RIX CORPORATION (7525) Q4 2026 earnings summary

Executive summary

• Net sales reached a record high for the fifth consecutive year in FY2025, rising 2.0% year-over-year to ¥55,827 million, but operating and ordinary profits declined year-over-year for the first time in five years due to increased SG&A expenses from growth investments.

• Profit attributable to owners of parent rose 11.9% year-over-year to ¥3,180 million, supported by extraordinary income from the sale of former headquarters' land and buildings.

• Comprehensive income surged 40.3% year-over-year to ¥4,147 million.

• Growth was driven by strong performance in the Automobile, Electronics & Semiconductor, and Machine Tools segments, with original products contributing significantly.

• The company executed its medium-term plan “GP2026” amid global economic uncertainty.

Financial highlights

• FY2025 net sales: ¥55,827 million (+2.0% YoY); gross profit: ¥14,747 million (+8.5% YoY); operating profit: ¥3,537 million (−8.9% YoY); ordinary profit: ¥3,897 million (−7.2% YoY); profit attributable to owners of parent: ¥3,180 million (+11.9% YoY).

• Gross profit and gross profit ratio continued an upward trend, with the cost of sales ratio improving by 1.7% due to higher original product sales.

• Basic earnings per share rose to ¥392.47 from ¥351.00 year-over-year.

• Equity ratio improved to 60.4% from 58.2% year-over-year.

• Cash and cash equivalents at year-end were ¥6,753 million, up from ¥6,568 million.

Outlook and guidance

• FY2026/FY2027 forecasts: net sales ¥58,000 million (+3.9%), operating profit ¥4,220 million (+19.3%), ordinary profit ¥4,360 million (+11.9%), profit attributable to owners of parent ¥3,000 million (−5.7% due to absence of prior year extraordinary income).

• Double-digit profit growth expected, led by Electronics & Semiconductor and Machine Tools segments.

• Dividend forecast raised to ¥162 per share, with a DOE of 4.5% or payout ratio of 40%, whichever is higher.

• Potential risks from Middle East instability and rising prices have been factored into SG&A, but not into sales forecasts.

• Profit attributable to owners is expected to decrease due to the absence of extraordinary income.