Oki Electric Industry (6703) Q4 2025 earnings summary

Executive summary

• Net sales rose 7.3% year-over-year to ¥452.5 billion, the highest in five years, driven by strong Public Solutions, Enterprise Solutions, and Component Products, offsetting weak EMS demand.

• Operating income was ¥18.6 billion, nearly flat year-over-year, as higher sales were offset by increased personnel and fixed costs.

• Profit attributable to owners of parent dropped 51.3% year-over-year to ¥12.5 billion due to one-time factors and a high prior-year base.

• ROE improved to 8.7%, and the equity ratio reached 35.4%, reflecting a stronger financial foundation.

• Dividend per share increased to ¥45 in FY2024 and is projected to rise to ¥50 in FY2025, marking three consecutive years of increases.

Financial highlights

• Gross profit increased to ¥113.4 billion from ¥105.4 billion year-over-year.

• Operating margin was 4.1%, slightly down from 4.4% the previous year.

• Comprehensive income fell sharply to ¥7.0 billion from ¥43.8 billion year-over-year.

• Cash and cash equivalents at year-end were ¥36.2 billion, up from ¥34.4 billion.

• Equity ratio improved by 2.1 points to 35.4%.

Outlook and guidance

• FY2025 net sales are forecast at ¥450.0 billion, a slight decrease of 1%.

• Operating income is projected to rise 2% to ¥19.0 billion, with a 4.2% margin.

• Profit attributable to owners of parent is expected to increase 12% to ¥14.0 billion.

• ROE is forecast to improve to 9.4%, and the equity ratio to 37%.

• Dividend per share is expected to increase to ¥50.