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Financial Results Presentation6820ICOM INCORPORATEDElectrical Equipment and Precision Instruments

Financial Results Presentation Materials for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, net sales declined 1.4% year on year and operating profit fell 21.7%, while the operating margin decreased from 9.9% to 7.9%. For the fiscal year ending March 2027, the company expects higher sales, higher profit and an increase in dividends. Under Medium-Term Management Plan 2030, it is targeting net sales of ¥43 billion and operating profit of ¥4.3 billion for the fiscal year ending March 2030.

Worth reading
66In 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
-808
¥ millions (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationFiscal year ending March 2026, full year12 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales36,959 Millions of yen-1.4%
Operating profit2,913 Millions of yen-21.7%
Ordinary income3,812 Millions of yen-2.3%
Net income¥2,665 million -9.7%net income attributable to owners of the parent
Selling, general and administrative expenses¥13,283 millions, up 2.6% year on year
Operating profit margin7.9%, down 2.0 percentage points from 9.9% in the previous fiscal year
Full-year earnings forecast
Net Sales
37,500 Millions of yen
Operating profit
3,800 Millions of yen
Profit attributable to owners of the parent
3,100 Millions of yen
Operating profit margin
10.1 %
Net profit margin
8.3 %
Capital expenditures
12.84 Hundreds of millions of yen
Depreciation and amortization
11.15 Hundreds of millions of yen
Research and development expenses
44.47 Hundreds of millions of yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The targets of ¥40 billion in net sales and a 10% operating margin under Medium-Term Management Plan 2026 were not achieved. Growth in the stock business exceeded the plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Land Mobile Business Radio Communications Equipment
    Change in amount-747
  • Amateur Radio Communications Equipment
    Change in amount-1,216
  • Maritime Radio Communications Equipment
    Change in amount358
  • Accessories and other products
    Change in amount1,095
  • Japan
    Change in amount1,029
  • Americas
    Change in amount-836
  • EMEA
    Change in amount333
  • Asia and Oceania
    Change in amount-1,035
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Assumed Exchange Rates
USD¥153.00
EUROJPY 180.00
Expenses included in the assumptionsActive capital investment, increased advertising and promotional activities, and higher personnel expenses
Demand DriversAssumes an impact on demand from rising prices and higher logistics costs, among other factors
New initiatives
  • Entry into the public infrastructure market (MC-PTT/MCX)
  • Entry into the defense communications market and launch of MA-DNX-compatible terminals
  • Accelerate business partnerships
  • Pursue M&A, targeting 1 transaction per year
  • Consolidate 4 buildings around the head office through the Osaka Campus Project
  • Automate 和歌山アイコム and expand its warehouse
  • Invest in AI, video technologies, 5G-compatible IP radio systems and other areas
Key KPIsA metric the company considers important as a management benchmark.
  • Research and development expenses4,256 Millions of yen
    Year on year against the same period last year+6.3%
  • Robot production ratio18.8 %
  • Total production volume735,025 Units
  • Number of robots produced138,495 Units
    Year on year against the same period last year-6.4%
  • New Products8 Models
  • Stock-based business revenue mix10.1 %
Segment results
  • Japan
    Net Sales21,177 Millions of yen
  • North America
    Net Sales11,338 Millions of yen
  • Europe (EMEA)
    Net Sales2,788 Millions of yen
  • Asia, Oceania and other regions
    Net Sales1,655 Millions of yen
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2030
Net Sales¥43 billion
Operating profit¥4.3 billion
Operating profit margin10.0%
Stock business sales mix10%
ROE5.0% or more
PBRAt least 1.0x
Comparison with actual resultsFiscal year ended March 2026 results: net sales of ¥36.959 billion, operating profit of ¥2.913 billion, operating margin of 7.9%, ROE of 3.8%, and PBR of 0.61x
Financial targets
ROE
Target5.0% or more
Actual results for the fiscal year ending March 20263.8%
PBR
TargetAt least 1.0x
Actual results for the fiscal year ending March 20260.61x
Equity ratio
Fiscal year-end March 2026 results89.2%
Market Size / Share
MC-DNXEstimated addressable market of up to 100,000 units. The company aims to generate sales of tens of thousands of units and several billion yen over multiple years
MC-PTT/MCXEstimated addressable market of several million units. The company aims to generate sales of tens of thousands of units and several billion yen over multiple years
Capital expenditures
¥370 hundred million cumulative investment plan for the period covered by Medium-Term Management Plan 2030, including approximately ¥12 billion in capital investment and approximately ¥5 billion to replace existing equipment
Annual Dividend
Planned for the fiscal year ending March 2027
Annual¥87
Interim¥25
End of period¥62
Actual results for the fiscal year ending March 2026
Annual¥75
Interim¥25
End of period¥50
Payout ratio
40.3% planned for the fiscal year ending March 2027; the shareholder return policy sets the higher of a consolidated payout ratio of at least 40% or annual dividends per share of ¥60 as the floor
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales36,959 Millions of yen (YoY -1.4%)
Operating profit2,913 Millions of yen (YoY -21.7%)
Ordinary income3,812 Millions of yen (YoY -2.3%)
Net income¥2,665 million (net income attributable to owners of the parent) (YoY -9.7%)
Operating profit margin7.9%, down 2.0 percentage points from 9.9% in the previous fiscal year
