| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥20702.0B | ¥20144.5B | +2.8% |
| Operating Income / Operating Profit | ¥1181.4B | ¥273.0B | +332.8% |
| Ordinary Income | ¥1689.9B | ¥636.3B | +165.6% |
| Net Income / Net Profit | ¥3008.6B | ¥441.8B | +580.9% |
| ROE | 8.9% | 1.4% | - |
FY2026 (Apr 2025–Mar 2026) delivered Revenue of ¥20,702B (YoY +¥557B +2.8%), Operating Income of ¥1,181B (YoY +¥908B +332.8%), Ordinary Income of ¥1,152B (YoY +¥557B +93.7%), and Profit Attributable to Owners of Parent of ¥1,410B (YoY +¥1,169B +485.0%). While top-line growth was modest, profitability improved substantially. Operating margin rose to 5.7% (prior year 1.4%) up +4.3pt, and net income margin attributable to owners of parent improved to 6.8% (prior year 1.2%) up +5.6pt. Gross margin improved to 29.4% (+1.6pt) and SG&A ratio declined to 23.6% (-2.6pt), reflecting material cost-structure improvements that drove Operating Income to more than triple year-on-year. The core Solutions segment recorded Operating Income of ¥1,039B (+41.0%), including a one-time gain of approximately ¥170B from the disposal of Southern Carlson, while Core Components benefited from strong semiconductor-related parts and restructuring to post Operating Income of ¥631B (turning from a ¥19B loss prior year to profit). Electronic Components also returned to profit at ¥73B (from ¥8B loss prior year), so all segments showed earnings improvements. Net finance income was net received ¥481B (prior year ¥331B), boosting Ordinary Income. Comprehensive income was ¥3,966B, driven by fair value gains on securities (¥1,654B) and foreign exchange translation gains (¥610B), materially increasing equity. For FY2027 (Mar 2027), the company plans Revenue of ¥19,400B (-6.3%) and Operating Income of ¥1,300B (+10.0%), indicating continued profit growth while absorbing impacts from business disposals.
【Revenue】
Revenue amounted to ¥20,702B (+2.8%). By region, Japan ¥6,038B (+3.4%), Asia ¥3,130B (+11.7%), China ¥2,552B (+7.2%), Europe ¥4,188B (+2.8%), while the U.S. declined to ¥3,965B (-6.2%). By segment, Core Components increased substantially to ¥6,526B (+10.4%), driven by semiconductor ceramic materials and automotive systems. Electronic Components rose modestly to ¥3,626B (+2.5%), supported by higher sales of automotive MLCCs and telecom capacitors. Solutions slightly declined to ¥10,445B (-1.3%), pressured by the Southern Carlson disposal (completed Jan 2026) although machine tools and information & communication services remained strong. The Revenue growth rate of +2.8% is -0.9pt below the industry median +3.7%, but cost optimization and a shift to higher-value products improved gross margin by +1.6pt, delivering amplified profit leverage despite modest Revenue growth.
