Teikoku (6333) Q4 2025 earnings summary

Executive summary

• FY2025 revenue and operating profit reached records; net income rose 22.0% but remained below its record after a ¥487m special loss related mainly to exiting the electronic components business.

• Pump demand and a weaker yen supported growth, while China remained weak; FY2026 guidance projects lower revenue and profit amid the components exit, China’s slowdown and yen appreciation.

Financial highlights

• FY2025 revenue was ¥30,546m, up 4.5%; gross profit was ¥13,885m, up 13.4%, and operating profit was ¥6,055m, up 24.0%.

• Ordinary profit rose 15.7% to ¥6,296m; net income attributable to owners of the parent increased 22.0% to ¥3,811m.

• Comprehensive income increased 17.2% to ¥5,123m; basic EPS rose to ¥219.27 from ¥173.81.

• Operating cash flow improved to ¥3,944m from ¥2,395m; year-end cash and cash equivalents were ¥11,998m, up from ¥10,834m.

• Pump volume, product mix and FX lifted gross profit; higher personnel and other SG&A costs partly offset gains.

Outlook and guidance

• FY2026 forecast: revenue ¥27,520m (-9.9%), operating profit ¥5,000m (-17.4%), ordinary profit ¥5,120m (-18.7%) and net income ¥3,700m (-2.9%).

• Forecast assumes ¥143/$, ¥157/€ and ¥19.5/CNY, versus FY2025 actual rates of ¥151.7/$, ¥164.1/€ and ¥21.0/CNY; FY2026 EPS forecast is ¥222.77.

• FY2026 pump revenue is planned at ¥27,240m (-7.0%) and operating profit at ¥4,990m (-18.2%); lower sales and gross margin are expected to weigh on earnings.

• FY2027 mid-term targets are revenue ¥32,000m, operating profit ¥5,700m and ROE 14%; FY2026 is expected to be a down year versus the plan’s first year.