Mitsubishi Pencil (7976) Q4 2025 earnings summary

Executive summary

• Net sales for FY2025 rose 1.1% year-over-year to ¥89.8 billion, driven by strong domestic and Asian sales, but operating profit fell 44.7% to ¥6.2 billion and profit attributable to owners dropped 44.7% to ¥6.2 billion.

• Comprehensive income decreased to ¥14,770 million from ¥17,817 million year-over-year.

• Profit was impacted by the absence of prior year extraordinary gains from asset sales.

Financial highlights

• Net sales: ¥89.8 billion (+1.1% YoY); gross profit: ¥34.8 billion (+0.5% YoY); operating profit: ¥6.2 billion (–44.7% YoY); profit attributable to owners: ¥6.2 billion; EPS: ¥114.27.

• Gross profit declined to ¥44,522 million from ¥46,840 million year-over-year, with gross margin falling as cost of sales increased.

• Operating profit margin declined to 10.8% from 13.7% the previous year.

• Equity-to-asset ratio improved to 75.7% from 72.6% year-over-year.

• Cash flows from operating activities decreased sharply to ¥2,413 million from ¥6,467 million year-over-year; cash and equivalents at year-end: ¥32.8 billion, down from ¥39.6 billion.

Outlook and guidance

• FY2026 net sales forecast: ¥94.0 billion (+4.7% YoY); operating profit: ¥10.5 billion (+8.3% YoY); profit attributable to owners projected at ¥7.7 billion (+23.5% YoY); EPS: ¥142.35.

• Dividend forecast for FY2026: ¥55 per share, including commemorative dividends, marking 24 consecutive years of increases.