| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥2690.1B | ¥2853.9B | -5.7% |
| Operating Income / Operating Profit | ¥116.0B | ¥96.2B | +20.6% |
| Ordinary Income | ¥138.1B | ¥107.7B | +28.2% |
| Net Income / Net Profit | ¥133.1B | ¥107.9B | +23.4% |
| ROE | 12.6% | 11.0% | - |
For the fiscal year ending March 2026, TACHI-S reported Revenue of ¥2,690.1B (YoY -¥163.9B -5.7%), Operating Income of ¥116.0B (YoY +¥19.8B +20.6%), Ordinary Income of ¥138.1B (YoY +¥30.4B +28.2%), and Net Income attributable to owners of the parent of ¥92.97B (YoY -¥20.1B -17.8%). Despite the decline in sales, the company achieved a significant increase in profit at the operating stage, with an Operating Income margin improving to 4.3% (up +0.9pt from 3.4% in the prior year), indicating improved profitability. The gain rate at the ordinary income level exceeded that of operating income, aided by improved financial income/expense. Conversely, Net Income declined due to negative non-recurring items (reduced gains on sale of investment securities and recording of business restructuring costs) and an increase in profit attributable to non-controlling interests. Regionally, Southeast Asia drove high growth with Revenue +38.9% and Operating Income +78.7%, North America turned from a loss to profit, and China saw a large revenue decline but significant margin improvement. Cash flow was solid with Operating Cash Flow of ¥135.8B (YoY +39.1%), and Free Cash Flow of ¥100.0B was secured. Progress against the full-year forecast (Revenue ¥2,700B, Operating Income ¥120B) was generally on track with Revenue at 99.6% and Operating Income at 96.7% of target.
Revenue of ¥2,690.1B (YoY -5.7%) was affected by revenue declines in major regions. By region, Japan ¥1,143.1B (-6.5%) reflected softness in domestic auto production, and North America ¥415.9B (-5.7%) showed a similar trend. China ¥178.4B (-39.4%) experienced a significant decline, hit by structural changes and intensified competition in the Chinese auto market. Latin America ¥1,043.5B (-0.9%) saw a slight decrease. Conversely, Southeast Asia maintained high growth at ¥77.8B (+38.9%), demonstrating the diversification effect of the regional portfolio. Segmental Revenue composition was Japan 40.4%, Latin America 38.8%, North America 15.5%, China 6.6%, Southeast Asia 2.9%. External factors likely included OEM production cuts and model change timing.
Cost of sales of ¥2,372.3B (prior year ¥2,556.3B, -7.2%) was suppressed beyond the sales decline, improving Gross Profit margin to 11.8% (up +1.4pt from 10.4% prior year). SG&A was ¥201.7B (prior year ¥201.4B, flat), contributing to improved Operating Income margin through fixed-cost containment despite lower sales. Operating Income of ¥116.0B (+20.6%) reflected gross margin improvement and cost control. Regionally, Southeast Asia posted the highest margin at 13.3%, followed by Japan 5.4%, China 9.1%, Latin America 2.2%, North America 1.2%, showing wide dispersion. Non-operating income was ¥26.7B (prior year ¥21.5B), with increases mainly from interest income ¥6.4B and foreign exchange gains ¥7.1B. Non-operating expenses halved to ¥4.7B (prior year ¥10.0B), with interest expense minor at ¥3.8B (prior year ¥4.0B). Ordinary Income of ¥138.1B (+28.2%) reflected operating profit growth plus improved financial results. Extraordinary income was ¥5.8B, led by gain on sale of investment securities ¥5.1B, but declined substantially from prior-year fixed asset sale gains of ¥34.2B. Extraordinary losses of ¥11.1B (impairment loss ¥3.8B, business restructuring costs ¥10.6B) were recorded; although reduced from ¥16.0B prior year, they remained a negative factor. Profit before tax was ¥132.8B (prior year ¥155.0B, -14.3%), with income taxes of ¥35.7B (effective tax rate 26.9%), leading to Net Income of ¥133.1B (+23.4%). Within this, profit attributable to non-controlling interests was ¥4.2B (prior year -¥4.4B, turned to positive), resulting in Net Income attributable to owners of the parent of ¥92.97B (-17.8%). In conclusion, the company moved away from a revenue-down profit-down phase: despite lower sales, cost optimization and improved regional mix produced operating profit growth, but temporary items and changes in non-controlling interests caused final profit to decline — a structure of revenue-down/operating-profit-up and revenue-down/net-profit-down.
