Azbil (6845) Q3 2026 earnings summary

Executive summary

• Orders received remained stable year-over-year, with significant growth in the BA segment offsetting the impact of the Azbil Telstar (ATL) transfer; net sales decreased due to the transfer, but operating income rose due to profitability measures.

• Excluding the ATL transfer, both orders received and net sales effectively increased year-over-year.

• Operating income rose 9.1% to ¥29,226 million, and ordinary income increased 9.5% to ¥30,717 million, reflecting enhanced profitability and cost pass-through measures.

• Net income attributable to owners of parent fell 21.0% to ¥22,678 million, primarily due to the previous year's extraordinary gain from the sale of Azbil Telstar.

• The company is maintaining its upwardly revised FY2025 financial plan, driven by strong BA and AA business performance.

Financial highlights

• Orders received: ¥231.1B (flat year-over-year); net sales: ¥208.0B (down 4.5%); operating income: ¥29.2B (up 9.1%); ordinary income: ¥30.7B (up 9.5%).

• Gross profit margin improved to 46.5% (up 3.4pp); operating income margin rose to 14.0% (up 1.7pp).

• Net income attributable to owners of parent fell to ¥22.6B (down ¥6.0B), mainly due to a one-time gain in the prior year from the ATL sale.

• Shareholders' equity ratio increased to 77.8% from 75.3% at the end of FY2024.

• Total assets decreased to ¥303,899 million, mainly due to lower cash and deposits.

Outlook and guidance

• No changes to the upwardly revised FY2025 plan: net sales projected at ¥298.0B (down 0.8% year-over-year), operating income at ¥45.5B (up 9.7%), and net income at ¥33.5B (down 18.2% due to prior year one-time gain).

• BA and AA segments expected to grow, offsetting the ATL transfer impact; LA segment to see lower revenue and profit.

• Dividend to increase for the eleventh consecutive year to ¥26 per share; DOE to reach 5.6%.