Parker (9845) Q4 2025 earnings summary

Executive summary

• Revenue increased 3.4% year-over-year to ¥70,014 million, with operating profit up 7.8% to ¥4,910 million.

• Ordinary profit declined 11.1% to ¥4,462 million due to foreign exchange losses, and net income attributable to shareholders fell 21.9% to ¥2,812 million, impacted by the absence of prior year’s negative goodwill gain.

• All major business segments except chemical products posted revenue growth; operating profit rose in most segments, with notable gains in machinery and industrial materials.

Financial highlights

• Gross margin improved as sales rose, but net margin declined due to lower non-operating income and higher extraordinary losses.

• Total assets increased to ¥70,853 million, and equity ratio improved to 64.2%.

• Cash and equivalents at year-end rose to ¥18,728 million, up ¥3,326 million year-over-year.

• Operating cash flow was ¥5,714 million, investment cash outflow was ¥1,379 million, and financing cash outflow was ¥1,446 million.

• EPS was ¥112.40, down from ¥143.99 the previous year.

Outlook and guidance

• For the next fiscal year, revenue is forecast to decrease 1.4% to ¥69,000 million, with operating profit down 2.3% to ¥4,800 million.

• Ordinary profit is expected to rise 12.0% to ¥5,000 million, and net income attributable to shareholders is projected to increase 20.9% to ¥3,400 million.

• Dividend per share is planned to increase to ¥28.00 for the next year.