NSK (6471) Q4 2025 earnings summary

Executive summary

• FY2024 sales increased 1.0% year-on-year to ¥796.7 billion, with operating income up 3.9% to ¥28.5 billion, supported by industrial machinery growth and yen depreciation, despite ¥4.6 billion in restructuring expenses and automotive sales decline.

• Net income attributable to owners of the parent was ¥12.4 billion, down 8.4% year-on-year, but including discontinued operations, net income rose 25.2% to ¥10.6 billion.

• The steering business was classified as discontinued operations, with related profits and losses reflected accordingly; reacquisition of NS&C planned.

• Structural reforms included labor force reduction and production reorganization in key regions.

• Business structure improvements and portfolio reforms contributed to profitability.

Financial highlights

• Operating income excluding one-time items was ¥36.4 billion, up 21.9% year-on-year.

• Dividend maintained at ¥34 per share for FY2024 and planned for FY2025.

• Net income for FY2025 forecasted at ¥7.0 billion, down 34.3% from previous year.

• Capex for FY2024 was ¥56.5 billion, with R&D expenses at ¥27.5 billion.

• Cash and cash equivalents at year-end were ¥138.3 billion, down ¥12.3 billion from prior year.

Outlook and guidance

• FY2025 (or FY2026) forecast: sales of ¥760.0 billion, operating income of ¥22.0 billion (¥30.5 billion excluding one-time expenses), and net income of ¥7.0 billion.

• Assumes flat volume, yen appreciation, and ¥6.5 billion in structural reform expenses.

• Dividend forecast maintained at ¥34 per share.

• Targets for 2026: ¥900 billion in sales, ¥75 billion operating income, ROE of 8%+.