Noritz (5943) Q4 2025 earnings summary

Executive summary

• Net sales for fiscal 2025 were ¥202.0 billion, down 0.1% year-over-year, with operating income up 79.5% to ¥4.3 billion and net income attributable to shareholders down 23.4% to ¥3.3 billion.

• Domestic profit rose due to price revisions, growth in eco-friendly and premium products, and cost improvements.

• Overseas sales declined, mainly from weak market conditions in China, but profit increased due to recovery in North America, strong performance in Australia, and cost controls.

• The company advanced its Medium-Term Management Plan, focusing on business structure reform and reducing reliance on the Chinese market.

Financial highlights

• Net sales: ¥202.0bn, down ¥0.1bn year-over-year; Operating income: ¥4.3bn, up ¥1.9bn (+79.5% YoY); Net income attributable to shareholders: ¥3.3bn, down ¥1.0bn (-23.4% YoY).

• Domestic sales: ¥136.7bn (+2.4% YoY); Overseas sales: ¥65.3bn (-5.0% YoY).

• Operating margin improved to 2.1% from 1.2% year-over-year.

• Net cash provided by operating activities increased to ¥9.96bn; cash and cash equivalents at year-end were ¥22.85bn.

• Total assets rose to ¥237.1bn, and net assets increased to ¥145.0bn.

Outlook and guidance

• FY2026 targets: Net sales ¥210.0bn, operating income ¥4.5bn, net income ¥8.6bn, ROE over 6%.

• Domestic business net sales target: ¥140.0bn; overseas business: ¥70.0bn.

• Focus on expanding high value-added and eco-friendly products, cost improvements, and overseas market stabilization.

• The final year of the Medium-Term Management Plan will emphasize business portfolio transformation, strategic investments, and sustainability.