| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥51101.7B | ¥46797.9B | +9.2% |
| Operating Income | ¥4181.7B | ¥3206.6B | +30.4% |
| Ordinary Income | ¥4312.7B | ¥3095.0B | +39.3% |
| Net Income | ¥2689.0B | ¥1218.8B | +120.6% |
| ROE | 9.5% | 4.8% | - |
For the fiscal year ended March 2026, Revenue was ¥5兆1,102B (YoY +¥4,304B +9.2%), Operating Income was ¥4,182B (YoY +¥975B +30.4%), Ordinary Income was ¥4,313B (YoY +¥1,218B +39.3%), and Net Income attributable to owners of the parent was ¥3,695B (YoY +¥1,757B +90.7%). Price pass-through and mix improvement contributed, raising the gross margin to 20.2% (prior year 18.8%) — a +1.4pt improvement — and expanding the operating margin to 8.2% (prior year 6.9%) — a +1.3pt increase. Equity-method investment income doubled to ¥314B (prior year ¥148B), and special gains of ¥981B (including ¥792B gain on sale of subsidiary shares) contributed to Net Income rising 2.2x year-on-year. By segment, Information & Communications stood out with Revenue +46.3% and Operating Margin 23.7%, while Automotive remained the core with Revenue ¥2.94兆 (composition ratio 57.5%). ROE was 9.5% (prior year 6.4%), Operating Cash Flow was ¥4,252B (YoY +5.7%), and Free Cash Flow was ¥2,503B, indicating a strong cash-generation capability.
【Revenue】Revenue increased across all segments to ¥5兆1,102B (YoY +9.2%). Automotive-related was ¥2.94兆 (+7.4%), accounting for 57.5% of sales and remaining the core business; Environmental Energy-related was ¥1.18兆 (+9.0%); Information & Communications-related expanded significantly to ¥3,266B (+46.3%); Electronics-related was ¥4,091B (+8.4%); Industrial Materials & Others was ¥3,884B (+4.2%), showing broad-based growth. The large increase in Information & Communications was driven by securing large projects and expanded sales of high-value-added products.
【Profitability】Cost of sales was ¥4兆761B (YoY +7.2%), lagging behind revenue growth, improving gross margin to 20.2% (prior year 18.8%) — +1.4pt. The peak of raw material prices passing and the penetration of price adjustments contributed. SG&A was ¥6,159B (+10.1%), slightly higher as a percentage of sales at 12.1% (prior year 12.0%), but gross profit increases absorbed this and Operating Income rose to ¥4,182B (+30.4%), expanding the operating margin to 8.2% (prior year 6.9%) — +1.3pt. By segment, Information & Communications Operating Income was ¥774B (+288.6%), Industrial Materials Operating Income was ¥314B (+52.5%), and Automotive maintained increased profit at ¥1,797B (+4.2%). Non-operating items included equity-method investment income doubling to ¥314B (prior year ¥148B) and interest expense decreasing to ¥237B (prior year ¥297B), resulting in Ordinary Income of ¥4,313B (+39.3%). After special gains of ¥981B (gain on sale of subsidiary shares ¥792B, gain on sale of fixed assets ¥104B, gain on sale of investment securities ¥86B) and special losses of ¥243B (business restructuring costs ¥117B, impairment losses ¥71B), Pretax Income was ¥5,052B (+66.1%). After income taxes of ¥1,040B (effective tax rate 20.6%) and Net Income attributable to non-controlling interests of ¥316B (prior year ¥281B), Net Income attributable to owners of the parent was ¥3,695B (+90.7%). In conclusion, revenue increases and significant profit growth were achieved across all segments.
Automotive-related reported Revenue ¥2.94兆 (YoY +7.4%), Operating Income ¥1,797B (+4.2%), margin 6.1%, and accounts for 57.5% of revenue as the core business. Profit margin expansion lagged revenue growth, suggesting the impact of OEM price negotiations and raw material costs. Environmental Energy-related recorded Revenue ¥1.18兆 (+9.0%), Operating Income ¥906B (+15.1%), margin 7.7%, supported by project buildup and efficiency gains. Information & Communications-related achieved Revenue ¥3,266B (+46.3%), Operating Income ¥774B (+288.6%), margin 23.7%, delivering outstanding high profitability driven by large project wins and higher solution mix. Electronics-related had Revenue ¥4,091B (+8.4%), Operating Income ¥395B (+34.9%), margin 9.7%, with operational efficiency improvements. Industrial Materials & Others posted Revenue ¥3,884B (+4.2%), Operating Income ¥314B (+52.5%), margin 8.1%, with price pass-through and productivity gains contributing. Overall, margin expansion in Information & Communications improved the earnings structure; while dependence on Automotive remains high, profitability improvements in other segments have diversified the portfolio.
