Shima Seiki Mfg (6222) Q4 2026 earnings summary

Executive summary

• Net sales for FY2025 increased 3.0% year-over-year to ¥33,509 million, with operating income at ¥-1,720 million and net income attributable to owners at ¥856 million.

• Operating loss narrowed significantly from ¥11,914 million in the prior year, and profit attributable to owners returned to positive from a loss of ¥14,275 million last year.

• Sales growth was driven by recovery in the Asia market, especially Bangladesh, and increased sales of high-efficiency models, while China and the Middle East saw weaker performance.

• WHOLEGARMENTⓇ flat knitting machines saw increased sales, with their share of the segment rising to 27% from 19% last year.

• Comprehensive income improved to ¥5,654 million from a loss of ¥13,844 million year-over-year.

Financial highlights

• Gross profit rose to ¥11,897 million from ¥8,633 million year-over-year.

• Ordinary profit turned positive at ¥288 million, up from a loss of ¥11,481 million.

• Cash and deposits increased to ¥21,295 million, up ¥7,166 million from the previous period.

• Net assets increased to ¥82,382 million, up from ¥77,740 million year-over-year.

• Cash and cash equivalents at year-end rose to ¥15,617 million from ¥10,363 million.

Outlook and guidance

• FY2026 net sales are forecast at ¥41,000 million, a 22.4% increase year-over-year, with operating income projected at ¥300 million to ¥1,000 million and net income at ¥900 million.

• Flat Knitting Machines segment expected to grow 29.7% in sales, with operating income of ¥5,100 million.

• Basic earnings per share forecasted at ¥26.53 for the next fiscal year.

• Exchange rate assumptions for FY2026: JPY/USD at 157, JPY/EUR at 183.