【Profitability】
Cost of goods sold was controlled at ¥14,626B (+0.5%), raising Gross Profit to ¥6,076B (+8.7%). Gross margin improved to 29.4% from 27.8% (+1.6pt), led by increased semiconductor parts sales and restructuring in Core Components, and MLCC sales expansion and cost reductions in Electronic Components. SG&A decreased substantially to ¥4,895B (-8.0%), lowering the SG&A ratio to 23.6% (prior year 26.4%) -2.6pt. R&D expenditure was ¥1,157B (-0.3%), maintaining R&D-to-sales at 5.6% while reducing administrative and marketing expenses. As a result, Operating Income reached ¥1,181B (+332.8%), with an Operating margin of 5.7% (prior year 1.4%) up +4.3pt. The gap to the industry median margin of 7.8% narrowed materially year-on-year, though a -2.0pt deficit remains. Financial income was ¥615B (+1.2%), including dividend income and interest on securities, while financial expenses halved to ¥139B (-49.7%). Equity-method losses were ¥8B negative (expanded slightly from ¥2B negative prior year). Including other net items of ¥41B, Ordinary Income reached ¥1,690B (+165.6%). Income taxes were ¥241B (effective tax rate 14.2%), down materially from ¥361B prior year due to geographic allocation and deferred tax effects. Profit for the period was ¥1,449B (+427.9%), and Profit Attributable to Owners of Parent was ¥1,410B (+485.0%), lifting net income margin to 14.5% (industry median 5.2%) up +9.3pt. One-off items included: Solutions segment one-time gain from Southern Carlson disposal ≈ ¥170B (recorded in other net), Electronic Components one-time loss ≈ ¥15B from disposal of silicon diode/power semiconductor businesses, and Core Components impairment of idle assets ≈ ¥50B (recorded in Q3). The difference between Ordinary Income ¥1,152B and Profit Attributable to Owners of Parent ¥1,410B was significantly influenced by OCI (Other Comprehensive Income) of ¥2,517B, reflecting fair-value gains on held equities and other items, indicating simultaneous improvements in recurring profit and balance-sheet valuation gains. In conclusion, the company posted modest Revenue growth with substantial profit expansion and materially improved profitability.
The flagship business is Solutions (Operating Income ¥1,039B, 50.5% of Revenue, 78.0% of profit composition), led by Machine Tools (Operating Income ¥352B +124.1%), Document Solutions (¥451B -8.0%), and Communications (¥121B +29.6%). The Solutions figure includes a one-time gain of ≈ ¥170B from the Southern Carlson disposal, but core businesses also showed improving profitability. Core Components posted Revenue ¥6,526B (+10.4%) and Operating Income ¥631B (turning from ¥19B loss prior year to profit, +3,439.4%), driven by semiconductor ceramic materials (organic packages for AI/data centers, ceramic packages), improving margin to 9.7%. Despite an idle-asset impairment of ≈ ¥50B recorded in 2026 Q3, the segment turned profitable for the fiscal year and plans Operating Income ¥805B (+27.6%) for FY2027. Electronic Components recorded Revenue ¥3,626B (+2.5%) and Operating Income ¥73B (turning from ¥8B loss prior year to profit, +994.4%), aided by KAVX restructuring and increased automotive MLCC sales. Margin of 2.0% remains low, but FY2027 targets ¥210B (+187.0%) seeking further margin improvement. Other businesses recorded Revenue ¥105B (-11.7%) and Operating loss ¥412B (prior year -¥470B), remaining in deficit and including GaN device business and R&D not allocated to reporting segments. The main drivers of consolidated Operating Income growth were Core Components’ large swing to profitability (contributing +¥650B) and Solutions’ profit increase (contributing +¥298B), with margin improvements across segments. Significant margin dispersion remains (Solutions 10.0% vs Electronic Components 2.0%), making Electronic Components’ margin improvement a key focus.
ROE improved to 4.3% (prior year 0.7%) but remains -2.0pt below the industry median 6.3%. Operating margin rose to 5.7% (prior year 1.4%) +4.3pt and is -2.0pt versus the industry median 7.8%. Net margin surged to 14.5% (prior year 1.4%) +13.1pt and is +9.3pt above the industry median 5.2%. Operating Cash Flow / Net Income is 1.60x (Operating Cash Flow ¥2,262B / Profit Attributable to Owners of Parent ¥1,410B), maintaining a healthy >1.0x level. FCF (Operating CF ¥2,262B + Investing CF ¥745B) is ¥3,008B, demonstrating strong generation well above capital expenditures ¥1,592B. Capex / Depreciation is 1.01x (Capex ¥1,592B / Depreciation ¥1,582B), roughly at maintenance/reinvestment level, with growth investments selectively executed. Equity Ratio remains high at 71.9% (prior year 71.3%), and current ratio is 286% (Current Assets ¥1.50T / Current Liabilities ¥0.53T), indicating very strong short-term liquidity. Interest-bearing debt (Short-term borrowings ¥561B + Long-term borrowings ¥1,890B) totals ¥2,451B; Debt/EBITDA (Interest-bearing debt ¥2,451B / EBITDA ≈ ¥2,763B = Operating Income ¥1,181B + Depreciation ¥1,582B) is 0.89x, a low level. Interest coverage (Operating Income ¥1,181B / Financial expenses ¥139B) is about 8.5x, robust. Total asset turnover is 0.45x (Revenue ¥20,702B / Total Assets ¥4.6T). Working capital days are DSO 67 days, DIO 130 days, CCC 149 days — somewhat long, indicating scope to improve inventory and receivables efficiency.
