Nifco (7988) Q4 2025 earnings summary

Executive summary

• Achieved record-high operating profit margin of 13.9% in FY2024, despite lower sales and the sale of German subsidiaries.

• Net income reached its highest level, aided by one-time gains from sale of cross-shareholdings and tax effects, surging 145.3% year-over-year to 44.7bn yen.

• Comprehensive income increased 77.8% to 54.2bn yen.

• FY2025 targets further profit growth, aiming for OP margin above 14% and increased dividends.

• Mid-term plan (FY2025–FY2027) targets sales of 369.0bn yen, OP of 53.4bn yen, ROE 12–14%, and ROIC 18–20%.

Financial highlights

• FY2024 net sales: 353.0bn yen, down 5% year-over-year; operating profit: 49.2bn yen, up 12%.

• OP margin improved to 13.9% from 11.8% year-over-year.

• Free cash flow was 30.4bn yen, down from 39.1bn yen in the prior year.

• Net assets ratio rose to 72.4% from 64.1% year-over-year.

• Dividend per share for FY2024 was 75 yen, up from 64 yen in FY2023.

Outlook and guidance

• FY2025 forecast: net sales 348.0bn yen (-1.4%), operating profit 49.5bn yen (+0.06%), OP margin 14.2%.

• Net income expected at 30.6bn yen (-31.5% year-over-year), EPS 315.76 yen.

• Dividend per share to rise by 5 yen to 80 yen; total payout ratio targeted above 45%.

• FX assumption: 1USD = 145 yen; tariff impacts not included due to calculation difficulty.