THK (6481) Q4 2025 earnings summary

Executive summary

• Revenue from continuing industrial machinery operations rose 7.9% year-over-year to ¥240.4 billion, driven by demand recovery in China and the U.S., despite global economic uncertainty and geopolitical risks.

• Operating income declined 9.3% year-over-year to ¥14.4 billion due to unfavorable sales mix, higher U.S. tariffs, losses from an equity affiliate, and restructuring costs.

• A major loss of ¥81.6 billion was recorded from the liquidation and transfer of the automotive & transportation business, resulting in a net loss attributable to owners of ¥69.9 billion.

• The automotive & transportation business was classified as a discontinued operation and is set for transfer in June 2026.

Financial highlights

• Revenue and operating income exceeded the revised plan set in November 2025.

• Net sales increased year-over-year in all regions except Japan; strong growth in Asia, especially Taiwan, Singapore, and India.

• Total assets decreased to ¥472.9 billion, and equity dropped by ¥124 billion, partly due to treasury stock cancellation.

• Gross margin decreased as cost-to-revenue ratio rose to 70.7%, and operating margin dropped to 6.0%.

Outlook and guidance

• Fiscal 2026 forecast: revenue of ¥260 billion (+8.1%), operating income of ¥26 billion (+80.1%), and profit attributable to owners of ¥21.5 billion.

• Orders are recovering in Japan and Europe, with strong demand in the semiconductor sector and growth focused on industrial machinery and FA solutions.

• Dividend policy targets DOE of 8%, with a planned dividend of ¥184 per share for FY2026.