Komori
Earnings presentation5805SWCC CorporationIron & Steel, Nonferrous Metals

Supplementary Explanatory Materials for the Financial Results for the Fiscal Year Ending March 2026

In FY2025, revenue and profit increased on strong performance in power infrastructure and communication cables, as well as the consolidation of the TOTOKU Group, while operating profit and other metrics reached record highs. In FY2026, the Company plans to increase revenue and profit, driven by the expansion of growth businesses, although net income is expected to decline year on year.

Worth reading
71In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
399
¥100 million (year-on-year increase in FY2025 revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFY2025 (fiscal year ended March 2026), full year, and FY2026 earnings forecast12 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,777 hundred million+16.8%
Operating profit¥273 hundred million+30.5%
Ordinary income¥261 hundred million+131.8%
Net income¥188 hundred million+65.3%
Operating profit margin9.8%, up 1.0 percentage points year on year
Results for the three months of the current quarterQuarterly standalone revenue and operating profit for Q1 through Q4 of FY25 shown in a graph
Full-year earnings forecast
Net Sales
¥3,250 hundred million
Operating profit
¥285 hundred million
Ordinary income
¥279 hundred million
Net income
¥185 hundred million
Dividend per share
¥250
ROIC
13.8 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Achieved the FY26 target under the medium-term management plan one year ahead of schedule
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
FY2025 revenueImpact of copper price fluctuations +¥13.6 billion; Energy & Infrastructure Business +¥6.1 billion (including Construction & Seismic Isolation −¥7.2 billion); Communications & Components Business +¥28.5 billion (including TOTOKU +¥21.5 billion and foreign exchange impact +¥0.3 billion); Other +¥0.7 billion
FY2025 operating profitHigher material and logistics costs, etc. −¥1.5 billion; price pass-through and cost reductions +¥1.5 billion; lower sales in Construction & Seismic Isolation −¥0.4 billion; improved profitability in power infrastructure +¥2.9 billion; one-time gains from the sharp rise in copper prices +¥0.9 billion; amortization expenses related to the acquisition of TOTOKU −¥1.6 billion; improved profitability in Communications & Components +¥4.5 billion
FY2026 net salesImpact of copper price fluctuations +¥38.3 billion; growth businesses +¥13.9 billion; cash-cow businesses +¥3.5 billion; businesses undergoing renewal and businesses facing challenges, etc. −¥8.4 billion
FY2026 operating profitHigher material and logistics costs, etc. −¥4.2 billion; price pass-through and cost reductions +¥3.7 billion; absence of one-time gains resulting from the sharp rise in copper prices −¥0.9 billion; restructuring −¥0.8 billion; higher profit from growth businesses +¥3.4 billion (including power infrastructure +¥0.7 billion)
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Copper benchmark price
    FY251,695
    FY26E2,100
  • Exchange rate
    FY25150
    FY26E145
  • CCC
    FY2582
    FY26E70
  • Inventory turnover days
    FY2547
    FY26E40
New initiatives
  • Second-phase capacity expansion investment and share expansion for SICONEX®
  • Capacity expansion investment for e-Ribbon® in Japan and overseas
  • Execution of a long-term contract with a partner company
  • Capacity expansion investment for contact probes and local production for local consumption in the Chinese market
  • Making SFCC a wholly owned subsidiary
  • Consolidation of the general-purpose optical business of 冨士電線
  • Logistics and operational efficiency improvements, and DX investment
  • Relocation and consolidation of heater-wire production sites
  • Closure of the Yamamoto Plant and transition to outsourced manufacturing
Key KPIsA metric the company considers important as a management benchmark.
  • ROE20.7 %
    Year on year against the same period last year+6.4pt
  • ROIC13.6 %
    Year on year against the same period last year+1.7pt
  • Equity ratio47.6 %
    Year on year against the same period last year+7.9pt
  • Debt-to-equity ratio40.7 %
    Year on year against the same period last year▲24.7pt
  • CCC82 days
  • Inventory turnover days47 days
Segment results
Energy and Infrastructure Business
Net Sales
¥1,319 hundred million
Operating profit
¥204 hundred million
Year on year against the same period last yearBoth revenue and operating profit increased
Communications and Components Business
Net Sales
¥1,384 hundred million
Operating profit
¥69 hundred million
Year on year against the same period last yearBoth revenue and operating profit increased
Medium-term management plan targets
Plan nameTransformation for Growth SWCC 2030
Target fiscal yearFY2030
Operating profit¥40 billion or more (excluding inorganic growth)
ROE20% or higher
ROIC15% or higher
Dividend¥380 or more
Consolidated payout ratio40% or more
DOE5% or more
Debt-to-equity ratio40〜60%
Net assets¥150 billion or more
External credit ratingA
Financial targets
ROEFY26 target: 14% or more; FY25 actual: 20.7%
ROICFY26 target: 10% or more; FY25 actual: 13.6%
Debt-to-equity ratioFY26 target: Not disclosed; FY25 actual: 40.7%
Equity ratioTarget: Not disclosed; FY25 actual: 47.6%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
The forecast incorporates a certain level of impact on performance, but the amount is Not disclosed
Capital expenditures
¥71 100 million FY2025 actual
Annual Dividend
Annual dividend per share¥250
Interim¥110
End of period¥140
Payout ratio
40% (FY2026 forecast); medium-term management plan targets a consolidated payout ratio of 40% or more and DOE of 5% or more
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFY2025 (fiscal year ended March 2026), full year, and FY2026 earnings forecast
Net Sales¥2,777 hundred million (YoY +16.8%)
