Sankyo (6417) Q4 2026 earnings summary

Executive summary

• Net sales decreased 6.6% year-over-year to ¥179.2 billion, with net income down 13.4% to ¥46.8 billion.

• Pachinko machines achieved over 30% market share for the fourth consecutive year, while pachislot maintained a double-digit share but saw sharp declines.

• The company largely met revised mid-term management plan targets despite challenging market conditions.

• Total assets at year-end were ¥287.4 billion, with net assets at ¥250.1 billion and a shareholders' equity ratio of 86.5%.

Financial highlights

• Operating income fell 15.1% year-over-year to ¥62.5 billion; gross profit margin was 58.4%.

• Pachinko segment net sales rose 11.2% to ¥119.8 billion, while pachislot segment sales dropped 31.6% to ¥43.4 billion.

• Ball bearing supply business net sales declined 22.9% to ¥15.5 billion.

• Operating margin was 34.9%, and ROE was 17.6% for FY2026.

• Cash and cash equivalents at year-end were ¥192.4 billion, down ¥47.6 billion from the previous year.

Outlook and guidance

• FY3/2027 net sales forecasted at ¥174.0 billion (down 2.9%), with net income projected at ¥40.0 billion (down 14.4%).

• Pachinko unit sales expected to decrease 10.4% to 225,500 units; pachislot unit sales to rise 40.2% to 127,000 units.

• Operating income forecasted to decline 10.4% to ¥56.0 billion, with gross margin at 58.0%.

• Full-year dividend forecast for FY2027 is ¥80 per share, maintaining a payout ratio of 39.5%.

• Market conditions for both segments remain challenging, with continued divergence from initial assumptions.