Sanyo Denki (6516) Q4 2026 earnings summary

Executive summary

• Achieved 9.7% year-over-year revenue growth to ¥107,346 million, driven by recovery in factory automation, semiconductor, and AI-related demand.

• Operating profit rose 37.2% year-over-year to ¥10,885 million, with margin improving from 8.1% to 10.1%.

• Orders received increased 30.1% year-over-year to ¥116,332 million, with a 25.0% rise in order backlog to ¥44,869 million.

• All business segments posted revenue growth, with Motion and Electronics showing the strongest recovery.

Financial highlights

• FY2025 revenue: ¥107.3B (+9.7% YoY); operating profit: ¥10.8B (+37.2% YoY); net income: ¥8.6B (+53.6% YoY).

• Gross margin improved to 27.9% from 25.7% year-over-year.

• FY2026/2027 forecast: revenue ¥128.8B (+20.0% YoY), operating profit ¥16.2B (+49.6% YoY), net income ¥12.0B (+38.6% YoY).

• ROE improved to 7.2% from 5.0% year-over-year, with a forecast to rise to 9.4%.

• Annual dividend set at ¥170 per share, targeting a 50% payout ratio, with a three-for-one stock split effective October 1, 2025.

Outlook and guidance

• FY2026/2027 expects significant growth, led by semiconductor market recovery and sustained AI demand.

• Accelerating global expansion, with new production capacity in Vietnam and enhanced procurement resilience.

• Monitoring risks from Middle East tensions and China’s rare earth export restrictions.