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Financial results presentation6798SMK CorporationElectrical Equipment and Precision Instruments

Full-Year Financial Results Presentation for the Fiscal Year Ending March 2026

In the fiscal year ended March 2026, revenue increased 0.3% year on year to ¥48.2 billion, while operating income turned from a loss in the previous fiscal year to a profit of ¥430 million. Profit improved due to fixed-cost reductions under the structural reform program and other factors, although some businesses continued to report higher revenue but lower profit or remain in the red.

Worth reading
43Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
650
¥ million (year-on-year change in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 2026, full year6 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥48,204 million+0.3%
Operating profit¥430 million
Ordinary income¥1,243 million+126.3%
Net income¥56 million
Operating profit margin0.9% (previous fiscal year: -0.5%; +1.4 percentage points year on year)
Results for the three months of the current quarter
FY2025 4Q
Net Sales
¥13,017 million
Operating profit
¥-42 million
Full-year earnings forecast
Net Sales
¥49,000 million
Operating profit
¥800 million
Ordinary income
¥1,200 million
Net income for the current fiscal year
¥800 million
Earnings per share
¥126.41
Dividend
¥100
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in revenue¥196 million
  • Foreign exchange impact (stronger yen and renminbi)¥-370 million
  • Lower variable cost ratio¥150 million
  • Fixed-cost reductions under the structural reform program (lower domestic labor costs)¥490 million
  • Lower fixed costs (labor costs, expenses and depreciation)¥674 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • FY2026 average exchange rate (USD/JPY)¥155
  • Impact of the situation in the Middle EastNot factored into the earnings forecast
New initiatives
  • Fixed-cost reductions under the structural reform program
  • Transfer of the communication module business to the SCI Division
  • Commercialization of voice analysis and electromyography (EMG) sensors
Key KPIsA metric the company considers important as a management benchmark.
  • Average exchange rate (USD/JPY)¥150.66
    Year on year against the same period last year-2.0%
  • Average exchange rate (USD/RMB)7.09 Renminbi
    Year on year against the same period last year-0.1%
Segment results
CS Division
Net Sales
¥22,520 million
Year-on-Year Change in Revenue (%)1.6
Operating profit
¥1,187 million
Operating profit year-on-year_pct-22.6
SCI Division
Net Sales
¥25,621 million
Year-on-Year Change in Revenue (%)-0.1
Operating profit
¥-378 million
Year-on-year operating profit growthNarrowing operating loss
Innovation center
Net Sales
¥62 million
Year-on-Year Change in Revenue (%)-75.2
Operating profit
¥-379 million
Year-on-year operating profit growthNarrowing operating loss
Annual Dividend
¥100 per share
BreakdownInterim ¥50, year-end ¥50
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥48,204 million (YoY +0.3%)
Operating profit¥430 million
Ordinary income¥1,243 million (YoY +126.3%)
Net income¥56 million
Operating profit margin0.9% (previous fiscal year: -0.5%; +1.4 percentage points year on year)
Results for the three months of the current quarterNet Sales ¥13,017 million / Operating profit ¥-42 million / Subject FY2025 4Q
Full-year earnings forecastNet Sales ¥49,000 million / Operating profit ¥800 million / Ordinary income ¥1,200 million / Net income for the current fiscal year ¥800 million / Earnings per share ¥126.41 / Dividend ¥100
Segment resultsCS Division Net Sales ¥22,520 million / Year-on-Year Change in Revenue (%) 1.6 / Operating profit ¥1,187 million / Operating profit year-on-year_pct -22.6 / SCI Division Net Sales ¥25,621 million / Year-on-Year Change in Revenue (%) -0.1 / Operating profit ¥-378 million / Year-on-year operating profit growth Narrowing operating loss / Innovation center Net Sales ¥62 million / Year-on-Year Change in Revenue (%) -75.2 / Operating profit ¥-379 million / Year-on-year operating profit growth Narrowing operating loss
Breakdown of Factors Affecting the ChangeFactors Increase in revenue / Amount ¥196 million, Factors Foreign exchange impact (stronger yen and renminbi) / Amount ¥-370 million, Factors Lower variable cost ratio / Amount ¥150 million, Factors Fixed-cost reductions under the structural reform program (lower domestic labor costs) / Amount ¥490 million, Factors Lower fixed costs (labor costs, expenses and depreciation) / Amount ¥674 million
Key KPIsIndicator name Average exchange rate (USD/JPY) / Value ¥150.66 / Year on year against the same period last year ¥-1.99, Indicator name Average exchange rate (USD/RMB) / Value 7.09 Renminbi / Year on year against the same period last year -0.13 Renminbi
Assumptions Underlying the Business OutlookItem FY2026 average exchange rate (USD/JPY) / Value ¥155, Item Impact of the situation in the Middle East / Value Not factored into the earnings forecast
Annual Dividend¥100 per share
New initiativesFixed-cost reductions under the structural reform program, Transfer of the communication module business to the SCI Division, Commercialization of voice analysis and electromyography (EMG) sensors
Items this document does not state (16)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout ratioAcquisition of treasury sharesCapital expendituresOrders 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.

The factors cited for the improvement in operating income were fixed-cost reductions under the structural reform program, higher revenue and a lower variable-cost ratio. Foreign exchange movements were a negative factor due to the appreciation of the yen and the renminbi.

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Full-Year Financial Results Presentation for the Fiscal Year Ending March 2026 | SMK Corporation (6798) timely disclosure | Komori