Tokyo Seimitsu (7729) Q4 2026 earnings summary

Executive summary

• Sales reached ¥166.8B for FY2026/3, up 11% YoY, with orders at ¥163.1B, up 12% YoY, driven by strong HPC-related demand in the SPE segment and robust Metrology demand.

• Net profit attributable to owners was ¥24.7B, down 3.5% YoY due to an extraordinary loss for countermeasures against potential future defects in the SPE segment.

• The company completed the Nagoya Plant to expand manufacturing capacity and continued R&D investments, focusing on high-value probers and production capacity.

• Both SPE and Metrology segments are expected to align with mid-term plan premises, with strong demand and value-added products supporting sales and profit growth.

• Dividend per share increased to ¥262, up ¥9 YoY, with a payout ratio of 43.2%.

Financial highlights

• Operating profit for FY2026/3 was ¥33.7B, up 14% YoY, with an operating margin of 20%.

• Recurring profit rose 16% YoY to ¥34.8B; net profit was ¥24.7B, down 4% YoY.

• R&D expenses increased 16% YoY to ¥12.0B; capex rose 8% to ¥11.1B; depreciation was ¥5.6B, up 9%.

• Gross profit margin improved to 20.2%, with gross profit at ¥68.9B.

• Total assets increased to ¥249.9B, and net assets rose to ¥192.2B.

Outlook and guidance

• FY2027/3 sales are forecast at ¥181.5B (+9% YoY), with operating profit at ¥40.0B (+19% YoY) and net profit at ¥28.0B (+13% YoY).

• SPE segment sales expected to rise 11% YoY to ¥141.5B; Metrology sales to increase 3% to ¥40.0B.

• Dividend per share projected at ¥276 (+¥14 YoY), with interim and year-end dividends at ¥138 each.

• Strong demand for HPC, memory, and logic expected to drive growth, with robust 2H business anticipated.

• Metrology segment to see moderate growth, especially in hybrid vehicles and aerospace/defense.