NSK (6471) Q4 2026 earnings summary

Executive summary

• Sales and profits increased year-over-year, driven by structural improvements and the consolidation of the Steering Business (NS&C) as a subsidiary from September 2025.

• Net income attributable to owners rose 114.8% year-over-year to ¥22.867bn, exceeding revised forecasts despite higher restructuring costs.

• A memorandum of understanding was executed for business integration with NTN Corporation via a joint holding company, with completion targeted for October 2027; its effects are not included in the current medium-term plan.

Financial highlights

• FY2025 sales: ¥911.644bn (+14.4% YoY); operating income: ¥38.812bn (+36.4% YoY); net income: ¥22.867bn (+114.8% YoY).

• Operating income excluding one-time costs: ¥45.2bn (+24.1% YoY).

• ROE improved to 3.5% (+1.9pt YoY); operating income margin rose to 4.3% from 3.6%.

• FY2026 forecast: sales ¥1,000.0bn (+9.7% YoY), operating income ¥42.0bn (+8.2% YoY), net income ¥24.0bn (+5.0% YoY).

• Full-year dividend was ¥34.00 per share, with a payout ratio of 72.7%.

Outlook and guidance

• FY2026 expects continued sales and profit growth, with structural reform costs of ¥9.0bn factored in.

• Dividend forecast for FY2027 is maintained at ¥34.00 per share, with a minimum DOE target of 2.5%.

• Medium-Term Management Plan 2028 targets ROE of 8% and operating income of ¥75.0bn by FY2028, focusing on profitability and product portfolio transformation.