NHK Spring (5991) Q4 2026 earnings summary

Executive summary

• Net sales for FY2026 rose to ¥816.8 billion, up 1.9% year-over-year, but operating profit declined by 12.2% to ¥45.7 billion and profit attributable to owners fell 42.2% to ¥27.8 billion, with EPS at ¥137.46.

• Extraordinary profits increased due to gains on sale of investment securities and return of retirement benefit trust, but extraordinary losses also rose from impairment and valuation losses.

• Automotive and seating segments saw sales declines, while disk drive suspension and industrial machinery segments posted sales growth but lower profits due to higher costs.

• Cash flows from operating activities increased 39.0% year-over-year to ¥77,446 million, and cash and cash equivalents at year-end rose 10.0% to ¥89,963 million.

Financial highlights

• Operating profit margin decreased to 5.6% from 6.5% year-over-year.

• ROE dropped to 6.6% from 11.9% year-over-year; ROIC was 6.8%.

• Dividend per share for FY2026 was ¥66.0, with a payout ratio of 48.0%.

• Shareholders’ equity ratio improved to 59.3%.

• Net assets per share increased to ¥2,125.20.

Outlook and guidance

• FY2027 forecast: net sales of ¥860 billion (+5.3%), operating profit of ¥59 billion (+28.9%), profit attributable to owners of ¥45 billion (+61.5%), ROE 10.1%, ROIC 8.1%.

• EPS projected at ¥222.12, with a dividend forecast of ¥69.0 per share (payout ratio 31.1%).

• All business segments except Automotive Suspension Springs are expected to grow in both sales and profit.