Tokyo Seimitsu (7729) Q4 2025 earnings summary

Executive summary

• FY2025/3 sales reached ¥150.5B and net profit ¥25.6B, both record highs, driven by strong HPC/Gen.AI and SPE demand.

• Orders increased 20% YoY to ¥145.6B, with company-wide growth and stable Metrology segment upgrades.

• Operating profit rose 17% YoY to ¥29.7B, recurring profit up 13% to ¥29.9B.

• Annual dividend set at ¥253/share, up ¥61 YoY, with a payout ratio of 40.1%.

• Mid-term plan (FY2026/3–FY2028/3) targets sales of ¥185.0B, OP of ¥45.0B, and ROE of 15%.

Financial highlights

• FY2025/3 sales: ¥150.5B (+12% YoY); operating profit: ¥29.7B (+17% YoY, OPM 20%); net profit: ¥25.6B (+32% YoY).

• Gross profit: ¥62.5B, up from ¥54.8B YoY; operating margin improved to 19.7%.

• Free cash flow turned positive for the first time in three years, supported by higher profits and asset sales.

• Cash and cash equivalents at year-end were ¥54.5B, up from ¥36.7B.

• Dividend per share for FY2025/3 totaled ¥253.

Outlook and guidance

• FY2026/3 forecast: sales ¥159.0B (+6% YoY), operating profit ¥31.0B (+4% YoY), net profit ¥21.7B (-15% YoY).

• Growth expected to continue, led by HPC/SPE demand; Metrology segment to see stable sales with some recovery in testing systems in 2H.

• Dividend for FY2026/3 is projected at ¥214/share.

• Capex includes land acquisition for a new plant in Hachioji, Tokyo.

• Forex assumption: ¥140/USD; minimal forex impact due to high yen-based sales.