ROHM (6963) Q4 2025 earnings summary

Executive summary

• FY2024 net sales declined 4.1% year-over-year to ¥448.4 billion, mainly due to weak industrial and automotive markets and inventory adjustments, with operating profit at -¥40.0 billion and net profit at -¥50.0 billion.

• Sales outside Japan increased to 47.7%, but overall profitability and asset efficiency deteriorated due to delayed market response and excessive capital investment.

• Structural reforms included withdrawal from the silicon wafer business, workforce reduction, and limited capital expenditure in response to EV market stagnation.

• Losses were impacted by impairment charges and extra retirement payments.

• EBITDA for FY2024 was ¥43.3 billion, down 41.4% YoY.

Financial highlights

• FY2024 operating profit dropped by ¥83.3 billion YoY, mainly due to lower sales, increased costs, and inventory write-downs.

• Gross margin dropped sharply as cost of sales rose 16.2% YoY, outpacing the 4.1% decline in net sales.

• Net assets decreased by ¥78.4 billion to ¥889.7 billion; equity ratio fell to 61.7% from 65.3%.

• Dividend maintained at ¥50 per share for FY2024 and planned for FY2025, with a payout ratio target of 30%.

• Capital expenditures were ¥79.9 billion for FY2024, with FY2025 plan at ¥45.2 billion, reflecting stricter investment discipline.

Outlook and guidance

• FY2025/2026 guidance expects net sales of ¥440.0 billion (down 1.9% YoY), operating profit recovery to ¥4.0 billion, and profit attributable to owners of parent of ¥7.0 billion.

• EBITDA expected to rise 51.3% to ¥65.6 billion.

• Depreciation method change to straight-line will reduce depreciation by ¥14.3 billion and boost profits.

• Inventory adjustment expected to continue in 1H FY2025, with gradual improvement in 2H.

• U.S. tariffs and global economic uncertainty present downside risks.