Selling, general and administrative expenses¥13,283 millions, up 2.6% year on year
Full-year earnings forecastNet Sales 37,500 Millions of yen / Operating profit 3,800 Millions of yen / Profit attributable to owners of the parent 3,100 Millions of yen / Operating profit margin 10.1 % / Net profit margin 8.3 % / Capital expenditures 12.84 Hundreds of millions of yen / Depreciation and amortization 11.15 Hundreds of millions of yen / Research and development expenses 44.47 Hundreds of millions of yen
Self-assessment against the planThe targets of ¥40 billion in net sales and a 10% operating margin under Medium-Term Management Plan 2026 were not achieved. Growth in the stock business exceeded the plan.
Segment resultsSegment Japan / Net Sales 21,177 Millions of yen / yoy_pct 0.2, Segment North America / Net Sales 11,338 Millions of yen / yoy_pct -6.6, Segment Europe (EMEA) / Net Sales 2,788 Millions of yen / yoy_pct 6, Segment Asia, Oceania and other regions / Net Sales 1,655 Millions of yen / yoy_pct 5.1
Breakdown of Factors Affecting the ChangeFactors Land Mobile Business Radio Communications Equipment / Change in amount -747 Millions of yen, Factors Amateur Radio Communications Equipment / Change in amount -1,216 Millions of yen, Factors Maritime Radio Communications Equipment / Change in amount 358 Millions of yen, Factors Accessories and other products / Change in amount 1,095 Millions of yen, Factors Japan / Change in amount 1,029 Millions of yen, Factors Americas / Change in amount -836 Millions of yen, Factors EMEA / Change in amount 333 Millions of yen, Factors Asia and Oceania / Change in amount -1,035 Millions of yen
Key KPIsIndicator name Research and development expenses / Value 4,256 Millions of yen / Year on year against the same period last year 6.3 Millions of yen, Indicator name Robot production ratio / Value 18.8 % / Year on year against the same period last year Not disclosed, Indicator name Total production volume / Value 735,025 Units / Year on year against the same period last year Not disclosed, Indicator name Number of robots produced / Value 138,495 Units / Year on year against the same period last year -6.4 Units, Indicator name New Products / Value 8 Models / Year on year against the same period last year Not disclosed, Indicator name Stock-based business revenue mix / Value 10.1 % / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookAssumed Exchange Rates USD ¥153.00 / EURO JPY 180.00 / Expenses included in the assumptions Active capital investment, increased advertising and promotional activities, and higher personnel expenses / Demand Drivers Assumes an impact on demand from rising prices and higher logistics costs, among other factors
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2030 / Net Sales ¥43 billion / Operating profit ¥4.3 billion / Operating profit margin 10.0% / Stock business sales mix 10% / ROE 5.0% or more / PBR At least 1.0x / Comparison with actual results Fiscal year ended March 2026 results: net sales of ¥36.959 billion, operating profit of ¥2.913 billion, operating margin of 7.9%, ROE of 3.8%, and PBR of 0.61x
Financial targetsROE Target 5.0% or more / Actual results for the fiscal year ending March 2026 3.8% / PBR Target At least 1.0x / Actual results for the fiscal year ending March 2026 0.61x / Equity ratio Fiscal year-end March 2026 results 89.2%
Annual DividendPlanned for the fiscal year ending March 2027 Annual ¥87 / Interim ¥25 / End of period ¥62 / Actual results for the fiscal year ending March 2026 Annual ¥75 / Interim ¥25 / End of period ¥50
Payout ratio40.3% planned for the fiscal year ending March 2027; the shareholder return policy sets the higher of a consolidated payout ratio of at least 40% or annual dividends per share of ¥60 as the floor
Capital expenditures¥370 hundred million (cumulative investment plan for the period covered by Medium-Term Management Plan 2030, including approximately ¥12 billion in capital investment and approximately ¥5 billion to replace existing equipment)
Market Size / ShareMC-DNX Estimated addressable market of up to 100,000 units. The company aims to generate sales of tens of thousands of units and several billion yen over multiple years / MC-PTT/MCX Estimated addressable market of several million units. The company aims to generate sales of tens of thousands of units and several billion yen over multiple years
New initiativesEntry into the public infrastructure market (MC-PTT/MCX), Entry into the defense communications market and launch of MA-DNX-compatible terminals, Accelerate business partnerships, Pursue M&A, targeting 1 transaction per year, Consolidate 4 buildings around the head office through the Osaka Campus Project, Automate 和歌山アイコム and expand its warehouse, Invest in AI, video technologies, 5G-compatible IP radio systems and other areas
Items this document does not state (10)
Gross Profit MarginResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesOrders received and order backlogKey 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.

Sales of land mobile radio equipment for business use declined as customers overseas continued to defer purchases amid uncertainty surrounding U.S. tariff policy. Sales of amateur radio equipment were affected by consumers' tendency to economize amid rising prices, purchase deferrals ahead of new product launches, and tariff policy and sluggish economic activity and consumption in the Americas and Asia. The operating profit outlook assumes active capital investment, increased advertising and promotional activities, and higher personnel expenses, among other factors.

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Financial Results Presentation Materials for the Fiscal Year Ending March 2026 | ICOM INCORPORATED (6820) timely disclosure | Komori