Shima Seiki Mfg (6222) Q4 2025 earnings summary

Executive summary

• Net sales for FY2024 were ¥32,520 million, down 9.4% year-over-year, with an operating loss of ¥11,914 million and net loss attributable to owners at ¥14,275 million.

• Sales declined across major regions, with Japan down 20.1%, Europe down 11.6%, and Asia down 7.4% compared to the previous year.

• Comprehensive income was negative ¥13,844 million, reversing from a positive ¥6,161 million the previous year.

• Flat knitting machines, the largest segment, saw a 10.3% decrease in sales, with WHOLEGARMENT® machine sales ratio dropping to 19% from 28% last year.

• Cash and deposits decreased by ¥693 million, and capital adequacy ratio fell to 78.2% from 85.2%.

Financial highlights

• Gross profit dropped to ¥8,633 million from ¥14,689 million year-over-year, with gross margin deterioration.

• Operating profit swung from ¥430 million to a loss of ¥11,914 million; ordinary profit fell from ¥1,018 million to a loss of ¥11,481 million.

• Basic earnings per share declined to negative ¥413.58 from ¥29.85 year-over-year.

• Cash and cash equivalents at year-end were ¥10,363 million, down ¥2,446 million from the previous year.

• Net assets per share stood at ¥2,251.

Outlook and guidance

• FY2025 forecast projects net sales of ¥44,500 million (up 36.8%), operating income of ¥1,500 million, and net income of ¥2,000 million.

• Flat knitting machine sales expected to rise 49.8% to ¥34,800 million, with operating income of ¥6,600 million.

• Dividend plan for FY2026: interim and year-end dividends of ¥10.0 each, targeting a 40% payout ratio.

• Exchange rate assumptions: 140 JPY/USD and 160 JPY/EUR for FY2025.

• Annual dividend forecast for FY2026 is ¥20.00 per share.