Sinfonia Technology (6507) Q4 2025 earnings summary

Executive summary

• Achieved record highs in orders received, net sales, operating profit, ordinary profit, and net profit for FY2024, with strong growth across all business segments, especially Motion Equipment and Power Electronics Equipment.

• Orders received rose 32.0% year-over-year to ¥143,577 million, with net sales up 16.1% to ¥119,150 million and profit attributable to owners of parent up 61.2% to ¥12,097 million.

• Strong demand in aerospace, semiconductor, and defense sectors drove growth, supported by AI-related investments.

• FY2025 guidance projects continued growth in net sales and operating profit, with a conservative outlook due to geopolitical uncertainties.

Financial highlights

• Operating profit increased 57.2% year-over-year to ¥15,734 million; ordinary profit rose 51.4% to ¥15,941 million.

• Net profit attributable to owners of parent increased 61.2% to ¥12,097 million.

• Gross margin improved to 26.7% from 24.7% year-over-year; operating margin reached 13.2%.

• Free cash flow surged to ¥9,458 million, up 304.7% year-over-year.

• All major profit metrics exceeded forecasts, driven by strong segment performance and extraordinary gains from reduction of cross-shareholdings.

Outlook and guidance

• FY2025 forecast: orders received ¥145,000 million (+1.0%), net sales ¥125,000 million (+4.9%), operating profit ¥16,500 million (+4.9%), net profit ¥11,300 million (−6.6%).

• Year-end dividend for FY2025 proposed at ¥115 per share; FY2026 planned at ¥120 per share.

• R&D expenses and capital expenditures to increase significantly, supporting new product development and production expansion.

• Conservative earnings forecast due to indirect risks from geopolitical factors and U.S. tariffs.