Operating Cash Flow was ¥2,262B, 1.60x of Profit Attributable to Owners of Parent ¥1,410B, demonstrating strong cash generation. Operating CF subtotal (pre-working capital changes) was ¥2,462B; changes in working capital included AR -¥218B, inventory -¥76B, AP -¥119B, slightly consuming working capital, but increased accrued expenses +¥71B and other liabilities +¥390B offset some outflows. Income tax paid was -¥743B, interest paid -¥62B, and lease payments -¥336B, resulting in Operating CF down -5% YoY. Investing CF was an inflow of ¥745B, including capex -¥1,592B (prior year -¥1,547B), intangible asset acquisitions -¥139B, proceeds from business disposals ¥788B (Southern Carlson disposal), proceeds from sales/redemption of securities ¥2,547B, purchases of securities -¥39B, and equity-method investments -¥812B (details unspecified, likely additional equity contributions). FCF was ¥3,008B (Operating CF ¥2,262B + Investing CF ¥745B), sufficient to cover dividends paid ¥722B + capex ¥1,592B = ¥2,314B. Financing CF was an outflow of -¥3,120B, mainly due to dividends paid -¥722B and share buybacks -¥2,000B. Net change in short-term borrowings was ¥78.6B raised - ¥890.6B repaid = net -¥812B; long-term borrowings net +¥42B (¥138B raised - ¥96B repaid); lease liability repayments -¥336B included. Cash and cash equivalents increased from ¥4,447B at the beginning of the period to ¥4,559B at period-end (+¥111B), with foreign exchange effects +¥223B contributing. Total shareholder returns (dividends + buybacks) were ¥2,722B, with FCF coverage 1.10x, roughly balanced, and OCF/Revenue at 10.9% which is standard. Operating CF / Net Income (owners of parent) 1.60x indicates high quality earnings, though OCF/EBITDA (¥2,262B / ¥2,763B) 0.82x is mid-range, indicating room to improve working capital efficiency. Cash-generation assessment is strong.
Recurring earnings improvement was driven primarily by the large Operating Income improvement (+¥908B), reflecting core-business margin improvements from gross margin expansion and SG&A reductions. One-time items include: a one-time gain of ≈ ¥170B from Southern Carlson disposal recorded in other net (¥41B operating-other net includes this), a one-time loss ≈ ¥15B from disposal of silicon diode/power semiconductor businesses in Electronic Components, and an idle-asset impairment ≈ ¥50B in Core Components. The difference between Ordinary Income ¥1,152B and Profit Attributable to Owners of Parent ¥1,410B is significantly influenced by OCI (Other Comprehensive Income) of ¥2,517B, consisting of FVOCI fair-value gains on financial assets ¥1,654B, foreign currency translation differences ¥610B, and remeasurements of defined benefit plans ¥240B, etc. Direct divergence between Ordinary Income and Net Income arises from tax effects and non-controlling interests adjustments, but including OCI results in Comprehensive Income ¥3,966B > Profit ¥1,449B, substantially contributing to equity. Non-operating income ¥615B is about 3.0% of Revenue ¥20,702B, under 5%, indicating no excessive dependence and likely composed of dividend income and interest on securities, thus judged to be recurring financial income. Accrual ratio is -1.8% (Operating CF ¥2,262B / Profit Attributable to Owners of Parent ¥1,410B -1.0 = 0.60, (Net Income - OCF) / Net Income = -¥852B / ¥1,449B ≈ -0.59), showing strong cash backing of profits. Impairment losses were ¥131B (prior year ¥401B), substantially reduced year-on-year; goodwill ¥2,740B (8.1% of equity) is modest in scale. Effective tax rate 14.2% (Income taxes ¥241B / Ordinary Income ¥1,690B) is low due to geographic allocation and deferred tax adjustments. Overall, the combination of improved recurring earnings and one-off gains plus OCI-driven equity increases supports a high-quality earnings profile.