Japan segment: Revenue ¥1,143.1B (-6.5%), Operating Income ¥61.5B (-9.5%), margin 5.4%. Profitability deteriorated at least in line with revenue decline, suggesting domestic production drops and fixed-cost absorption issues. Latin America: Revenue ¥1,043.5B (-0.9%) with a small decline, but Operating Income ¥23.4B (-22.4%) and margin worsened to 2.2%, possibly due to price competition and rising costs. North America: Revenue ¥415.9B (-5.7%), Operating Income ¥5.1B (+884.6%) — a large improvement from prior-year loss, converting to margin 1.2%, driven by productivity improvements and new orders. China: Revenue ¥178.4B (-39.4%) with a steep decline, yet Operating Income ¥16.2B (+368.8%) and margin recovered to 9.1%, likely due to order structure revisions and trimming unprofitable projects. Southeast Asia: Revenue ¥77.8B (+38.9%), Operating Income ¥10.3B (+78.7%), margin 13.3% — the highest profitability across segments, reflecting high value-add in growth markets. Of the consolidated Operating Income ¥116.0B, contribution breakdown was Japan 53.0%, Latin America 20.2%, China 14.0%, Southeast Asia 8.9%, North America 4.4% — Japan remains the pillar, while high profitability in Southeast Asia and China contributed to overall margin improvement.
Profitability: Operating Income margin 4.3% (prior year 3.4% +0.9pt), Net Income margin 3.5% (prior year 4.0% -0.5pt), ROE 12.6% (prior year 12.2% +0.4pt), ROA 8.1% (prior year 6.1% +2.0pt). Operating margin improved due to Gross Profit margin gains and SG&A containment, and ROA rose significantly from asset compression and profit improvement. ROE inched up, with decreased Net Income margin offset by stable asset turnover and leverage. Cash quality: Operating Cash Flow to Net Income ratio 1.02x (Operating Cash Flow ¥135.8B / Net Income ¥133.1B) indicating strong cash backing. Operating Cash Flow to Operating Income ratio 1.17x, accrual ratio -0.2% — revenue quality is healthy. Interest coverage 30.4x (Operating Income ¥116.0B / Interest expense ¥3.8B) shows minimal interest burden. Investment efficiency: Total asset turnover 1.58x (Revenue ¥2,690.1B / Average total assets ¥1,706.5B) slightly down from 1.66x prior year but remains high. Capital expenditure to depreciation ratio 0.93x (CapEx ¥47.8B / Depreciation ¥51.2B) indicates replacement-focused investment. Financial soundness: Equity Ratio 62.2% (prior year 56.0% +6.2pt), Current Ratio 216.5% (prior year 181.7% +34.8pt), Quick Ratio 213.1% (prior year 174.4% +38.7pt) — liquidity and capital base both substantially improved. Short-term borrowings reduced to ¥0.46B (prior year ¥71.0B), cash balance ¥456.8B (prior year ¥436.8B), resulting in net cash position effectively. Interest-bearing debt (bonds ¥40.1B, short-term borrowings ¥0.46B) is small, with Debt/Equity 0.04x — extremely conservative.
Operating Cash Flow was ¥135.8B (prior year ¥97.6B +39.1%), contributed by higher Operating Income and improved working capital. From subtotal ¥153.7B, inventory decrease (cash inflow) ¥27.8B, accounts receivable increase (cash outflow) -¥28.9B, accounts payable decrease (cash outflow) -¥9.3B — working capital changes largely offset. After income tax payments -¥39.6B, Operating Cash Flow remained robust. Investing Cash Flow was -¥35.9B: CapEx -¥47.8B offset by proceeds from sale of securities ¥32.1B and sale of subsidiary shares ¥35.6B, limiting net outflow. Free Cash Flow was ¥100.0B (Operating Cash Flow ¥135.8B + Investing Cash Flow -¥35.9B), ample to cover dividend payments ¥35.9B and debt repayments. Financing Cash Flow was -¥123.7B, driven by net decrease in short-term borrowings -¥82.9B, long-term debt repayments -¥55.0B, and dividend payments -¥35.9B. Ending cash rose to ¥456.8B (prior year ¥436.8B +¥20.0B); factoring in foreign exchange effects of ¥33.6B, the net increase was ¥9.8B. Operating Cash Flow / Revenue ratio 5.0% and Operating Cash Flow / EBITDA 0.81x improved YoY, indicating stable cash generation. Working capital turnover days: Receivables 59 days, Inventory 2.5 days, Payables 45 days — reflecting the short-cycle nature of the seating & interior parts industry.
