OMRON (6645) Q4 2026 earnings summary

Executive summary

• Consolidated revenue and profit increased for FY2025, led by strong Industrial Automation (IAB) performance driven by AI-related demand and customer base recovery, despite margin pressures.

• FY2026 (and FY2027) outlook anticipates continued solid demand and higher sales and profits across all segments, with uncertainties from the Middle East and global economic conditions factored in.

• Major accounting changes include a switch from US GAAP to IFRS and reclassification of DMB as a discontinued operation.

• Dividend forecast raised to JPY 110 per share, up JPY 6 year-on-year, reflecting ongoing earnings growth.

Financial highlights

• FY2025 net revenue rose 7.3% year-on-year to JPY 767.4 billion; operating income up 12.1% to JPY 59.9 billion.

• Net income attributable to shareholders increased 75.1% to JPY 28.5 billion; EPS up 101.2 to JPY 188.02.

• FY2026/27 plan: net revenue JPY 820 billion (+6.9% YoY), operating income JPY 62 billion (+13.9% YoY), net income JPY 27.5 billion.

• ROE improved to 4.7% in FY2025; equity ratio projected to decrease slightly to 55.1%.

• Free cash flow turned negative in FY2025 due to higher investment cash flow.

Outlook and guidance

• FY2026/27 expects high growth in IAB, with strong AI and semiconductor demand, and solid performance in Healthcare, Social Systems, and Data Solutions.

• Net income from continuing operations projected to rise 15.2% to JPY 45 billion.

• Dividend payout to increase, targeting stable shareholder returns with DOE around 3%.

• One-time expenses from DMB spin-off included in net income forecast.