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Financial results presentation6806HIROSE ELECTRIC CO.,LTD.Electrical Equipment and Precision Instruments

Financial Results Presentation Materials for the Fiscal Year Ending March 2026

In FY2025, profit margins declined due to higher costs, including materials and labor, but higher sales in general industrial machinery and automotive and mobility products drove revenue and operating profit above the previous year. For FY2026, the Company forecasts revenue of ¥230.0 billion and operating profit of ¥46.0 billion.

Worth reading
61In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
218.4
¥100 million (year-on-year increase in net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ended March 2026 (fiscal 2025)13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,112.6 100 million+11.5%
Operating profit¥429.9 100 million+0.8%
Net income¥331.4 100 million+0.3%
Selling, general and administrative expenses¥457.1 100 million
Gross Profit MarginCost of sales ratio: 57.9%, deteriorating by 3.0 percentage points year on year (gross profit margin not disclosed)
Operating profit margin20.4%, down 2.1 percentage points year on year
Results for the three months of the current quarterQ4 FY2025: revenue of ¥54.72 billion, operating profit of ¥10.49 billion, and an operating margin of 19.2%
Full-year earnings forecastFY2026 (fiscal year ending March 2027) forecast: revenue of ¥230.0 billion, operating profit of ¥46.00 billion, profit before tax of ¥48.00 billion, net income of ¥34.00 billion, earnings per share of ¥1,039.08, dividend per share of ¥520, ROE of 9.0%, and a consolidated payout ratio of 50.0%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
General industrial machinery finished above the full-year forecast. Smartphone and mobile devices declined 5% versus the forecast decline of 7%, while consumer and mobile equipment was flat versus the forecast decline of 2%.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Higher volumes+¥17.8 billion
  • Foreign Exchange Effects-¥1.0 billion
  • Higher depreciation and amortization-¥1.4 billion
  • Higher personnel expenses-¥3.8 billion
  • Higher materials and purchased-goods costs-¥6.5 billion
  • Price adjustments-¥4.0 billion
  • Price optimization+¥500 million
  • Other-¥1.4 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate
  • ¥150.00 per US dollar
  • ¥183.00 per euro
  • ¥10.50 per 100 won
New initiatives
  • Expand ヒロセSER's probe application products and probe business as a new growth pillar
  • Strengthen proposals for microprobes and application products for semiconductor inspection
  • Strengthen ヒロセSER's supply capacity by leveraging the connector business's mass-production and quality-control expertise
  • Executive personnel changes effective 25 June 2026
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥2,249.8 100 million
    Year on year against the same period last year+16.8%
  • Hirose Technology Exhibition attendance10,009 people
    Year on year against the same period last year21.5% increase from the previous event
Segment results
  • General industrial machinery
    Net Sales¥62.0 billion
    Year on year against the same period last year+32%
  • Smartphones and mobile devices
    Net Sales¥44.3 billion
    Year on year against the same period last year-5%
  • Consumer and mobile equipment
    Net Sales¥34.7 billion
    Year on year against the same period last year±0%
  • Automotive and mobility-related products
    Net Sales¥54.3 billion
    Year on year against the same period last year+10%
  • Telecommunications infrastructure equipment
    Net Sales¥6.7 billion
    Year on year against the same period last year+24%
  • OA equipment (office equipment)
    Net Sales¥1.9 billion
    Year on year against the same period last year+6%
Financial targets
ROE: 8.9% actual for FY2025 and 9.0% forecast for FY2026. Equity ratio: 87.7% actual for FY2025. Quantitative target: Not disclosed
Orders received and order backlog
Orders received: ¥224.98 billion, up 16.8% year on year. Order backlog: Not disclosed
Number of employees
Number of Employees5,110 people
Change during the periodUp 232 people from 4,878 at 31 March 2025. The domestic workforce increased by 201 people, mainly due to the expanded scope of consolidation of ヒロセSER, while the overseas workforce increased by 31 people.
Capital expenditures
¥199 100 million FY2025 actual, excluding investments in land, buildings, and software
Annual Dividend
FY2025: ¥505 (interim ¥245, year-end ¥260); FY2026 forecast: ¥520 (interim ¥260, year-end ¥260)
Payout ratio
FY2025: 50.9%; FY2026 forecast: 50.0%. The Company uses a DOE target of 5% as a shareholder return metric. FY2025 total payout ratio: 112%
Acquisition of treasury shares
Approximately ¥20.0 billion was spent in FY2025. The Company announced share repurchases of up to ¥60.0 billion from FY2025 through FY2028, with the remaining approximately ¥40.0 billion scheduled to be carried out by FY2028.
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ended March 2026 (fiscal 2025)
