DENSO (6902) Q4 2025 earnings summary

Executive summary

• Revenue rose 0.2% year-over-year to ¥7,161.8 billion, driven by yen depreciation and R&D recovery despite slow Asian vehicle sales and production suspensions.

• Operating profit surged 36.4% to ¥519.0 billion, aided by cost reductions and favorable currency effects.

• Profit attributable to owners increased 34.0% to ¥419.1 billion; basic EPS was ¥145.02.

• Comprehensive income turned negative at ¥(136.6) billion due to large fair value losses on equity instruments.

Financial highlights

• Operating profit margin improved to 7.2% from 5.3% year-over-year.

• Net cash from operating activities was ¥758.7 billion, down from ¥961.8 billion the prior year.

• Cash and cash equivalents at year-end increased to ¥986.5 billion.

• Equity ratio remained strong at 61.3%.

Outlook and guidance

• FY2026 revenue forecast to decline 1.6% to ¥7,050.0 billion due to stronger yen assumptions.

• Operating profit projected to rise 30.1% to ¥675.0 billion; profit attributable to owners expected at ¥515.0 billion (+22.9%).

• Full-year dividend forecast maintained at ¥64.00 per share.

• Exchange rate assumptions: 1USD = 145 yen, 1EUR = 160 yen.