Mitsui High-tec (6966) Q4 2026 earnings summary

Executive summary

• Net sales rose 1.6% year-over-year to JPY 218,329 million, driven by higher motor core and consumer product demand, but operating profit fell 21.0% to JPY 12,651 million and net profit dropped 74.2% to JPY 3,151 million due to impairment and extraordinary losses in Europe.

• The business environment saw gradual recovery, but uncertainty persisted due to global economic and geopolitical factors; BEV market growth slowed in Europe, while HEV/PHEV demand remained strong.

• The company changed its depreciation method to straight-line, increasing operating profit by JPY 2,222 million and reducing FY2025 depreciation expenses.

Financial highlights

• EBITDA decreased 14.8% year-over-year to JPY 26,032 million; EBITDA margin declined to 11.9%.

• Capital investment increased 21.2% year-over-year to JPY 30,116 million, with major investments in property, plant, and equipment for new products and capacity.

• Equity ratio at year-end was 47.0%.

• Free cash flow was negative JPY 4,637 million, down from negative JPY 2,144 million the previous year.

• Basic earnings per share was JPY 17.25, down from JPY 66.86 year-over-year.

Outlook and guidance

• FY2027 forecast: Net sales JPY 233,000 million (+6.7% YoY), operating profit JPY 11,000 million (-13.1% YoY), net profit JPY 7,000 million (+122.1% YoY), basic EPS JPY 38.30.

• Capital investment planned at JPY 41,000 million for FY2027.

• Dividend forecast for FY2027 is 19 yen per share, targeting DOE of 3.0%.

• Medium-term plan targets revised downward due to slower EV and semiconductor market recovery.

• Uncertainty remains in automotive and semiconductor demand, but profit growth is targeted by leveraging HEV demand and expanding production.