NOK (7240) Q4 2025 earnings summary

Executive summary

• Net sales increased 2.2% year-over-year to ¥766.9 billion, with operating income up 62.6% to ¥37.3 billion, surpassing forecasts, while net income declined 4.1% due to a prior-year divestiture gain.

• Electronic Product business returned to profitability for the first time since FY2017, with net sales up 3.1% to ¥371.0 billion and operating income at ¥8.9 billion.

• Seal segment net sales were flat at ¥362.7 billion, but operating income rose 12.4% to ¥26.2 billion due to improved costs and price revisions.

• Other segment net sales increased 18.2% to ¥33.2 billion, with operating income up 239.8% to ¥2.1 billion.

• Annual dividend per share was revised upward by ¥5 to ¥105, with a forecast of ¥110 for FY2025.

Financial highlights

• Operating margin improved from 3.1% to 4.9% year-over-year.

• Ordinary income rose 19.3% to ¥48.1 billion.

• Capital expenditure increased to ¥52.4 billion, with depreciation at ¥46.9 billion.

• Operating cash flow was ¥91.6 billion, investing cash flow negative ¥43.2 billion, and financing cash flow negative ¥48.2 billion.

• Cash and cash equivalents at year-end were ¥136.1 billion.

Outlook and guidance

• FY2025 forecast: net sales ¥707.1 billion (down 7.8%), operating income ¥37.7 billion (up 1.2%), net income ¥36.5 billion (up 20.4%), and dividend per share ¥110.

• Seal sales expected to decline 1.3% but operating income to rise 1.1%; Electronic Product sales to drop 14.3% but operating income to increase 12%.

• Exchange rate assumption for FY2025 is ¥140/USD.

• Hard disk drive sales expected to remain steady on data center demand; US tariff impact seen as limited.