【Profitability】Operating margin 8.2% (prior year 6.9%) improved +1.3pt to the highest level in three years; gross profit margin 20.2% (prior year 18.8%) improved +1.4pt. ROE was 9.5% (prior year 6.4%), composed of Net Profit Margin 7.2% (prior year 4.1%), Total Asset Turnover 1.06x (prior year 1.05x), and Financial Leverage 1.70x (prior year 1.76x). Improvement in Net Profit Margin was the largest contributor, though note that one-off special gains are included; core operating-stage margin also improved +1.3pt, indicating that price pass-through and mix improvements are taking hold. 【Cash Quality】Operating Cash Flow was ¥4,252B, exceeding Net Income of ¥3,695B (Operating CF/Net Income = 1.15x), indicating good cash backing for earnings. However, Operating CF/EBITDA (Operating Income + Depreciation) was 0.68x, low, with inventories increasing ¥479B and trade receivables increasing ¥704B pressuring working capital. 【Investment Efficiency】Capex was ¥2,222B and depreciation ¥2,098B, giving a Capex/Depreciation ratio of 1.06x, indicating a balanced mix of maintenance and growth investment. Free Cash Flow of ¥2,503B covers dividends of ¥756B by 3.3x, supporting sustainability. 【Financial Soundness】Equity Ratio was 58.8% (prior year 57.0%), Debt/Equity ratio 11.6%, Current Ratio 180% (prior year 180%), indicating stability. Interest-bearing debt was ¥6,776B (prior year ¥6,872B), slightly down, with short-term debt ratio at 55.1% somewhat high, but interest coverage (Operating Income / Interest Expense) at 17.6x indicates strong ability to service interest.
Operating CF was ¥4,252B (YoY +5.7%), exceeding Net Income ¥3,695B by ¥557B, maintaining Operating CF/Net Income = 1.15x and high quality. Operating CF subtotal (before working capital changes) was ¥4,927B, from which working capital changes of inventory increase ¥479B, trade receivables increase ¥704B, and trade payables increase ¥269B were applied, and after income tax payments of ¥644B, the final Operating CF was achieved. Operating CF/EBITDA (Operating Income ¥4,182B + Depreciation ¥2,098B = ¥6,280B) was 0.68x, low, and there is room to improve working capital efficiency with days inventory outstanding 91 days (prior year 89 days) and days sales outstanding 67 days (prior year 69 days). Investing CF was -¥1,749B, including Capex ¥2,222B, proceeds from sale of tangible fixed assets ¥120B, and proceeds from sale of subsidiary shares ¥530B. Financing CF was -¥3,260B, including net decrease in short-term borrowings ¥965B, dividend payments ¥866B (¥866B to parent company shareholders, including ¥126B to non-controlling interests), and treasury stock purchases ¥0.1B (negligible). FCF was ¥2,503B (Operating CF ¥4,252B - Capex ¥2,222B + asset sale ¥120B), ample, covering parent company dividends ¥756B 3.3x, leaving substantial financial flexibility. Cash and deposits were ¥2,370B (prior year ¥2,959B) decreased due to short-term debt repayments, but liquidity risk is limited given FCF generation.
Ordinary Income ¥4,313B consisted of Operating Income ¥4,182B plus non-operating income ¥586B (dividends received ¥73B, interest received ¥39B, equity-method income ¥314B, etc.) and minus non-operating expenses ¥455B (interest expense ¥237B, etc.), with the doubling of equity-method income (¥148B → ¥314B) providing support. One-off items included special gains ¥981B (gain on sale of subsidiary shares ¥792B, gain on sale of fixed assets ¥104B, gain on sale of investment securities ¥86B) and special losses ¥243B (business restructuring costs ¥117B, impairment losses ¥71B, etc.), netting to a +¥739B tailwind. Approximately 20% of the parent company Net Income ¥3,695B is attributable to one-off gains, suggesting Net Income may slow in FY2027. Non-operating income was 1.1% of sales, below 5%, indicating an operating-driven profit structure. Operating CF ¥4,252B / Net Income ¥3,695B = 1.15x indicates good accrual quality, but Operating CF/EBITDA = 0.68x remains at a cautionary level due to working capital burden; normalization of inventory and receivables is key to improving cash conversion next period. Comprehensive income ¥5,968B significantly exceeded Net Income ¥2,689B, with other comprehensive income items such as foreign currency translation adjustments ¥784B, valuation differences on available-for-sale securities ¥583B, and retirement benefit adjustments ¥524B contributing to net asset accumulation.
