Sanwa (5929) Q4 2025 earnings summary

Executive summary

• FY2024 saw record-high sales and operating profit, driven by strong performance in Japan and North America, while Europe faced challenges and Asia had mixed results, with yen depreciation also contributing.

• All key financial indicators significantly exceeded the Mid-Term Management Plan 2024 targets, with robust growth in core businesses and successful price pass-throughs.

• The company completed the final year of its Mid-Term Management Plan 2024 and launched the new Mid-Term Management Plan 2027, focusing on strengthening global leadership in high-performance and smart entrance solutions and sustainability.

Financial highlights

• Net sales for FY2024 reached ¥662.4 billion, up 8.4% year-over-year.

• Operating profit hit ¥80.5 billion, a 23.2% increase year-over-year, with a margin of 12.2%.

• Net profit attributable to owners was ¥57.5 billion, up 33.0% year-over-year.

• ROE reached 19.0% and ROIC 18.5% for FY2024.

• Cash and cash equivalents at year-end were ¥103,114 million, up ¥8,919 million from the previous year.

Outlook and guidance

• FY2025 net sales are forecast at ¥654.0 billion, a slight decrease due to forex impact, but up 2.3% on a constant currency basis.

• Operating profit is projected at ¥81.0 billion, with a margin of 12.4%.

• Net profit attributable to owners is forecast at ¥58.0 billion.

• Annual dividend per share for FY2024 was ¥106, with a forecast of ¥124 for FY2025, reflecting a new DOE policy of approximately 8%.

• The Mid-Term Management Plan 2027 targets consolidated net sales of ¥750.0 billion and operating profit of ¥95.0 billion (¥100.0 billion before goodwill amortization).