Sanken Electric Co (6707) Q4 2025 earnings summary

Executive summary

• FY2024 saw major restructuring, including the removal of Allegro and Polar Semiconductor from consolidation, and a significant gain from the sale of Allegro shares, resulting in a one-time boost to net income.

• Sanken Core sales grew 14.7% year-over-year to 90.0 billion yen, while overall sales declined due to divestitures.

• Operating profit for Sanken Core improved to 2.0 billion yen, but consolidated operating profit was negative due to adjustments and losses from affiliates.

• Extraordinary gains from asset sales and equity changes drove net income to 50.9 billion yen, reversing a prior year loss.

• Share repurchase program initiated as a return to shareholders.

Financial highlights

• FY2024 consolidated sales were 121.6 billion yen, down 48.3% year-over-year due to business divestitures and exclusion of Allegro.

• Operating loss was 3.8 billion yen, compared to a prior year profit.

• Net income surged to 50.9 billion yen, mainly from a 129.1 billion yen gain on Allegro share sale and other extraordinary items.

• Equity ratio improved to 56.9% (from 31.1%), and D/E ratio dropped to 0.4x (from 1.2x) at year-end.

• Comprehensive income was 22.1 billion yen, down 4.6% year-over-year.

Outlook and guidance

• FY2025/FY2026 sales are forecast at 89.2 billion yen, a 2.2% decrease year-over-year, with operating profit projected at 0.4 billion yen.

• Net income is expected to be -4.4 billion yen, reflecting a 2.2 billion yen extraordinary loss from voluntary retirement.

• Dividend payments remain suspended, with resumption planned for FY2026/FY2027 depending on profitability.

• Focus on profitability improvement, cost control, and new product sales under the 24 Medium-Term Plan.

• FX rate assumption for FY2025 is 145 yen/USD; each 1 yen change impacts sales by 0.4 billion yen and operating profit by 0.2 billion yen.