SEIKO GROUP (8050) Q4 2025 earnings summary

Executive summary

• FY24 net sales rose 10.1% year-over-year to ¥304.7B, with operating profit up 44.1% to ¥21.2B and net income up 32.5% to ¥13.3B.

• Growth was driven by strong performance in the Watches and Emotional Value Solutions (EVS) segments, with notable gains in domestic and overseas markets.

• All business domains—EVS, Devices Solutions (DS), and Systems Solutions (SS)—achieved year-over-year revenue and profit growth.

• Comprehensive income declined 56.6% year-over-year to ¥10,477 million, mainly due to negative other comprehensive income.

• The company exceeded its SMILE145 mid-term plan targets and raised its FY26 operating profit goal to ¥25B.

Financial highlights

• Net sales: ¥304.7B (+10.1% YoY); operating profit: ¥21.2B (+44.1% YoY); net income: ¥13.3B (+32.5% YoY).

• Gross margin improved by 0.7pt to 45.0%; operating margin rose 1.7pt to 7.0%.

• Free cash flow increased to ¥23.4B, supported by strong operating cash flow of ¥32.6B.

• Basic earnings per share increased to ¥326.18 from ¥244.33 year-over-year.

• Dividend per share for FY24 increased to ¥100, with a forecast of ¥110 for FY26.

Outlook and guidance

• FY25 net sales forecasted at ¥312.0B (+2.4% YoY), operating profit at ¥22.5B (+5.9% YoY), and net income at ¥14.5B.

• US tariffs expected to increase costs by ¥2.0B in FY25, with mitigation measures planned.

• Segment reorganization will take effect in FY25, with Facility Solutions moving to SS.

• SMILE145 FY26 operating profit target raised to ¥25B, with a gross profit margin target of 46.8%.

• Annual dividend forecast for FY26 is ¥110 per share.