Nihon Kohden Corporation (6849) Q4 2026 earnings summary

Executive summary

• FY2025 net sales rose 4.3% year-over-year to ¥235,099 million, driven by strong international growth, especially in North America, while domestic sales declined slightly.

• Operating income declined 9.5% to ¥18,745 million due to higher SG&A expenses, wage increases, R&D investments, and increased depreciation from M&A and capital investments.

• Ordinary income increased 10.7% to ¥22,544 million, aided by foreign exchange gains.

• Net income attributable to owners rose 3.0% to ¥14,513 million, despite extraordinary losses from early retirements.

• Comprehensive income grew 18.6% to ¥16,016 million.

Financial highlights

• Gross profit margin was 51.8% (down slightly YoY); gross profit reached ¥121,726 million.

• SG&A ratio increased to 43.8%.

• Overseas sales ratio rose to 38.6% from 35.6% in FY2024.

• Cash and cash equivalents at year-end: ¥45,637 million.

• Dividend per share increased to ¥32, with a payout ratio of 35.9%.

Outlook and guidance

• FY2026 forecast: net sales ¥232,500 million (-1.1% YoY), operating income ¥23,500 million (+25.4% YoY), ordinary income ¥23,500 million (+4.2% YoY), net income attributable to owners ¥15,000 million (+3.4% YoY).

• Domestic sales expected to decline 7.6% due to discontinuation of Abbott products; overseas sales projected to rise 9.2%, especially in North America and India.

• Gross margin expected to improve to 55.5% in FY2026, supported by favorable product mix and focus on in-house products.

• Company incorporates negative impacts from Middle East conflicts into FY2026 forecast.

• Target ROE for FY2026: 12%.