The FY2027 (year ending March 2027) full-year forecast is Revenue ¥5兆3,000B (YoY +3.7%), Operating Income ¥4,250B (+1.6%), Ordinary Income ¥4,320B (+0.2%), and Net Income attributable to owners of the parent ¥3,200B (-13.4%). Revenue is expected to be supported by continued growth in Environmental Energy and Information & Communications, but Operating Income is nearly flat (+1.6%) and Ordinary Income shows only a slight increase. Net Income is projected to decline -13.4% year-on-year reflecting the lapse of one-off special gains; the forecast is conservative assuming maintenance of core operating profit levels. Interim dividend ¥19 and year-end dividend ¥20 for an annual dividend of ¥39 (post stock-split basis; pre-split equivalent ¥156) are planned, with a payout ratio around 38.0%, maintaining a sustainable range. Operating Income is projected to increase by only ¥68B versus FY2026 results, and the guidance factors in uncertainty in FX, raw material costs, and automotive demand, as well as costs associated with working capital normalization.
Annual dividend was ¥154 (interim ¥50 + year-end ¥104), a large increase from prior year ¥36, with payout ratio 32.5% (total dividends ¥756B / Net Income ¥2,689B; on a pre-noncontrolling-interest basis 33.1%). Share repurchases were ¥0.1B, negligible, so total returns are dividend-centric. FCF ¥2,503B versus dividends ¥756B yields 3.3x coverage, indicating ample capacity, and cash and deposits ¥2,370B and retained earnings ¥19,036B support dividend sustainability. A stock split (1 share → 4 shares, effective date July 1, 2026) is planned for FY2027, with the post-split annual dividend forecast at ¥39 (pre-split equivalent ¥156), continuing a dividend-up policy. The payout ratio of 38.0% is calculated on a Net Income base of ¥3,200B (post one-off lapse), confirming a persistent return stance on core profit levels. DOE (dividend on equity) is 3.4%, leaving room for retained earnings accumulation and growth investment.
Working capital efficiency deterioration: Days inventory outstanding 91 days and DSO 67 days show an extending trend, and Operating CF/EBITDA = 0.68x is at a cautionary level. Inventory of ¥1兆181B (YoY +¥951B) increases the risk of valuation losses and markdowns if demand slows, and trade receivables ¥9,329B (YoY +¥525B) carry credit and collection risks. Delays in working capital normalization would constrain cash generation in subsequent periods.
Segment concentration risk: Automotive-related accounts for 57.5% of revenue and contributes ¥1,797B in Operating Income (43.0% of company operating income), indicating high dependency; fluctuations in OEM demand, EV transition, and changes in pricing power could directly impact performance. Automotive operating margin 6.1% is low versus Information & Communications 23.7%, so while there is scope for mix improvement, margin pressure in the core business could suppress overall profitability.
Dependence on one-off gains and Net Income volatility: FY2026 special gains ¥981B (about 20% of Net Income) were mainly due to gain on sale of subsidiary shares; the FY2027 forecast incorporates a -13.4% decline in Net Income reflecting this reversal. Final profit reliance on one-off items reduces predictability for investors and increases stock price volatility risk.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 8.2% | 7.8% (4.6%–12.3%) | +0.4pt |
| Net Margin | 5.3% | 5.2% (2.3%–8.2%) | +0.1pt |
Operating margin is +0.4pt above the industry median, and Net Margin is roughly at the median level, placing profitability in the mid-to-upper range within manufacturing.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 9.2% | 3.7% (-0.4%–9.3%) | +5.5pt |
Revenue growth outpaces the industry median by +5.5pt, achieving a top-tier growth pace within manufacturing.
※Source: Company aggregation
The key takeaway from the results is confirmation of core profitability improvement with Operating Margin +1.3pt at the operating level. Price pass-through and mix improvement (high-marginization of Information & Communications, efficiency gains in Environmental Energy and Industrial Materials) suggest structural change, and sustainability will be a monitoring point. However, at the Net Income level, special gains of ¥981B (mainly gain on sale of subsidiary shares) accounted for roughly 20% of profit, and FY2027 guidance factors in a reactive decline (Net Income -13.4%) with a conservative outlook. Dividends were raised substantially to annual ¥154 (pre-split equivalent ¥156), maintaining a payout ratio of 32.5% within a sustainable range, and FCF coverage of 3.3x indicates strong financial capacity.
On cash flow, Operating CF ¥4,252B and FCF ¥2,503B demonstrate strong generation, but Operating CF/EBITDA = 0.68x remains at a cautionary level due to working capital burden. Inventory +¥479B and receivables +¥704B reflect demand planning and supply-chain responses, but continued deterioration in turnover (inventory 91 days, receivables 67 days) would pressure cash conversion next period. Short-term debt ratio 55.1% remains a refinancing management point. By segment, Information & Communications (Revenue +46.3%, Operating Margin 23.7%) is the starting point for portfolio improvement, while Automotive dependence at 57.5% remains high and vulnerable to OEM cycles and EV trends. Going forward, normalization of working capital, sustainability of high margins in Information & Communications, and margin improvement in Automotive will be key monitoring items.
This report is an earnings analysis document automatically generated by AI analyzing XBRL earnings release data. It does not constitute a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by our firm based on public financial statements. Investment decisions are your responsibility; consult a professional advisor as needed.