Full-year forecast for FY2027 (Mar 2027) projects Revenue ¥19,400B (-6.3%), Operating Income ¥1,300B (+10.0%), Ordinary Income ¥1,700B (+0.6%), Profit Attributable to Owners of Parent ¥1,410B (+0.0%), EPS ¥102.73, and dividend ¥56 (prior year ¥52, +¥4). The Revenue decline is mainly due to the completed Southern Carlson disposal (≈ ¥270B Revenue impact), but Operating Income is expected to rise +10.0% through continued restructuring and expansion of higher-value products. Although progress rates are not disclosed, the plan likely assumes Revenue improvement in H2 and margin gains based on H1 performance. By segment, Core Components forecast Revenue ¥6,540B (flat) and Operating Income ¥805B (+27.6%); Electronic Components Revenue ¥3,640B (flat) and Operating Income ¥210B (+187.0%); Solutions Revenue ¥9,328B (-12.9%) and Operating Income ¥876B (-15.7%) reflecting one-time gain reversal. Segment profit total is forecast ¥1,891B (+41.9%), and corporate/other segment is expected at ¥69B (down -57.9% from prior ¥358B). Input cost increases (rare metals, rare earths, gold, semiconductor memory) have been reflected based on H2 FY2026 market prices, but risks from Middle East tensions affecting petroleum-derived inputs remain unquantified and not reflected. FX assumption is USD/JPY 150 (FY2026 actual 151), similar to prior year. Deviations from a standard progress rate (Q2 = 50%) could arise from the pace of margin improvements in Core Components/Electronic Components and the timing of Solutions disposals (completed Jan 2026). For FY2028 (Mar 2028) management targets Revenue ¥20,500B (+5.7%) and Operating Income ¥1,600B (+23.1%), aiming to achieve ROE 5.0%. Medium-term target for FY2031 (Mar 2031) is ROE 8.0%, driven by prioritized investments in advanced semiconductors and AI-related areas (targeting 2.8x Revenue growth in 2026–2031 and ~55% share in advanced semiconductor business) and reduction of policy-held equities to below 20% of equity.
Dividend policy will change from FY2027 to DOE (Dividend on Equity) 3.5% plus progressive dividend policy, aiming for long-term stable dividend increases. For FY2026 the company paid interim ¥25 and year-end ¥27 for annual ¥52; FY2027 forecast interim ¥26 and year-end ¥30 for annual ¥56 (+¥4). FY2026 dividend payout ratio is approximately 55.7% (Total dividends ¥697B / Profit Attributable to Owners of Parent ¥1,410B; the difference vs XBRL financial data showing dividends paid ¥722B is likely rounding/adjustment). FY2027 forecast payout ratio is approximately 58.9% (Dividend forecast ¥56 / EPS forecast ¥102.73 ≒ 54.5%, though total dividends ≈ ¥750B / Profit Attributable to Owners of Parent forecast ¥1,410B ≒ 53.2%). FCF coverage is extremely strong at 4.30x (FCF ¥3,008B / dividends paid ¥722B) for FY2026. The company completed a ¥2,000B share buyback authorized May 2025 (execution period May 2025–Mar 2026, upper limit) in FY2026. Furthermore, a ¥2,500B buyback was authorized May 2026 (execution period Apr 2026–Mar 2027), with planned cancellation of 91 million shares post-acquisition. Total shareholder return (dividends + buybacks) for FY2026 was ≈ ¥2,722B, implying a Total Return Ratio of about 193% ((¥722B + ¥2,000B) / ¥1,410B), an extremely aggressive policy; FY2027 is planned to maintain a similar level ((¥750B + ¥2,500B) / ¥1,410B ≒ 230%). Versus FCF, FY2026 total return ¥2,722B has FCF coverage 1.10x and is roughly balanced; FY2027 total return ≈ ¥3,250B can be comfortably funded by projected OCF of ≈ ¥4,000B across FY2027–FY2028 (≈ ¥8,000B over two years). DOE 3.5% policy leverages a strong capital base (Equity Ratio 71.9%) to enhance shareholder returns. Reduction of policy holdings is in progress (sale of part of KDDI shares via TOB raising ≈ ¥2,500B, reducing policy holdings from 51.6% to 48.3% of equity), with a target to reduce to below 20% of equity by FY2031 to improve capital efficiency and secure shareholder-return resources.