Core recurring earnings center on Operating Income ¥116.0B, and of Non-operating income ¥26.7B, main items were interest income ¥6.4B, dividend income ¥2.3B, foreign exchange gains ¥7.1B, and equity-method investment income ¥4.4B. Non-operating income accounted for 1.0% of Revenue, indicating high dependence on core operations. Temporary items: Extraordinary income ¥5.8B (gain on sale of investment securities ¥5.1B, gain on sale of fixed assets ¥0.5B) and Extraordinary losses ¥11.1B (impairment loss ¥3.8B, business restructuring costs ¥10.6B), netting to -¥5.3B. Prior year had Extraordinary income ¥63.3B (including gain on sale of fixed assets ¥34.2B), so this period saw a significant negative swing from one-offs. Ordinary Income ¥138.1B versus Net Income ¥133.1B shows small divergence, with a tax burden of 27% at an appropriate level. Comprehensive income ¥125.7B versus Net Income ¥133.1B difference of -¥7.4B, mainly due to translation adjustment +¥20.9B being offset by adjustments attributable to non-controlling interests. On accrual quality, Operating Cash Flow ¥135.8B / Net Income ¥133.1B = 1.02x provides strong backing, and Operating Cash Flow / EBITDA 0.81x is favorable despite working capital fluctuations. Increases in receivables and decreases in payables partially pressured cash, but inventory compression offset this, leaving overall earnings quality healthy.
Full-year forecast: Revenue ¥2,700B (actual ¥2,690.1B, progress 99.6%), Operating Income ¥120B (actual ¥116.0B, progress 96.7%), Ordinary Income ¥130B (actual ¥138.1B, progress 106.2%), Net Income attributable to owners of the parent ¥86B (actual ¥92.97B, progress 108.1%). Revenue and Operating Income landed roughly in line with guidance, while Ordinary Income and Net Income exceeded forecasts. Upside drivers included expanded foreign exchange gains and improved financial results, and better-than-assumed extraordinary items (although YoY swing is large, it was within control relative to initial guidance). Dividend forecast was initially ¥57.5 per share, but actual annual dividend was increased substantially to ¥105 (interim ¥51.9, year-end ¥53.1). Payout Ratio was 31.5% (calculated based on Net Income ¥133.1B and total dividends ¥35.9B), with enhanced dividend capacity due to Net Income upside. Revenue YoY change was forecast +0.4% but actual -5.7% (miss), while Operating Income YoY change forecast +3.4% vs actual +20.6% (significant beat), indicating that improvements in the earnings structure outpaced plan. Going forward, continued Southeast Asia growth, North American profit stabilization, and improved fixed-cost absorption in Japan are key to topline recovery, while the pace of demand recovery in China remains an uncertainty.
Annual dividend: ¥105 (interim ¥51.9, year-end ¥53.1), unchanged from prior-year annual dividend of ¥105 (interim ¥51.9, year-end ¥53.1). Total dividends ¥35.9B (prior year ¥34.2B), with a Payout Ratio of 31.5% (calculated using Net Income attributable to owners of the parent ¥92.97B and total dividends ¥35.9B ÷ average shares 34,305 thousand × dividend per share ¥105). The payout ratio is at a conservative level, and with Free Cash Flow ¥100.0B, dividend payments ¥35.9B are covered with coverage of 2.78x, indicating sustainability funded by internal funds. DOE (dividend on equity) is approximately 3.4% (total dividends ¥35.9B / ending shareholders’ equity ¥1,059.0B), showing a balanced capital efficiency perspective. No share buybacks were disclosed; shareholder returns are focused on dividends. The full-year forecast had assumed an annual dividend of ¥57.5, but in response to Net Income upside the company raised the dividend to ¥105 to strengthen shareholder returns. Future scope for further dividend increases will weigh Operating Cash Flow stability and allocation to growth investments (CapEx, M&A), but priority remains further Operating Income margin improvement (industry median 7.8% vs current 4.3%) and enhancement of capital efficiency.
