Taiyo Holdings (4626) Q4 2025 earnings summary

Executive summary

• Net sales rose 14% year-over-year to ¥119,010 million, with operating income up 21% and net income up 25% for FY2025/3.

• Electronics segment saw strong overseas demand, especially in China, and benefited from a weaker yen.

• Medical & Pharmaceuticals segment increased sales but saw a 37% drop in segment profit due to impairment losses.

• Shareholder return policy revised to target a 100% consolidated total payout ratio through FY2028/3, maintaining DOE above 5%.

Financial highlights

• Operating income reached ¥22,067 million (21% YoY increase), ordinary income ¥21,577 million (25% YoY), and EBITDA ¥31,709 million (17% YoY).

• Basic earnings per share increased to ¥193.18 from ¥154.89 year-over-year.

• Net assets per share rose to ¥1,854.68, and the equity ratio improved to 53.6%.

• ROE and ROIC improved, with ROE at 14.6% and ROIC at 10.6%.

• Cash and cash equivalents at year-end decreased to ¥44,052 million from ¥57,664 million.

Outlook and guidance

• FY2026/3 consolidated net sales forecast at ¥123,400 million (+4%), operating income at ¥23,300 million (+6%), and net income at ¥16,000 million (+48%).

• Electronics sales expected to remain flat or slightly decline due to exchange rate assumptions and lower display-related demand.

• Medical & Pharmaceuticals to rise 12% in net sales and 124% in operating income, driven by new contracts and reduced amortization.

• Yen appreciation (assumed 145.0 JPY/USD) expected to negatively impact earnings.