Sanken Electric Co (6707) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025, were ¥59,157 million, a 38.4% decrease year-over-year, mainly due to the exclusion of Allegro MicroSystems, Inc. from consolidation and challenging market conditions.

• Operating loss for the period was ¥6.0 billion, reflecting production adjustments and inventory buildup ahead of a back-end reorganization, while ordinary loss improved to ¥3,047 million from ¥10,808 million.

• Profit attributable to owners of parent was a loss of ¥3,518 million, impacted by extraordinary losses and foreign exchange effects.

• Comprehensive income was ¥96 million, down from ¥24,964 million year-over-year.

• Major share repurchase of 4.17 million shares (16.6% of issued shares) completed and cancelled, totaling ¥29,900 million.

Financial highlights

• Gross profit for the period was ¥7,358 million, down from ¥19,990 million year-over-year.

• Extraordinary income included a ¥1.2 billion gain on sale of non-current assets and a ¥1.9 billion gain on change in equity, while extraordinary losses included ¥2,415 million in extra retirement payments.

• Net assets decreased to ¥124,554 million from ¥147,928 million at the previous fiscal year-end.

• Basic earnings per share for the period was negative ¥452.29.

• Foreign exchange losses totaled ¥1.1 billion.

Outlook and guidance

• Full-year net sales forecast is ¥78,800 million, a 35.2% year-over-year decrease, with Q4 net sales expected to increase slightly over Q3 due to seasonality and exchange rate impacts.

• Operating profit is forecasted to decline in Q4 due to continued production adjustments, with a full-year operating loss forecast of ¥6,000 million and loss attributable to owners of parent at ¥9,700 million.

• No dividend is planned for the fiscal year ending March 31, 2026.