Net Sales¥2,112.6 100 million (YoY +11.5%)
Operating profit¥429.9 100 million (YoY +0.8%)
Net income¥331.4 100 million (YoY +0.3%)
Gross Profit MarginCost of sales ratio: 57.9%, deteriorating by 3.0 percentage points year on year (gross profit margin not disclosed)
Operating profit margin20.4%, down 2.1 percentage points year on year
Selling, general and administrative expenses¥457.1 100 million
Results for the three months of the current quarterQ4 FY2025: revenue of ¥54.72 billion, operating profit of ¥10.49 billion, and an operating margin of 19.2%
Full-year earnings forecastFY2026 (fiscal year ending March 2027) forecast: revenue of ¥230.0 billion, operating profit of ¥46.00 billion, profit before tax of ¥48.00 billion, net income of ¥34.00 billion, earnings per share of ¥1,039.08, dividend per share of ¥520, ROE of 9.0%, and a consolidated payout ratio of 50.0%
Self-assessment against the planGeneral industrial machinery finished above the full-year forecast. Smartphone and mobile devices declined 5% versus the forecast decline of 7%, while consumer and mobile equipment was flat versus the forecast decline of 2%.
Segment resultsSegment General industrial machinery / Net Sales ¥62.0 billion / Year on year against the same period last year +32%, Segment Smartphones and mobile devices / Net Sales ¥44.3 billion / Year on year against the same period last year -5%, Segment Consumer and mobile equipment / Net Sales ¥34.7 billion / Year on year against the same period last year ±0%, Segment Automotive and mobility-related products / Net Sales ¥54.3 billion / Year on year against the same period last year +10%, Segment Telecommunications infrastructure equipment / Net Sales ¥6.7 billion / Year on year against the same period last year +24%, Segment OA equipment (office equipment) / Net Sales ¥1.9 billion / Year on year against the same period last year +6%
Breakdown of Factors Affecting the ChangeFactors Higher volumes / Amount +¥17.8 billion, Factors Foreign Exchange Effects / Amount -¥1.0 billion, Factors Higher depreciation and amortization / Amount -¥1.4 billion, Factors Higher personnel expenses / Amount -¥3.8 billion, Factors Higher materials and purchased-goods costs / Amount -¥6.5 billion, Factors Price adjustments / Amount -¥4.0 billion, Factors Price optimization / Amount +¥500 million, Factors Other / Amount -¥1.4 billion
Key KPIsIndicator name Orders received / Value ¥2,249.8 100 million / Year on year against the same period last year +16.8%, Indicator name Hirose Technology Exhibition attendance / Value 10,009 people / Year on year against the same period last year 21.5% increase from the previous event
Number of employeesNumber of Employees 5,110 people / Change during the period Up 232 people from 4,878 at 31 March 2025. The domestic workforce increased by 201 people, mainly due to the expanded scope of consolidation of ヒロセSER, while the overseas workforce increased by 31 people.
Assumptions Underlying the Business OutlookExchange rate ¥150.00 per US dollar, ¥183.00 per euro, ¥10.50 per 100 won
Financial targetsROE: 8.9% actual for FY2025 and 9.0% forecast for FY2026. Equity ratio: 87.7% actual for FY2025. Quantitative target: Not disclosed
Annual DividendFY2025: ¥505 (interim ¥245, year-end ¥260); FY2026 forecast: ¥520 (interim ¥260, year-end ¥260)
Payout ratioFY2025: 50.9%; FY2026 forecast: 50.0%. The Company uses a DOE target of 5% as a shareholder return metric. FY2025 total payout ratio: 112%
Acquisition of treasury sharesApproximately ¥20.0 billion was spent in FY2025. The Company announced share repurchases of up to ¥60.0 billion from FY2025 through FY2028, with the remaining approximately ¥40.0 billion scheduled to be carried out by FY2028.
Capital expenditures¥199 100 million (FY2025 actual, excluding investments in land, buildings, and software)
Orders received and order backlogOrders received: ¥224.98 billion, up 16.8% year on year. Order backlog: Not disclosed
New initiativesExpand ヒロセSER's probe application products and probe business as a new growth pillar, Strengthen proposals for microprobes and application products for semiconductor inspection, Strengthen ヒロセSER's supply capacity by leveraging the connector business's mass-production and quality-control expertise, Executive personnel changes effective 25 June 2026
Items this document does not state (8)
Ordinary incomeProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsMarket 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 general industrial machinery market continued to grow and exceeded the full-year forecast, while sales to the automotive and mobility-related markets remained firm. Although sales to the smartphone and mobile-device markets are seasonal, the decline was smaller than forecast. Higher materials and purchased-goods costs, depreciation and amortization, and labor costs weighed on profit. Meanwhile, higher volumes and price optimization supported profit.

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Financial Results Presentation Materials for the Fiscal Year Ending March 2026 | HIROSE ELECTRIC CO.,LTD. (6806) timely disclosure | Komori