Murata Manufacturing (6981) Q3 2026 earnings summary

Executive summary

• Revenue for Q3 FY2025 was ¥467.5B, up 4.3% year-on-year, and 9-month revenue rose 2.9% to ¥1,370,232 million, driven by strong capacitor sales for servers and AI/data centers, despite declines in high-frequency modules and smartphone-related products.

• Operating profit fell 50% year-on-year to ¥37.9B in Q3 and declined 13.3% to ¥203,012 million for the 9-month period, mainly due to a ¥43.8B impairment loss on SAW filter-related goodwill.

• Full-year FY2025 revenue is projected at ¥1,800B, up from previous forecasts, while operating profit is expected to be ¥270B, down due to impairment losses.

• Comprehensive income remained stable at ¥243,614 million, supported by exchange differences.

Financial highlights

• Q3 FY2025 revenue: ¥467.5B (+4.3% YoY); operating profit: ¥37.9B (–50.2% YoY); profit before tax: ¥49.5B (–52.6% YoY); profit attributable to owners: ¥25.0B (–64.8% YoY).

• 9-month FY2025 revenue: ¥1,331.5B (+2.9% YoY); operating profit: ¥203.0B (–13.3% YoY).

• Gross profit increased to ¥575,719 million, but operating margin dropped to 14.8% from 17.6% YoY.

• Basic earnings per share decreased to ¥85.68 from ¥107.56 YoY.

• Total assets grew to ¥3,091,516 million, and equity attributable to owners reached ¥2,614,432 million.

Outlook and guidance

• FY2025 revenue forecast raised to ¥1,800B, reflecting yen depreciation and robust demand for AI server and smartphone components.

• Operating profit forecast lowered to ¥270B due to significant impairment losses; profit before tax revised upward to ¥294B on FX gains.

• Annual dividend projected at ¥60 per share, up from ¥57 in FY2024.

• Assumed exchange rate for Q4 is 150 yen/USD.