Organo (6368) Q4 2025 earnings summary

Executive summary

• Net sales rose 8.6% year-over-year to ¥163.3 billion, with operating profit up 38.0% to ¥31.1 billion and profit attributable to owners of parent up 39.5% to ¥24.2 billion, all reaching record highs.

• Orders received increased 4.7% year-over-year to ¥151.3 billion, driven by strong demand in Taiwan's electronics sector, though below initial plans, and the order backlog remains high at ¥105.8 billion.

• The electronics industry, the core market, saw robust demand for AI-related semiconductors, while other segments like EV and smartphones experienced stagnation.

• Investments in Japan, China, and Southeast Asia were delayed, but overseas demand, especially from Taiwan, remained strong.

Financial highlights

• Operating profit margin improved to 19.1% from 15.0% year-over-year, and gross profit margin rose by 4.1 points to 33.8%.

• ROE increased to 21.7%, up 3.3 points year-over-year.

• Basic earnings per share rose to ¥525.37 from ¥376.92 year-over-year.

• Equity-to-asset ratio improved to 62.2% from 55.8% the previous year.

• Cash and cash equivalents at year-end were ¥16,751 million, down ¥891 million from the previous year.

Outlook and guidance

• FY ending 03/2026 forecasts orders received at ¥180.0 billion (+19.0% YoY), net sales at ¥175.0 billion (+7.2% YoY), and operating profit at ¥31.5 billion (+1.2% YoY).

• Dividend per share is planned to increase to ¥170 (payout ratio 32.3%), up from ¥160.00 in FY2025.

• ROE is projected to be 18.8% for FY2026.

• SG&A expenses are expected to rise further, but profit levels are planned to be maintained through sales growth.

• Focus on large-scale semiconductor projects in Japan, Taiwan, and the U.S.