Murata Manufacturing (6981) Q4 2025 earnings summary

Executive summary

• FY2024 revenue reached 1,743.4 billion yen, up 6.3% year-over-year, driven by strong demand for capacitors and inductors in servers, computers, and mobility, despite declines in smartphone-related modules.

• Operating profit rose 29.8% year-over-year to 279.7 billion yen, aided by improved capacity utilization and cost reductions.

• Profit attributable to owners of parent increased 29.3% year-over-year to 233.8 billion yen.

• ROIC (pre-tax) improved to 13.0% from 10.0% in FY2023.

• One-time expenses included structural reform costs for the batteries business and impairment losses on MEMS inertial sensor manufacturing equipment.

Financial highlights

• Revenue exceeded the latest forecast by 2.6%, mainly due to a weak yen and robust AI server component demand.

• Operating profit was 6.8% below the latest forecast, impacted by lower capacity utilization and unanticipated one-time expenses.

• Gross margin rose to 41.2% from 38.8% year-over-year; operating margin improved to 16.0% from 13.1%.

• Basic EPS was 125.08 yen, up 30.7% year-over-year, reflecting a three-for-one stock split.

• Inventories decreased by 30.2 billion yen year-over-year, remaining within an appropriate range.

Outlook and guidance

• FY2025 revenue projected at 1,640.0 billion yen, down 5.9% year-over-year, mainly due to yen appreciation and reduced adoption in single-year smartphone models.

• Operating profit forecast to decline 21.3% to 220.0 billion yen, with ongoing price declines, strong yen, and higher fixed costs as key headwinds.

• Annual dividend planned at 60 yen per share, up 3 yen from FY2024, and a share buyback up to 100.0 billion yen, the largest in company history.

• Capital expenditures for FY2025 set at 270.0 billion yen, a significant increase for land and building investments.

• Net profit for FY2025 forecast at 177.0 billion yen.