Sanken Electric Co (6707) Q4 2026 earnings summary

Executive summary

• FY March 2026 net sales declined 34.1% year-over-year to ¥80.2 billion, mainly due to reduced demand in white goods, production adjustments, and the exclusion of Allegro MicroSystems from consolidation.

• Operating loss for the year was ¥4,728 million, with a net loss attributable to owners of parent of ¥9,798 million.

• Extraordinary losses included impairment, severance costs from plant closures, and ¥2,446 million in extra retirement payments, partially offset by asset sales and equity changes.

• Share buyback of 4.17 million shares (16.6% of issued shares) was completed and cancelled, totaling ¥29,900 million.

Financial highlights

• Net sales dropped from ¥121.6 billion to ¥80.2 billion year-over-year, with Sanken Core sales down 12.7%.

• Gross profit fell to ¥7,500 million from ¥24,935 million year-over-year.

• Basic earnings per share fell to -472.88 yen.

• Equity ratio at year-end was 50.1%, down from 56.9% the previous year.

• Cash and cash equivalents at year-end were ¥34,840 million, down from ¥60,744 million.

Outlook and guidance

• FY March 2027 net sales forecasted to rise 7.9% to ¥86.5 billion, with operating profit expected to recover to ¥1.4 billion and net profit to ¥1 billion.

• Profitability improvement expected from cost reductions, production reorganization, and higher sales prices.

• First half of FY2027 expected to remain negative, with recovery anticipated in the second half.

• Special redundancy costs of ¥0.7 billion to be recorded in FY March 2027 due to voluntary retirement at a subsidiary.

• Dividend for FY2027 undecided, pending profitability improvement.