Sanken Electric Co (6707) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, were ¥96,091 million, down 46.6% year-over-year, mainly due to the exclusion of Allegro MicroSystems and Polar Semiconductor as consolidated subsidiaries.

• Operating loss was ¥5,424 million, compared to an operating profit of ¥21,785 million in the prior year period.

• Profit attributable to owners of parent surged to ¥51,171 million, up 1,041.7% year-over-year, driven by extraordinary income from the partial sale of Allegro shares.

• The company is restructuring following the Noto Peninsula Earthquake, including closing the Shika Plant in April 2026.

Financial highlights

• Ordinary loss was ¥10,808 million, compared to an ordinary profit of ¥20,724 million a year earlier, impacted by foreign exchange losses and equity method accounting for Allegro.

• Gross profit fell to ¥19,990 million from ¥70,341 million year-over-year.

• Extraordinary income totaled ¥106,751 million, mainly from the gain on change in equity and sale of Allegro shares; extraordinary losses were ¥41,316 million, including losses related to PSL and disaster impacts.

• Comprehensive income was ¥24,964 million, up slightly from ¥24,118 million in the prior year.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2025: net sales ¥118,300 million (down 49.7% year-over-year), operating loss ¥5,600 million, ordinary loss ¥15,800 million, profit attributable to owners of parent ¥46,200 million, and basic EPS ¥1,913.15.

• No revision to the previously announced full-year forecast.

• FY2025 is positioned as a restructuring year, with profitability improvements targeted from FY2026.