PIOLAX (5988) Q4 2025 earnings summary

Executive summary

• Management shifted focus from automobile production to new products and regions, introducing a business unit system and organizational reforms for flexibility amid industry changes like electrification and rising costs.

• Net sales for FY25 were ¥63,351 million, down 1.9% year-over-year, with operating profit declining 49.9% to ¥2,382 million and profit attributable to owners of parent dropping 55.3% to ¥1,792 million.

Financial highlights

• FY24 sales: ¥63.3 billion; FY25 forecast: ¥62.0 billion; FY30 target: ¥85.0 billion.

• Operating profit FY24: ¥2.3 billion; FY25 forecast: ¥2.1 billion; FY30 target: ¥9.0 billion.

• Net income FY24: ¥1.8 billion; FY25 forecast: ¥1.2 billion; FY30 target: ¥6.6 billion.

• Gross profit for FY2025 was ¥14,271 million, down from ¥16,263 million in FY2024.

• Basic earnings per share fell to ¥52.67 from ¥117.88 year-over-year.

Outlook and guidance

• FY25 guidance revised downward based on OEM trends; FY26 forecast: net sales ¥62,000 million, operating profit ¥2,100 million, profit attributable to owners of parent ¥1,200 million, and basic EPS ¥45.79.

• Dividend forecast for FY2026 is ¥92.00 per share, with a payout ratio of 200.9%.

• Targeting ROE of 8%+ by FY27, with focus on product development, organizational efficiency, and productivity improvements at the new Moka Plant.