Operating profit¥273 hundred million (YoY +30.5%)
Ordinary income¥261 hundred million (YoY +131.8%)
Net income¥188 hundred million (YoY +65.3%)
Operating profit margin9.8%, up 1.0 percentage points year on year
Results for the three months of the current quarterQuarterly standalone revenue and operating profit for Q1 through Q4 of FY25 shown in a graph
Full-year earnings forecastNet Sales ¥3,250 hundred million / Operating profit ¥285 hundred million / Ordinary income ¥279 hundred million / Net income ¥185 hundred million / Dividend per share ¥250 / ROIC 13.8 %
Self-assessment against the planAchieved the FY26 target under the medium-term management plan one year ahead of schedule
Segment resultsEnergy and Infrastructure Business Net Sales ¥1,319 hundred million / Operating profit ¥204 hundred million / Year on year against the same period last year Both revenue and operating profit increased / Communications and Components Business Net Sales ¥1,384 hundred million / Operating profit ¥69 hundred million / Year on year against the same period last year Both revenue and operating profit increased
Breakdown of Factors Affecting the ChangeFY2025 revenue Impact of copper price fluctuations +¥13.6 billion; Energy & Infrastructure Business +¥6.1 billion (including Construction & Seismic Isolation −¥7.2 billion); Communications & Components Business +¥28.5 billion (including TOTOKU +¥21.5 billion and foreign exchange impact +¥0.3 billion); Other +¥0.7 billion / FY2025 operating profit Higher material and logistics costs, etc. −¥1.5 billion; price pass-through and cost reductions +¥1.5 billion; lower sales in Construction & Seismic Isolation −¥0.4 billion; improved profitability in power infrastructure +¥2.9 billion; one-time gains from the sharp rise in copper prices +¥0.9 billion; amortization expenses related to the acquisition of TOTOKU −¥1.6 billion; improved profitability in Communications & Components +¥4.5 billion / FY2026 net sales Impact of copper price fluctuations +¥38.3 billion; growth businesses +¥13.9 billion; cash-cow businesses +¥3.5 billion; businesses undergoing renewal and businesses facing challenges, etc. −¥8.4 billion / FY2026 operating profit Higher material and logistics costs, etc. −¥4.2 billion; price pass-through and cost reductions +¥3.7 billion; absence of one-time gains resulting from the sharp rise in copper prices −¥0.9 billion; restructuring −¥0.8 billion; higher profit from growth businesses +¥3.4 billion (including power infrastructure +¥0.7 billion)
Key KPIsIndicator name ROE / Value 20.7 % / Year on year against the same period last year +6.4pt, Indicator name ROIC / Value 13.6 % / Year on year against the same period last year +1.7pt, Indicator name Equity ratio / Value 47.6 % / Year on year against the same period last year +7.9pt, Indicator name Debt-to-equity ratio / Value 40.7 % / Year on year against the same period last year ▲24.7pt, Indicator name CCC / Value 82 days / Year on year against the same period last year Not disclosed, Indicator name Inventory turnover days / Value 47 days / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookItem Copper benchmark price / FY25 1,695 Yen/kg / FY26E 2,100 Yen/kg, Item Exchange rate / FY25 150 JPY/USD / FY26E 145 JPY/USD, Item CCC / FY25 82 days / FY26E 70 days, Item Inventory turnover days / FY25 47 days / FY26E 40 days
Risk amount incorporated into the outlookThe forecast incorporates a certain level of impact on performance, but the amount is Not disclosed
Medium-term management plan targetsPlan name Transformation for Growth SWCC 2030 / Target fiscal year FY2030 / Operating profit ¥40 billion or more (excluding inorganic growth) / ROE 20% or higher / ROIC 15% or higher / Dividend ¥380 or more / Consolidated payout ratio 40% or more / DOE 5% or more / Debt-to-equity ratio 40〜60% / Net assets ¥150 billion or more / External credit rating A
Financial targetsROE FY26 target: 14% or more; FY25 actual: 20.7% / ROIC FY26 target: 10% or more; FY25 actual: 13.6% / Debt-to-equity ratio FY26 target: Not disclosed; FY25 actual: 40.7% / Equity ratio Target: Not disclosed; FY25 actual: 47.6%
Annual DividendAnnual dividend per share ¥250 / Interim ¥110 / End of period ¥140
Payout ratio40% (FY2026 forecast); medium-term management plan targets a consolidated payout ratio of 40% or more and DOE of 5% or more
Capital expenditures¥71 100 million (FY2025 actual)
New initiativesSecond-phase capacity expansion investment and share expansion for SICONEX®, Capacity expansion investment for e-Ribbon® in Japan and overseas, Execution of a long-term contract with a partner company, Capacity expansion investment for contact probes and local production for local consumption in the Chinese market, Making SFCC a wholly owned subsidiary, Consolidation of the general-purpose optical business of 冨士電線, Logistics and operational efficiency improvements, and DX investment, Relocation and consolidation of heater-wire production sites, Closure of the Yamamoto Plant and transition to outsourced manufacturing
Items this document does not state (10)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In FY2025, strong demand for power infrastructure, the expansion of e-Ribbon® for U.S. data centers, higher sales of semiconductor inspection equipment-related products, and the consolidation of the TOTOKU Group contributed to increases in revenue and profit. For FY2026, the Company factors in higher copper prices and sales growth in growth businesses, along with higher material and logistics costs, the absence of one-time gains resulting from the sharp rise in copper prices, restructuring costs, and the impact of the situation in the Middle East.

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Supplementary Explanatory Materials for the Financial Results for the Fiscal Year Ending March 2026 | SWCC Corporation (5805) timely disclosure | Komori