W-SCOPE (6619) Q4 2025 earnings summary

Executive summary

• Sales for FY ending Jan 2025 were ¥31.0bn, down 35.4% YoY, mainly due to the deconsolidation of WCP and weak demand in key markets.

• Net sales for the year ended January 31, 2025, were ¥48,043 million, up 54.8% YoY, with significant growth in operating and ordinary income as well as net income attributable to owners of parent.

• Operating profit fell by ¥4.8bn YoY, with a net loss of ¥1bn, impacted by inventory valuation losses and lower sales volumes.

• Comprehensive income for the year was ¥11,540 million, a 16.5% increase YoY.

• Automotive battery sales dropped 25% YoY to ¥22.3bn, and consumer battery sales (excluding IEM) fell 53.4% YoY to ¥7.3bn.

Financial highlights

• Sales revenue decreased by ¥16.9bn YoY; cost of sales fell by ¥12.1bn, but inventory valuation losses totaled ¥14.9bn.

• EBITDA for FY25 Q4 was ¥4,110mil, down 35.8% YoY; operating margin dropped to 3.8%.

• Net profit attributed to parent shareholders was ¥3,713mil in FY25 Q4.

• Operating income rose to ¥3,865 million, up 50.6% YoY; ordinary income reached ¥4,600 million, up 44.5%.

• Net income attributable to owners of parent was ¥939 million, a 78.7% increase YoY.

Outlook and guidance

• FY2025 (ending Jan 2026) guidance projects sales of ¥5.4bn and an operating loss of ¥4.3bn, with recurring loss expected at ¥7.3bn.

• For the fiscal year ending January 31, 2026, net sales are forecast at ¥82.6 billion, with operating income of ¥4.3 billion and net income of ¥7.3 billion.

• Recovery in European EV market anticipated in H2, with new customer projects in Japan and expansion in energy storage system batteries.

• Net income per share is projected at ¥132.91 for the full year.

• FX sensitivity: ¥1 JPY/USD change impacts sales by approx. ¥38mil; ¥1 JPY/KRW1,000 change impacts OP by approx. ¥33mil.