Stanley Electric (6923) Investor presentation summary

FY2026/3 financial results

• Net sales reached 518.4 billion yen, up 1.7% year-on-year and 3.7% above forecasts, driven by strong performance in the Americas and Asia-Pacific and favorable foreign exchange effects.

• Operating income declined by 12.9% to 42.6 billion yen due to semiconductor shortages and one-off costs.

• ROE improved to 7.0%, while the equity ratio decreased to 56.1%.

• Free cash flow surged to 294 hundred million yen, reflecting improved cash generation.

• Dividend per share increased to 104 yen, with ongoing flexible treasury stock purchases.

FY2027/3 forecasts

• Net sales are projected to rise 20% to 622.0 billion yen, mainly from newly consolidated companies.

• Operating income is forecast to grow 28.9% to 55.0 billion yen, supported by contributions from Iwasaki Electric and Stanley Mobility Electric, as well as cost improvements.

• ROE is expected to reach 8%, with an equity ratio target of around 50%.

• Dividend per share is forecast at 111 yen, maintaining a policy of DOE 3.5% or a 40% payout ratio.

Business strategy and structural reforms

• Expanding orders from non-Japanese OEMs, with sales ratio forecast to rise from 1.8% to 2.4% by FY2027/3.

• Full-scale entry into ADAS and next-generation vehicle systems, aiming for zero traffic fatalities and enhanced safety.

• Business expansion into social infrastructure through the acquisition of Iwasaki Electric, leveraging synergies in smart lighting and energy-saving solutions.

• Structural reforms focus on cost reduction, supply chain optimization, and SG&A efficiency, including AI-driven management and asset-light production models.