Nittoseiko Co (5957) Q4 2025 earnings summary

Executive summary

• Net sales for FY2025 reached ¥50,238 million, up 6.7% year-over-year, with operating income at ¥3,431 million, a 3.2% increase from the previous year.

• Profit attributable to owners of parent was ¥2,152 million, a slight decrease from the previous year.

• Growth was driven by the Fastener segment, especially from the Indian subsidiary and strong demand for precision screws and CASE-related products.

• Overseas sales accounted for 30.8% of total sales, with notable growth in South Asia and Southeast Asia.

• The company is implementing a new Mid-Term Management Plan (2026–2028) focused on profitability, sustainability, and innovation.

Financial highlights

• Gross profit rose to ¥12,045 million, up 7.2% year-over-year.

• Operating margin was 6.8%, and ordinary profit margin was 6.6% for the year.

• Net assets rose to ¥41,002 million, with an equity ratio of 63.0%.

• Free cash flow decreased significantly to ¥197 million, mainly due to the acquisition of the Indian subsidiary.

• Annual dividend per share increased to ¥23.00, with a payout ratio of 38.8%.

Outlook and guidance

• FY2026 net sales are forecast at ¥52,000 million (+3.5% YoY), with operating profit projected at ¥3,800 million (+10.7% YoY).

• Profit attributable to owners of parent is forecast at ¥2,300 million, and earnings per share at ¥63.36.

• The company targets operating income of ¥6 billion and ROE over 9% by 2028.

• Strategic focus includes expanding overseas markets, especially India and Europe, and strengthening CASE-related and environmental businesses.