Nippon Gear (6356) Q4 2025 earnings summary

Executive summary

• Revenue for the year ended March 2025 was ¥9,555 million, a 0.7% decrease year-over-year, while net income rose 0.7% to ¥1,550 million.

• Operating profit declined 1.0% to ¥2,105 million, and ordinary profit was nearly flat at ¥2,152 million.

• Orders increased 2.0% year-over-year, but sales declined due to lower performance in several product categories.

Financial highlights

• Gross margin was 44.7%, with operating margin at 22.0% and net margin at 16.2% for the period.

• Cash and equivalents at year-end were ¥4,496 million, up slightly from the previous year.

• Equity ratio improved to 82.5% from 75.6% year-over-year.

• EPS was ¥108.90, up from ¥108.13 the previous year.

Outlook and guidance

• FY2026 revenue is forecast at ¥9,300 million (down 2.7% year-over-year), with net income projected at ¥1,480 million (down 4.5%).

• The company aims to expand overseas customers and invest in new product development and facility upgrades.

• R&D and depreciation expenses are expected to rise due to ongoing investments.