NEC (6701) Q4 2025 earnings summary

Executive summary

• FY ended March 2025 revenue reached JPY 3,423.8 billion, with non-GAAP operating profit of JPY 311.3 billion, achieving midterm management plan targets a year early.

• Excluding the deconsolidation of JAE, revenue grew 5.3% year over year; non-GAAP OP increased by JPY 98.9 billion.

• Net profit attributable to owners increased 17.2% to JPY 175.2 billion; non-GAAP net profit rose 26.9% to JPY 225.7 billion.

• Cash flows from operating activities increased to JPY 344.4 billion; cash and cash equivalents at year-end were JPY 584.6 billion.

• A 5-for-1 share split was executed effective April 1, 2025; all per-share data reflect this adjustment.

Financial highlights

• Adjusted operating profit for FY March 2025 was JPY 287.2 billion, up from JPY 223.6 billion the previous year.

• Non-GAAP net profit was JPY 225.7 billion, up 47.9 billion year-over-year; non-GAAP EPS rose to 847 yen from 668 yen.

• EBITDA for FY25/3 was JPY 441.6 billion, up 62.1 billion year-over-year; EBITDA margin improved to 12.9%.

• Free cash flow improved to JPY 213.2 billion, up JPY 18 billion year-over-year, driven by working capital improvements.

• Dividend for FY25 was JPY 140 per share, with a payout ratio of 21.3%.

Outlook and guidance

• FY March 2026 forecast: revenue of JPY 3,360.0 billion, adjusted OP of JPY 310 billion, non-GAAP OP of JPY 320 billion.

• Non-GAAP net profit projected at JPY 230.0 billion; free cash flow forecasted at JPY 290.0 billion.

• Dividend per share to increase to 32 yen post-stock split.

• Ongoing structural reforms and macroeconomic risks are factored into guidance.

• Non-GAAP EPS forecasted at JPY 172.58 for FY26.