Shinwa (7607) Q4 2025 earnings summary

Executive summary

• FY25 net sales reached a record ¥86,146m, up 10.7% YoY; operating income rose 27.5% to ¥4,536m and net profit rose 21.3% to ¥3,312m.

• Domestic demand for EV production equipment, automation and manufacturing DX supported growth, alongside pricing, higher-value products and cost efficiency.

• Mixed overseas results and uncertainty in automotive investment tempered the outlook.

Financial highlights

• Gross profit was ¥13,865m, up from ¥12,096m; gross margin improved to 16.1% from 15.5%.

• Ordinary profit rose 23.3% to ¥4,809m; EPS increased to ¥247.22 from ¥203.93.

• Total assets were ¥74,409m and net assets ¥43,609m at year-end.

• Cash and cash equivalents increased ¥9,162m YoY to ¥28,786m.

Outlook and guidance

• FY26 forecast: net sales ¥87,000m (+1.0%), operating income ¥4,300m (-5.2%), ordinary profit ¥4,500m (-6.4%) and net profit ¥3,100m (-6.4%).

• Planned gross margin is 16.1%; higher personnel costs and salary increases are expected to weigh on profit, with the SG&A ratio forecast to rise 0.3 percentage points.

• FY26 R&D spending is planned at ¥123m, down 21.6% YoY, reflecting weaker EV and automotive-battery markets.

• FY26–FY28 investment for a second Kasugai plant is targeted at ¥5.5bn, including ¥2bn in FY26; completion is scheduled for summer 2027.