2 billion, flat year-over-year, with operating profit up 4.1% to ¥20.5 billion and ordinary profit up 12.5% to ¥20.2 billion, but net income dropped 83.8% to ¥1.2 billion due to extraordinary losses and restructuring costs.

• EBITDA rose slightly to ¥38.8 billion, and the operating profit margin improved to 5.9%.

• Comprehensive income surged to ¥12,352 million, driven by foreign currency translation gains.

• The company advanced business transformation, expanding in energy solutions and e-mobility, and opened new strategic offices and R&D centers.

• Segment performance was mixed, with Americas and Japan showing sales growth, while China and Europe declined.

Financial highlights

• Net sales: ¥347.2 billion (+0.0% YoY); Operating profit: ¥20.5 billion (+4.1% YoY); Ordinary profit: ¥20.2 billion (+12.5% YoY); Net income: ¥1.2 billion (–83.8% YoY).

• EBITDA: ¥38.8 billion (+0.7% YoY).

• Free cash flow for FY2025 was ¥5.1 billion.

• Net assets increased to ¥131.2 billion, with an equity ratio of 40.5%.

• Cash and cash equivalents at year-end were ¥33,894 million.

Outlook and guidance

• FY2026/FY2027 forecast: Net sales expected to decline 3.5% to ¥335.0 billion; operating profit to decrease 9.9% to ¥18.5 billion; ordinary profit to fall 20.9% to ¥16.0 billion.

• Net income is forecast to rebound to ¥6.5 billion (+414.2% YoY), reflecting normalization after one-time losses.

• Basic EPS forecast for FY2027 is ¥99.18.

• Investment planned to increase to ¥35.0 billion, with dividend maintained at ¥40 per share.

• Assumptions include FX rates of ¥150/USD, ¥175/EUR, and ¥21/CNY.