SMC (6273) Q4 2025 earnings summary

Executive summary

• FY2024 net sales rose 2.0% year-over-year to 792.1 billion yen, with growth in Greater China offsetting declines in Japan and North America; operating profit decreased 3.0% to 190.2 billion yen.

• Net profit attributable to owners fell 12.3% year-over-year to 156.3 billion yen, impacted by foreign exchange losses and lower extraordinary gains.

• Electric-related sectors in China showed recovery, while automotive capital investments were postponed due to the U.S. presidential election.

• SMC maintained a 50% total return ratio, including a share buyback of around 25 billion yen, and increased the annual dividend to 1,000 yen per share.

• ROE declined to 8.2% from 10.0% the previous year.

Financial highlights

• Net sales rose to 792.1 billion yen in FY2024, up 2.0% year-over-year; operating profit fell to 190.2 billion yen, down 3.0%.

• Ordinary profit dropped 16.4% year-over-year to 209.9 billion yen, mainly due to increased foreign exchange losses.

• Comprehensive income was 139.7 billion yen, down 48.7% year-over-year.

• Free cash flow was positive at 231.9 billion yen, a 265.6 billion yen improvement year-over-year.

• Capex reached 107.8 billion yen, exceeding the revised plan.

Outlook and guidance

• FY2025/2026 net sales forecasted at 850.0 billion yen, up 7.3% year-over-year; operating profit expected to rise 13.0% to 215.0 billion yen.

• Sales growth anticipated from mid-year, driven by semiconductor recovery, EV demand, and automation trends.

• U.S. tariff hikes expected to reduce sales by 8 billion yen and gross profit by 10 billion yen, factored into guidance.

• Record-high capital investment of 180 billion yen planned to strengthen development and production capacity.

• Annual dividend to be maintained at 1,000 yen per share; share buyback up to 30 billion yen planned.