Tsubakimoto Chain (6371) Q4 2026 earnings summary

Executive summary

• Revenue/net sales grew 6.0% year-over-year to ¥295,878 million, driven by strong performance in Chain and Mobility segments and the consolidation of Daido Kogyo.

• Operating income/profit declined 5.6% year-over-year to ¥21,578 million, impacted by one-off expenses and acquisition costs.

• Net income/profit attributable to owners of parent surged 34.3% year-over-year to ¥29,708 million, mainly from a gain on bargain purchase linked to the Daido Kogyo acquisition.

• Comprehensive income increased to ¥40,476 million from ¥18,562 million the previous year.

• All business segments reported sales growth; operating income rose in Motion Control and Mobility, but declined in Chain and Materials Handling.

Financial highlights

• Operating margin decreased by 1.0pt to 7.3% year-over-year.

• ROE improved by 2.2pt to 10.7% year-over-year.

• Bookings/orders and backlog both increased, with bookings reaching ¥300,606 million.

• Basic earnings per share rose to ¥295.80 from ¥212.65 year-over-year (adjusted for stock split).

• Total assets increased to ¥459,784 million, up ¥88,274 million from the previous year.

Outlook and guidance

• FY2026/FY2027 sales forecasted to rise 18.3% to ¥350,000 million; operating income/profit expected to increase 18.2% to ¥25,500 million.

• Net income/profit projected to decrease 25.9% year-over-year to ¥22,000 million, reflecting normalization after one-time gains.

• Operating margin expected to remain stable at 7.3% despite factoring in potential cost increases from geopolitical risks.

• Dividend forecast for FY2026: ¥80 per share, payout ratio of 35.0% (excluding gain on bargain purchase).

• Exchange rate assumptions: 1 USD = 148 JPY, 1 Euro = 180 JPY.