TDK (6762) Q4 2025 earnings summary

Executive summary

• Achieved record high net sales and operating profit in FY March 2025, driven by strong ICT and HDD market demand and yen depreciation.

• Increased dividends for FY March 2025 and plan to maintain ¥30/share in FY March 2026, even under risk scenarios.

• Advancing medium-term plan with focus on ROIC, business portfolio management, and investments in AI ecosystem technologies.

• Overseas sales accounted for 92.1% of total, up 5.8% year-over-year.

• Hosting Investor Day in September 2025 to strengthen pre-financial capital and investor relations.

Financial highlights

• Net sales: ¥2,204.8bn, up 4.8% year-over-year; operating profit: ¥224.2bn, up 29.7% year-over-year.

• Net profit attributable to owners: ¥167.2bn, up 34.1% year-over-year; EPS: ¥88.10 (post-share split basis).

• Operating profit margin improved to 10.2% from 8.2% year-over-year; gross profit margin rose to 31.2%.

• Free cash flow: ¥201.0bn, down ¥29.4bn year-over-year; cash and equivalents at year-end: ¥697.3bn.

• R&D expenses: ¥253.6bn (11.5% of net sales), up 34.3% year-over-year; capex: ¥225.3bn, up 3.1%.

Outlook and guidance

• FY March 2026 base scenario: net sales ¥2,200.0bn (flat), operating profit ¥225.0bn (+0.4%), net profit ¥170.0bn (+1.7%).

• Risk scenario: net sales ¥2,120.0bn (-3.8%), operating profit ¥180.0bn (-19.7%), net profit ¥135.0bn (-19.2%).

• Annual dividend forecast maintained at ¥30/share in both scenarios.

• Free cash flow expected to decline sharply to ¥70.0bn (base) or ¥35.0bn (risk).

• Uncertainty remains high due to global tariff changes and economic volatility.