Tsubakimoto Chain (6371) Q4 2025 earnings summary

Executive summary

• Net sales increased 4.6% year-over-year to ¥279.2 billion, with operating income up 7.5% to ¥22.85 billion and net income up 19.2% to ¥22.12 billion, surpassing forecasts.

• Overseas sales ratio remained stable at 65.3%, with notable growth in the Americas and Europe, while the weaker yen supported results.

• Strong performance in Chain, Mobility, and Motion Control segments offset sluggish demand in China.

• Comprehensive income fell 57.2% year-over-year to ¥18,562 million due to a sharp drop in other comprehensive income.

Financial highlights

• FY2024 net sales: ¥279.2 billion (+4.6% YoY), operating income: ¥22.85 billion (+7.5% YoY), net income: ¥22.12 billion (+19.2% YoY).

• Operating profit margin improved to 8.2%, ordinary profit margin at 9.1%, and ROE at 8.5%.

• Basic EPS was ¥212.65, up from ¥170.55 year-over-year (post-split).

• Equity ratio increased to 69.9% from 66.0% year-over-year.

• All major segments posted sales growth; material handling returned to profitability.

Outlook and guidance

• FY2025 net sales forecast: ¥290 billion (+3.9% YoY), operating income expected to decline by 5.9% due to US tariffs and other factors.

• Net income projected at ¥20 billion (–9.6% YoY), with extraordinary gain from sale of policy-held shares and business integration impact.

• Dividend policy targets payout ratio of at least 35%; annual dividend for FY2025 is ¥80/share post-split.

• Material handling and motion control segments expected to improve profitability, while mobility income is forecast to decrease.