NSK (6471) Q4 2026 earnings summary

Executive summary

• Sales and profits increased year-over-year, driven by structural reforms, favorable exchange rates, and the consolidation of the Steering Business as a subsidiary from September 2025.

• Net income attributable to owners rose 114.8% year-over-year to ¥22,867 million, exceeding revised forecasts despite higher restructuring costs.

• A memorandum of understanding was signed for business integration with NTN Corporation via a joint holding company, with completion targeted for October 2027; effects are not yet reflected in current plans.

• FY 2026 forecast: sales of ¥1 trillion (+9.7% YoY), operating income of ¥42 billion (+8.2% YoY), and net income of ¥24 billion (+5.0% YoY), with continued structural reforms and stable dividends.

• Medium-Term Management Plan 2028 targets operating income of ¥75 billion and ROE of 8%.

Financial highlights

• FY2025 sales: ¥911.6 billion (+14.4% YoY); operating income: ¥38.8 billion (+36.4% YoY); net income: ¥22.9 billion (+84.6% YoY); operating income margin improved to 4.3%.

• Operating income excluding one-time costs: ¥45.2 billion (+24.1% YoY); one-time structural reform costs of ¥4.3 billion in FY2025.

• FY2026 forecast includes ¥9 billion in restructuring costs; dividend policy maintained at ¥34 per share.

• Basic earnings per share more than doubled to ¥46.75; ROE improved to 3.5% (+1.9pt YoY); ROIC to 2.6% (+1.1pt YoY).

• Total assets increased to ¥1,239,769 million; total equity rose to ¥692,135 million.

Outlook and guidance

• FY2026 expects continued sales and profit growth, with structural reform costs of ¥9.0 billion factored in and stable global vehicle production.

• Dividend forecast for FY2026/FY2027 is maintained at ¥34 per share, with a minimum DOE target of 2.5%.

• Medium-term plan aims for operating income of ¥75 billion, ROE of 8%, and double-digit profitability by 2036.

• Cost inflation expected to increase by ¥2 billion, with plans to pass costs to sales prices.

• Structural reforms to continue in Europe and Japan.