Johnson Electric (179) Q4 24/25 earnings summary

Executive summary

• Sales revenue reached US$3.6 billion for FY24/25, with net income of US$263 million, serving 1,500 customers globally and producing over 4 million products daily.

• Group sales declined 4% year-over-year to US$3,648 million, with both APG and IPG experiencing lower sales due to reduced automotive production and weak consumer demand.

• Net profit attributable to shareholders rose 15% to US$263 million, with adjusted net profit at US$274 million, reflecting improved gross margin and lower tax rate.

• Johnson Electric operates in over 20 countries, employs 30,000+ people, and maintains a diversified customer base across automotive and industrial sectors.

• Free cash flow from operations fell to US$286 million from US$422 million, impacted by lower sales and higher capital expenditure.

Financial highlights

• Gross profit was US$843 million (23.1% margin), up from 22.3% last year due to lower raw material and labor costs.

• Adjusted EBITA reached US$344 million (9.4% margin), slightly above last year’s 9.0%.

• Diluted EPS increased to 28.16 US cents from 24.71 US cents year-over-year.

• Cash reserves at year-end were US$791 million; net cash position improved to US$431 million.

• Total debt to capital ratio decreased to 12% from 18% year-over-year.

Outlook and guidance

• Group sales in the first weeks of FY25/26 are mid-single digit percentage lower year-over-year; no full-year sales projection provided due to market uncertainty.

• Management is proactively mitigating tariff impacts through pricing, production relocation, and scenario planning.

• The company remains confident in its ability to navigate macroeconomic volatility, citing a 66-year track record.

• Strategic focus includes driving sales growth, accelerating speed to market, consolidating regional manufacturing, and leveraging digital technologies.