SEIKOH GIKEN (6834) Q4 2025 earnings summary

Executive summary

• Consolidated sales for the 2025/03 term reached ¥19,982 million, up 26.6% year-over-year, with significant growth in both Precision Machinery and Fiber Optic Components & Instrumental segments.

• Operating profit surged 167.7% to ¥2,817 million, and net profit rose 192.4% to ¥2,225 million compared to the previous year, driven by higher sales of high value-added products and extraordinary gains.

• Orders received increased 33.7% to ¥21,380 million, and order backlog rose 57.8% to ¥4,384 million year-over-year.

• Surpassed medium-term operating income target for FY2027 two years ahead of schedule; revised FY2027 target upward.

• Expanded business through acquisition of MG Co., Ltd. and investments in automation and smart manufacturing.

Financial highlights

• Operating profit margin improved to 14.1% from 6.7% year-over-year; ordinary profit margin at 14.9% (vs. 8.0%).

• Cash and cash equivalents at term-end increased to ¥7,320 million from ¥5,065 million.

• ROE rose to 8.1%, and net income to net sales ratio improved to 11.1%.

• Dividend per share increased to ¥65, with a payout ratio of 26.5%, and a forecast of ¥75 for next year.

• EPS reached ¥245.34, up from ¥83.42 the prior year.

Outlook and guidance

• FY2026/03 forecast: sales of ¥22,000 million, operating profit of ¥3,000 million, and net profit of ¥2,300 million.

• Revised medium-term targets: consolidated operating income target raised to ¥3.3 billion, sales target at ¥25 billion by FY2026.

• Demand for optical communication components and equipment expected to remain strong due to global data center construction and generative AI expansion.

• Automotive market outlook remains uncertain due to trade environment and geopolitical risks.

• Dividend per share planned to increase to ¥75 for FY2026/03.