ROHM (6963) Q4 2025 earnings summary

Executive summary

• FY2024 net sales declined 4.1% to ¥448.466 billion; operating loss was ¥40.061 billion and net loss attributable to owners of parent was ¥50.065 billion.

• Weak industrial and automotive markets, inventory adjustments, higher fixed costs and inventory write-downs drove the deterioration in results.

• FY2025 plan targets net sales of ¥440 billion and operating profit of ¥4 billion, with structural reforms intended to restore profitability and resilience.

Financial highlights

• Operating profit fell ¥83.3 billion year over year; material costs and inventory impacts were ¥43.4 billion adverse, while fixed costs rose ¥20.6 billion.

• FY2024 ordinary loss was ¥29.6 billion; EBITDA was ¥43.357 billion, down 62.4% year over year.

• Extraordinary losses included impairment charges and extra retirement payments; a ¥24.4 billion favorable tax impact partly offset the net loss.

• FY2024 dividend was ¥50 per share, with ¥50 per share planned for FY2025.

Outlook and guidance

• FY2025 guidance: net sales ¥440 billion, operating profit ¥4 billion, ordinary profit ¥11 billion, net profit ¥7 billion and EBITDA ¥65.6 billion; assumed USD/JPY rate ¥140.

• Planned ¥44 billion operating-profit improvement includes ¥25.5 billion from material-cost and inventory normalization, ¥12.9 billion from a depreciation-method change and ¥5 billion in organic fixed-cost reductions.

• FY2025 sales outlook includes automotive down 4.8% to ¥213 billion, industrial down 2.6%, communication down 18.5%, computer and storage down 5.5%, and consumer and others up over 10%.

• Inventory adjustment was expected to continue in 1H FY2025, with gradual improvement in 2H; structural measures are expected to improve profit by ¥27 billion in FY2025 and over ¥36 billion in FY2028.