ROHM (6963) Q4 2026 earnings summary

Executive summary

• FY2025 net sales rose 7.3% year-over-year to ¥481.1 billion, with operating profit turning positive at ¥10.8 billion, but net loss widened to ¥158.4 billion due to significant impairment losses in the SiC business.

• Structural reforms and cost reductions improved operating profit, aided by a change in depreciation method, despite external factors like Middle East tensions and gold price surges.

• Integration discussions with Toshiba and Mitsubishi Electric's semiconductor businesses are ongoing, aiming to strengthen global competitiveness.

• EBITDA increased 56.6% year-over-year to ¥67,890 million.

• Ordinary profit was ¥19,222 million, up from a loss last year, despite lower interest income and foreign exchange losses.

Financial highlights

• FY2025 operating profit increased 176.1% year-over-year, driven by higher sales and reduced fixed costs, despite increased variable costs from gold prices.

• Net loss of ¥158.4 billion in FY2025, mainly from impairment losses on SiC business fixed assets.

• FY2026 full-year plan targets net sales of ¥510.0 billion (+6.0% YoY), operating profit of ¥30.0 billion (5.9% margin), and net profit of ¥29.0 billion.

• Net loss per share: ¥410.46; equity ratio: 59.1%.

• Cash and cash equivalents at year-end: ¥428,714 million, up ¥193,747 million YoY.

Outlook and guidance

• FY2026 expects continued sales growth, especially in automotive (+5.6%), industrial (+5.0%), and communication (+12.2%) segments.

• Segment sales expected to rise in ICs (+7.6%) and discrete semiconductors (+8.3%), but decline in modules (-5.9%) and others (-11.7%).

• Inventory turnover targeted at six months or less by end of FY2026.

• Annual dividend of ¥50 per share planned for FY2026 and FY2027.

• Minimal impact expected from ongoing business integration talks with Toshiba and Mitsubishi Electric.