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NTN (6472) investor relations material

NTN Q4 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2026 earnings summary15 May, 2026

Executive summary

  • Sales and operating income increased year-over-year, driven by higher aftermarket and industrial machinery demand, price pass-on measures, cost reductions, and a weaker yen, despite sluggish automotive demand and lower sales volumes.

  • Net profit turned positive and rose significantly year-over-year, aided by higher ordinary income, tax effects in Japan, and improved foreign exchange gains.

  • Structural reforms and cost reductions contributed to improved profitability, with progress ahead of plan under the "DRIVE NTN100" initiative.

  • A memorandum of understanding was executed for business integration with NSK Ltd. via a joint holding company, targeting completion by October 2027; effects are not yet reflected in forecasts.

  • Comprehensive income reached ¥50,424 million, a significant turnaround from a loss of ¥24,593 million the previous year.

Financial highlights

  • FY2025 net sales: ¥826.3 billion (+0.1% YoY); operating income: ¥31.0 billion (+8.1 billion YoY); operating margin: 3.8% (+1.0pt YoY).

  • Net profit attributable to owners: ¥12.9 billion (up from a ¥23.8 billion loss YoY); ROE: 4.9% (up 14.5pt YoY).

  • Free cash flow: ¥30.9 billion (+¥11.2 billion YoY); cash flows from operating activities were ¥57,179 million, up 25.3% YoY.

  • FY2026 forecast: net sales ¥810.0 billion (−2.0% YoY), operating income ¥33.0 billion (+2.0 billion YoY), net profit ¥15.0 billion (+2.1 billion YoY), ROE 5.2%.

  • R&D expenses totaled ¥19,950 million, representing 2.4% of net sales.

Outlook and guidance

  • FY2026 sales expected to decrease due to lower automotive demand, especially in the Americas and Europe.

  • Operating income forecast to rise on price improvements and cost reductions; net income to increase due to reduced structural reform costs and asset sales.

  • Dividend forecast for FY2026 is ¥13 per share, up ¥2 from the previous year.

  • Assumptions include exchange rates of ¥150/USD and ¥175/EUR.

  • Ordinary income for FY2027 is forecast to decrease 10.6% to ¥21 billion.

Strategic objectives and timeline for NSK merger
Factors in Americas segment profit turnaround
Status and financial risk of Renault lawsuit
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