【Short-term】
【Long-term】
Profitability & Return
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| ROE | 4.3% | 6.3% (3.2%–9.9%) | -2.0pt |
| Operating Margin | 5.7% | 7.8% (4.6%–12.3%) | -2.0pt |
| Net Margin | 14.5% | 5.2% (2.3%–8.2%) | +9.3pt |
Both Operating Margin and ROE are slightly below industry medians, while Net Margin is substantially above, indicating strong profit generation despite room to improve operating profitability.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 2.8% | 3.7% (-0.4%–9.3%) | -0.9pt |
Revenue growth slightly lags the industry median, but cost-structure reforms and shift to higher-value products likely position the company among higher-tier peers in profit growth.
※Source: Company compilation
Risk of delayed improvement in working capital efficiency: DSO 67 days, DIO 130 days, CCC 149 days are extended; inventory write-downs or receivables collection delays could pressure cash flow and profitability. If inventory optimization (inventory balance ≈ ¥5,220B) is not achieved, future FCF generation may fall short of plans.
Raw material price increases and procurement risk: Continued supply constraints and price increases for rare metals, rare earths, gold, and semiconductor memory, especially risks from Middle East tensions affecting petroleum-derived inputs, are difficult to quantify and are not reflected in forecasts. Under Revenue decline (-6.3% forecast for FY2027), inability to absorb cost increases could jeopardize the Operating Income target of ¥1,300B.
Execution risk of business disposals and integrations: Delays in completion of Chemical business disposal (expected end-Oct 2026), delayed synergy realization from integration of automotive camera/display businesses, and uncertain returns on additional equity contributions to associates (Investing CF -¥812B) could hinder medium-term ROE targets.
Operating margin improved +4.3pt and all segments achieved profitability, numerically validating restructuring outcomes. Notably, Core Components’ Operating Income ¥631B (prior year -¥19B) and Electronic Components ¥73B (prior year -¥8B) turned profitable, supported by rising demand for semiconductor-related parts and automotive MLCCs and internal cost optimization — an initial payoff to targeted investments in advanced semiconductors and AI-related areas (2026–2031 Revenue 2.8x plan).
Total Return Ratio ≈ 193% (dividends + buybacks ¥2,722B / Net Income ¥1,410B) reflects an extremely aggressive capital policy, maintained into FY2027. FCF coverage is 1.10x and roughly balanced, and the combination of high equity ratio (71.9%) and strong cash generation (OCF ¥2,262B) suggests sustainability. Shift to DOE 3.5% + progressive dividends and reduction in policy-held equities (target <20% of equity by FY2031) demonstrate strong commitment to capital efficiency and shareholder value.
Significant room exists to improve working capital efficiency (CCC 149 days); shortening DIO and strengthening receivables collection to raise Operating CF/EBITDA above 0.9x would enhance the likelihood of achieving ROE 5.0% in FY2028 and ROE 8.0% in FY2031. The near-term outlook targets Revenue -6.3% but Operating Income +10.0%, so sustaining cost optimization is critical.
This report is an AI-generated earnings analysis integrating XBRL financial statement data and PDF earnings presentation materials. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are compiled by our firm from public financial filings for reference. Investment decisions are your responsibility; consult a professional advisor as needed.