Daido Metal (7245) Q4 2025 earnings summary

Executive summary

• Net sales reached JPY 136.3 billion for FY2025/3, up 5.9% year-over-year, with operating profit rising 16.5% to JPY 7.09 billion and profit attributable to owners of parent up 5.9% to JPY 2.72 billion.

• Ordinary profit increased 17.1% to JPY 6.82 billion, and operating profit margin improved to 5.2%.

• Growth was driven by sales increases, price pass-through, cost improvements, and strong demand in Asia and North America.

• Comprehensive income declined 31.8% year-over-year to JPY 6.39 billion.

• Segment classification was revised, with some automotive engine bearings reclassified to non-automotive bearings.

Financial highlights

• Gross profit increased to JPY 33.76 billion from JPY 31.30 billion year-over-year.

• Net assets to total assets improved to 37.0%, up 0.5pt year-over-year.

• Net interest-bearing debt increased 13.0% to JPY 36.65 billion.

• Cash and cash equivalents at year-end were JPY 25.02 billion, up from JPY 24.59 billion.

• Cash flows from operating activities decreased to JPY 10.92 billion from JPY 16.66 billion year-over-year.

Outlook and guidance

• FY2026/3 net sales forecasted at JPY 134.0 billion, down 1.7% year-over-year, with operating profit expected to rise 12.8% to JPY 8.0 billion and profit attributable to owners of parent projected to increase 28.7% to JPY 3.5 billion.

• Ordinary profit forecasted at JPY 7.0 billion, up 2.6% year-over-year.

• Annual dividend forecast for FY2026 is JPY 24.00 per share, up from JPY 18.00 in FY2025.

• Cost and manufacturing improvements to offset profit decreases from lower sales and higher costs.