SEIKO GROUP (8050) Q3 2026 earnings summary

Executive summary

• Net sales for Q1–Q3 FY25 reached ¥254.1 billion, up 9.3% year-over-year, with operating profit at ¥28.9 billion, up 39.2% year-over-year, and profit attributable to owners of parent up 58.8% to ¥20.5 billion, driven by strong performances in the EVS and DS domains.

• Comprehensive income increased 22.3% year-over-year to ¥23,430 million for the nine-month period.

• Both net sales and operating profit increased across all business domains, with particularly robust growth in the Watches segment.

• The annual dividend forecast was raised to ¥150 per share, and a 2-for-1 stock split was announced, effective April 1, 2026.

Financial highlights

• Gross profit for Q1–Q3 FY25 was ¥118.5 billion, up 11.9% year-over-year, with a gross margin of 46.7% (+1.1pt YoY).

• Ordinary profit rose 48.2% year-over-year to ¥30.8 billion.

• Basic earnings per share for the nine months was ¥502.58, up from ¥316.88 in the prior year.

• Q3 FY25 net sales were ¥93.5 billion (+14.8% YoY), and operating profit was ¥12.1 billion (+62.6% YoY).

• Free cash flow for Q1–Q3 FY25 improved to ¥22.6 billion, up from ¥17.6 billion in the prior year.

Outlook and guidance

• FY25 net sales forecast revised upward to ¥328.0 billion (+3.1% vs. previous forecast), and operating profit to ¥29.0 billion (+18.4% vs. previous forecast).

• Full-year net sales forecast for the fiscal year ending March 31, 2026, is ¥328,000 million, up 7.6% year-over-year.

• Operating profit is projected at ¥29,000 million, ordinary profit at ¥30,500 million, and profit attributable to owners of parent at ¥20,000 million, with basic EPS forecast at ¥489.41.

• Dividend forecast revised upward to ¥150 per share for the full year.

• Segment forecasts: Watches net sales expected at ¥198.0 billion, Devices Solutions at ¥64.0 billion, and Systems Solutions at ¥57.0 billion.