SEIKOH GIKEN (6834) Q4 2026 earnings summary

Executive summary

• Achieved record net sales of ¥30,087 million, up 50.6% year-over-year, and record operating profit of ¥7,733 million, up 174.5% year-over-year, surpassing medium-term management targets a year ahead of schedule.

• Growth driven by strong demand in optical products for data centers, full-year consolidation of MG Co., Ltd., and robust performance in Precision Machinery and Fiber Optic Components segments.

• Significant improvement in cost of sales ratio due to higher sales of value-added products.

• Continued focus on maximizing economic value, accelerating new product development, and reinforcing sustainability initiatives.

Financial highlights

• Consolidated sales rose 50.6% year-over-year to ¥30,087 million; operating profit up 174.5% to ¥7,733 million; net profit up 179.1% to ¥6,210 million.

• Orders received increased 65.2% to ¥35,316 million; order backlog up 119.2% to ¥9,613 million.

• R&D expenses grew 33.1% to ¥666 million; capital investment up 79.5% to ¥1,073 million.

• Operating cash flow reached ¥5,485 million, with cash and equivalents at term-end totaling ¥11,255 million, up from ¥7,320 million.

• Gross profit margin improved, with gross profit at ¥14,051 million.

Outlook and guidance

• FY2027 guidance: net sales ¥34,000 million (+13%), operating profit ¥8,300 million (+7.3%), net profit ¥6,400 million (+3%).

• Segment guidance: Precision Machinery sales expected at ¥10,500 million, Optical Communications at ¥23,500 million.

• Planned dividend per share for FY2027 is ¥120, with a payout ratio of 16.8%.

• Demand for optical communication components expected to remain strong due to ongoing data center expansion and AI adoption.

• Revised upward targets for final year of medium-term plan: net sales ¥34,000 million, operating profit ¥8,300 million.