Stanley Electric (6923) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025, increased by 1.2% year-over-year to 380.28 billion yen, while operating income declined by 13.2% to 28.58 billion yen due to US tariffs, semiconductor shortages, and higher costs.

• Net income attributable to owners rose 12.6% year-over-year to 21.37 billion yen, with net income per share up 26.5%.

• Comprehensive income surged 88.3% year-over-year to 62.92 billion yen, driven by strong foreign currency translation gains.

• Asia-Pacific two-wheel vehicle sales remained strong; China saw sales decline but improved income margin through rationalization.

Financial highlights

• Operating income margin decreased from 8.8% to 7.5% year-over-year.

• Ordinary income fell by 8.9% year-over-year to 33.49 billion yen.

• Gross profit increased slightly to 76.31 billion yen, while operating profit declined to 28.58 billion yen from 32.95 billion yen year-over-year.

• R&D expenses increased to 20.00 billion yen from 17.16 billion yen year-over-year.

• Total assets increased to 779.32 billion yen, and net assets decreased to 558.45 billion yen as of December 31, 2025.

Outlook and guidance

• Full-year net sales forecast is 500.0 billion yen, down 1.9% year-over-year, with operating profit expected to decline 8.2% to 45.0 billion yen.

• Profit attributable to owners of parent is projected at 31.4 billion yen, a 2.1% decrease year-over-year, and basic EPS forecast is 229.48 yen.

• Annual dividend forecast raised to 100.00 yen per share, up from 72.00 yen in the previous year.

• Dividend policy targets the higher of a 3.5% DOE or a 40% consolidated payout ratio.

• Full-year capital investment forecast for FY2026/3 is 436.0 billion yen, with depreciation forecast at 157.1 billion yen.