Nippon Seiki (7287) Q4 2026 earnings summary

Executive summary

• Revenue for FY ended March 31, 2026 rose 3.6% year-over-year to ¥327.9 billion, with operating profit up 21.3% to ¥11.6 billion, driven by strong motorcycle instrument sales in ASEAN, India, and South America, and increased information system services, offsetting weaker automobile instrument sales in China.

• Profit attributable to owners of parent increased 34.3% to ¥8.2 billion.

• Comprehensive income surged to ¥19,594 million from ¥1,351 million the prior year, aided by significant foreign exchange gains.

• Cost reduction initiatives contributed to higher operating profit.

• Automobile instrument sales declined due to weak demand in China and lower HUD sales in North America.

Financial highlights

• Q4 revenue increased 5.6% year-over-year; full-year revenue reached ¥327.9 billion, up 3.6%.

• Full-year operating profit rose 21.3% to ¥11.6 billion; profit attributable to owners increased 34.3% to ¥8.2 billion.

• Gross profit margin improved to 14.9% for the year.

• Basic earnings per share rose to ¥143.23 from ¥104.88 year-over-year.

• Cash and cash equivalents at year-end were ¥51,922 million, up from ¥35,305 million.

Outlook and guidance

• FY ending March 2027 revenue forecast is ¥320 billion (down 2.4%), operating profit ¥14 billion (up 20.4%), and profit attributable to owners of parent ¥10 billion (up 21.6%).

• Medium-term operating profit target revised down from ¥16.5 billion to ¥14 billion due to rising memory and oil prices and geopolitical risks.

• Dividend forecast for FY ending March 2027 is ¥90 per share, up from ¥80 per share.

• Impact of Toyodenso acquisition not yet reflected in forecasts.