Hosokawa Micron (6277) Q4 2025 earnings summary

Executive summary

• Net sales and profits declined year-over-year, with FY2025 net sales at ¥77,994 million (down 8.7%), operating profit at ¥7,051 million (down 14.8%), and net profit at ¥4,527 million (down 18.9%).

• Domestic sales remained strong, but European performance, especially in Germany, was sluggish, and both powder-related and blown film-related businesses saw declines due to postponed investments and global uncertainty.

• SG&A expenses were reduced by ¥1.3 billion to offset revenue shortfalls.

• Extraordinary losses, including ¥885 million from German restructuring and US asset impairment, further reduced profits.

Financial highlights

• Consolidated bookings: ¥74.4 billion, down 4.2% YoY; net sales: ¥77.99 billion, down 8.7% YoY.

• Operating profit: ¥7.05 billion, down 14.8% YoY; net profit: ¥4.53 billion, down 18.9% YoY.

• Gross profit margin held steady at 35.1%; SG&A ratio increased to 26.0%.

• Comprehensive income rose to ¥8,475 million (up 64% YoY), mainly due to foreign currency translation adjustments.

• Operating cash flow improved to ¥9,499 million, while investing cash flow was -¥3,680 million.

Outlook and guidance

• FY2026 forecast: net sales ¥78.5 billion (+0.6% YoY), operating profit ¥7.0 billion (-0.7% YoY), net profit ¥5.2 billion (+14.9% YoY), and EPS ¥355.29.

• Focus on expanding aftersales services, materials business, digital solutions, and strengthening niche market profitability.

• Risks include global economic unpredictability, U.S. trade policy, inflation, and potential delays in customer investment decisions.