TS TECH Co. (7313) Q4 2025 earnings summary

Executive summary

• FY2025 revenue rose 4.3% year-over-year to ¥460.5 billion, driven by FX gains and new business sales, but operating income declined 6.2% to ¥16.4 billion due to higher costs, lower production, and weak China demand.

• Net income attributable to owners fell 15.5% to ¥8.6 billion, reflecting lower production in China and increased expenses.

• Dividend per share increased to ¥83, up ¥10 year-over-year, with a stable return policy.

• TS TECH supplied 63% of Honda's global automotive seats and expanded commercial rights with Suzuki and new joint ventures in India.

• Comprehensive income dropped sharply to ¥6.3 billion from ¥41.3 billion in FY2024, mainly due to negative other comprehensive income.

Financial highlights

• Revenue: ¥460.5 billion (+4.3% YoY); Operating income: ¥16.4 billion (-6.2% YoY); Net income: ¥8.6 billion (-15.5% YoY).

• Capital investment surged 59.6% to ¥21.7 billion; R&D expenses rose 25.6% to ¥19.5 billion.

• Cash dividend per share: ¥83 (+13.7% YoY); payout ratio 117.4%.

• Cash and cash equivalents at year-end fell to ¥111.5 billion, down ¥39.2 billion from the previous year.

• Revenue exceeded November 8 forecasts by ¥17.5 billion, but operating income missed by ¥1.1 billion due to model-mix and temporary costs.

Outlook and guidance

• FY2026 revenue forecast at ¥430.0 billion (-6.6% YoY) due to lower production and FX headwinds.

• Operating income expected to remain flat at ¥16.5 billion (+0.4% YoY) as profit improvements offset volume declines.

• Net income forecast to rise 10.1% to ¥9.5 billion; basic EPS forecast at ¥79.63.

• Dividend per share projected to increase to ¥90 (+8.4%).

• FY2026 forecasts do not reflect potential US trade policy impacts due to uncertainty.