Sanwa (5929) Q4 2026 earnings summary

Executive summary

• FY2025 net sales were ¥660.7 billion (down 0.3% YoY), operating profit ¥79.1 billion (down 1.8% YoY), and net profit attributable to owners was ¥59.8 billion (up 3.9% YoY), with strong performance in Japan but weak markets in North America, Europe, and Asia.

• The group advanced its Mid-Term Management Plan 2027, focusing on strengthening core businesses, expanding smart and climate change response products, and enhancing sustainability and human capital management.

• FY2026 aims for record-high operating profit of ¥81.0 billion, leveraging price pass-through to offset continued market weakness.

• Market conditions remained challenging due to global trade friction, economic uncertainty, and rising energy prices.

Financial highlights

• FY2025 net sales: ¥660.7 billion (−0.3% YoY); operating profit: ¥79.1 billion (−1.8% YoY); net profit attributable to owners: ¥59.8 billion (+3.9% YoY).

• FY2026 forecast: net sales ¥677.0 billion (+2.5% YoY), operating profit ¥81.0 billion (+2.4% YoY), net profit ¥60.0 billion (+0.4% YoY), EPS ¥288.08.

• Operating profit margin stable at 12.0%.

• Dividend per share for FY2025: ¥130 (+¥24 YoY); FY2026 forecast: ¥146 (+¥16 YoY, includes ¥14 commemorative dividend).

• Announced new ¥10.0 billion share buyback.

Outlook and guidance

• FY2026 expects sales and profit growth across all regions, driven by price pass-through and recovery in Asia.

• Market conditions remain weak, especially in North America and Europe, but gradual recovery anticipated in the second half of FY2026.

• No impact from Middle East situation factored into FY2026 guidance.

• Actual results may differ from forecasts due to external risks.