NOK (7240) Q4 2026 earnings summary

Executive summary

• FY2025 consolidated operating income was nearly in line with the November 2025 forecast, but net sales and operating income targets from the previous medium-term plan were not achieved, while ROA targets were met.

• Net sales for FY2025 were ¥738.4 billion, down 3.7% year-over-year, with operating income at ¥33.0 billion, down 11.5% year-over-year.

• Ordinary income rose 3.7% to ¥49.84 billion, and profit attributable to owners of parent surged 52.8% to ¥46.34 billion, driven by gains on sale of investment securities despite a loss on sale of subsidiaries.

• Strategic goals for transformation were advanced, and shareholder returns exceeded the three-year target.

• Integration with Eagle Industry is progressing, with the new holding company scheduled for listing in October 2026.

Financial highlights

• FY2025 net sales were ¥738.4B, down 3.7% year-over-year; operating income was ¥33.0B, down 11.5%; net income rose 52.7% to ¥46.3B; EPS increased by ¥100.03 to ¥284.84.

• Operating margin declined to 4.5% from 4.9% year-over-year.

• FY2026 forecasts: net sales ¥756.6B (+2.5%), operating income ¥35.0B (+6.1%), net income ¥46.4B (+0.1%), EPS ¥285.22.

• Gross profit was ¥131.35B, down from ¥136.05B the previous year.

• Cash and cash equivalents at year-end were ¥156.71B, up ¥20.56B from the prior year.

Outlook and guidance

• FY2026 expects higher operating income and net sales, driven by profitability improvements and cost optimization.

• Dividend forecast for FY2026 is 140 yen per share; post-integration dividend policy to be announced after holding company listing.

• Business plans for the integrated company will be announced after the merger.

• Seal business expected to grow 7.1% in sales and 10.6% in operating income; electronic products business sales to rise 3.4% but operating income to fall 11.8%.

• Management integration with Eagle Industry via joint holding company planned for October 1, 2026.