Citizen Watch Co. (7762) investor relations material

Executive summary

• Sales and profit increased year-over-year for both the full year and 4Q FY2025, with strong performance in Watches and Machine Tools, especially in North America and overseas markets.

• FY2026 is forecasted to achieve Medium-term Management Plan targets for net sales and operating margin one year ahead of schedule.

• Profit attributable to owners of parent increased 30.3% year-over-year to ¥31.1 billion, despite extraordinary losses from U.S. customs duties.

• Comprehensive income surged 159.9% year-over-year to ¥48.3 billion, reflecting strong foreign currency translation gains.

• Dividend per share is set to increase by 3 yen to 50 yen for FY2026.

Financial highlights

• FY2025 net sales rose 9.4% to ¥346.8B; operating profit up 46.9% to ¥30.2B; ordinary profit up 67.0% to ¥38.4B; profit attributable to owners up 30.3% to ¥31.1B.

• 4Q FY2025 net sales increased 19.3% YoY to ¥89.7B; operating profit up 308.9% to ¥6.3B; profit attributable to owners up 431.9% to ¥8.8B.

• Gross profit increased to ¥149.5 billion from ¥134.6 billion year-over-year.

• Cash and cash equivalents at year-end totaled ¥103.9 billion, up ¥11.3 billion year-over-year.

• Net assets per share rose to ¥1,201.61 from ¥1,049.41 year-over-year.

Outlook and guidance

• FY2026 net sales forecasted at ¥362.0B (+4.4% YoY); operating profit at ¥34.5B (+14.0% YoY); operating margin at 9.5%.

• FY2027 guidance: net sales ¥362.0 billion (+4.4%), operating profit ¥34.5 billion (+14.0%), ordinary profit ¥37.5 billion (−2.5%), profit attributable to owners of parent ¥27.5 billion (−11.6%).

• Segment sales expected to grow in Machine Tools (+10.1%) and Devices and Components (+4.0%), with Watches up 2.0%.

• Watches expected to remain strong, Machine Tools to see significant profit growth.

• Assumes FX rates of ¥150/USD and ¥175/EUR.