Nabtesco (6268) Q4 2025 earnings summary

Executive summary

• FY2025 net sales rose 9.8% year-over-year to 307.9 billion yen, with operating profit up 60% to 20.7 billion yen and margin improving to 6.7%.

• Net income attributable to owners increased 55% to 15.7 billion yen; basic EPS rose to 131.56 yen.

• Strategic restructuring included the split and sale of the hydraulic equipment business and withdrawal from unprofitable overseas operations.

• Project 10 and portfolio optimization initiatives drove profitability improvements, with further growth targeted in CMP and TRS segments.

• The hydraulic equipment business was classified as a discontinued operation from Q3, impacting segment reporting.

Financial highlights

• Gross profit improved to 93.8 billion yen, and total comprehensive income increased to 23.6 billion yen.

• ROIC improved to 4.4%, ROE to 5.8%, and operating margin to 6.7%.

• FY2026 forecast: sales up 6% to 327.0 billion yen, operating profit up 34% to 27.7 billion yen, OPM to 8.5%.

• Dividend per share planned to increase to 85 yen in 2025 and 90 yen in 2026.

• Cash flows from operating activities increased to 32.8 billion yen; cash and cash equivalents at year-end were 73.3 billion yen.

Outlook and guidance

• FY2026 expects continued profit growth, with net income forecast to rise 12% and EPS to 150.19 yen.

• All major business segments are projected to see sales and operating income growth, especially component and transport solutions.

• CMP segment to benefit from recovery in industrial robot demand and expansion into semiconductor and logistics markets.

• TRS segment to see growth from defense and commercial aircraft, and strong marine vessel demand.

• ACB and MFR segments anticipate stable or improved sales and margins, supported by MRO and new product launches.