Toyo Tanso (5310) Q4 2025 earnings summary

Executive summary

• Net sales for FY2025 were ¥46,189 million, down 13.0% year-over-year, with operating profit falling 44.8% to ¥6,759 million and profit attributable to owners of parent dropping 45.1% to ¥5,464 million.

• Declines were driven by lower volumes, unfavorable product mix, increased depreciation, and a semiconductor market correction, despite strong demand in generative AI.

• Extraordinary losses of ¥656 million were recorded due to restructuring in the small carbon brush business in China.

• Workforce restructuring and extra retirement payments were implemented in Chinese subsidiaries to optimize the carbon brush business.

Financial highlights

• Operating profit margin decreased from 23.1% to 14.6% year-over-year.

• Ordinary profit was ¥8,091 million, down 40.0% year-over-year, but exceeded forecasts by 15.6%.

• Basic EPS was ¥260.58, down from ¥474.95 the previous year.

• ROE declined to 5.7% from 11.2% year-over-year.

• Cash and cash equivalents at year-end were ¥12,069 million, down from ¥14,652 million.

Outlook and guidance

• FY2026 net sales are forecast to rise 6.1% to ¥49,000 million, with operating profit expected to decline 8.3% to ¥6,200 million due to higher depreciation and inventory impacts.

• Profit attributable to owners of parent is projected at ¥5,000 million, with ROE at 5.1%.

• Dividend payout ratio benchmark raised to 40%, with dividends per share maintained at ¥145.

• Assumes exchange rates of 145 yen/USD, 176 yen/EUR, and 20 yen/CNY.