Demand volatility risk from major OEMs: Although regional Revenue composition is diversified (Japan 40.4%, Latin America 38.8%, North America 15.5%), sales depend on OEM production plans and model change timing in each region. China segment recorded a large YoY decline of -39.4%; if structural changes in the Chinese auto market (EV shift, rise of domestic OEMs) continue, the revenue base in that region could further shrink. Lack of disclosure on order backlog and contract liabilities makes quantitative future revenue assessment difficult, posing a risk. While regional diversification functions to some degree, simultaneous revenue declines in major regions such as Japan and Latin America leave downside risk to consolidated sales.
Structural low gross and operating margins: Gross margin 11.8% and Operating Income margin 4.3% remain below the industry median (Operating Income margin 7.8%) despite improvement. The seating & interior parts sector is highly competitive, with limited pricing power and vulnerability to raw material and logistics cost volatility. Although gross margin improved +1.4pt this period, a resurgence of commodity prices or intensified price competition could quickly compress margins. With CapEx/Depreciation ratio 0.93x indicating replacement-focused investment, limited automation and labor-saving investment could constrain further reductions in labor and fixed costs.
Working capital management and cash flow volatility risk: Operating Cash Flow / EBITDA is 0.81x and improved YoY, but the structure is susceptible to large working capital swings. This period inventory compression contributed to cash generation, but receivables increased ¥28.9B and payables decreased ¥9.3B, which are negative factors. During OEM model changes and mass production ramp-ups, inventory and receivables can expand, temporarily worsening cash flow. Short-term borrowings have been substantially reduced, lowering liquidity risk, but large swings in Operating Cash Flow could constrain flexibility for dividends and growth investments.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Income margin | 4.3% | 7.8% (4.6%–12.3%) | -3.4pt |
| Net Income margin | 4.9% | 5.2% (2.3%–8.2%) | -0.2pt |
Operating margin lags the industry median by 3.4pt, highlighting price competition and cost-structure constraints as a specialized seat manufacturer. Net margin is near the median, but strengthening operating profitability remains a key challenge.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue growth rate (YoY) | -5.7% | 3.7% (-0.4%–9.3%) | -9.4pt |
Revenue growth underperforms the industry median by 9.4pt, impacted by reduced auto production in major regions and a sharp contraction in China. High growth in Southeast Asia (+38.9%) is positive but its contribution to the overall business is limited; restoring growth will be a focus next fiscal year.
※ Source: Company compilation
Achieving increased Operating Income despite reduced Revenue, with Operating Income margin improving +0.9pt to 4.3%, demonstrates progress in cost optimization and regional mix improvements. Gross margin rose to 11.8% (prior year 10.4% +1.4pt) and SG&A was contained. Regionally, high-margin segments expanded with Southeast Asia at 13.3% and China at 9.1%, and North America turned from a loss to profit (margin 1.2%). However, Operating Income margin remains 3.4pt below the industry median of 7.8%, meaning structural enhancement (product/customer mix revision, automation investment, improved price pass-through) is a medium-term evaluation axis.
Cash generation and financial soundness remain at high levels. Operating Cash Flow ¥135.8B (1.17x relative to Operating Income) provides strong cash backing, Free Cash Flow ¥100.0B covers dividend payments ¥35.9B with surplus. Short-term borrowings were reduced from ¥71.0B to ¥0.46B, cash balance ¥456.8B, producing an effective net cash position. Equity Ratio 62.2%, Current Ratio 216.5%, Quick Ratio 213.1% show robust liquidity and capital base; financial risk is very low. Payout Ratio 31.5%, FCF coverage 2.78x indicate high sustainability, allowing potential coexistence of dividend increases and growth investment.
Revenue growth rate -5.7% is 9.4pt below the industry median, with major markets Japan, North America, and China all posting declines. China’s -39.4% is a material contraction; if structural changes in the Chinese auto market persist, regional revenue base risk remains. Conversely, Southeast Asia grew +38.9% with the highest margin (13.3%), showing high value-add trends in growth markets. While full-year Revenue slightly missed guidance, Operating Income was largely achieved and Ordinary/Net Income beat, indicating earnings-structure improvements exceeded plan. Key drivers for next fiscal year recovery are sustained Southeast Asia growth, North American profit stabilization, and improved fixed-cost absorption in Japan. With CapEx/Depreciation ratio 0.93x indicating replacement investment emphasis, accelerating automation and labor-saving investments will be a turning point for competitiveness over the long term.
This report is an earnings analysis document automatically generated by AI from XBRL earnings release data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company based on public financial statements. Investment decisions are your responsibility; please consult a professional as needed before acting.