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Presentation materials for financial results6923Stanley Electric Co.,Ltd.Electrical Equipment and Precision Instruments

Full-year results for the fiscal year ending March 2026 (121st fiscal period) / Medium-term management plan

For the fiscal year ending March 2026, revenue and net income increased, while operating income declined due to factors including the semiconductor shortage and one-time expenses, and fell short of the operating income plan. For the fiscal year ending March 2027, the company plans higher revenue and earnings, driven mainly by the consolidation of new subsidiaries including 岩崎電気, and presented a medium-term management plan targeting revenue of ¥700 billion and ROE of 10% in fiscal 2029.

Worth reading
91Important
Scored from 4 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-63
¥100 million (year-on-year change in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending March 2026, full year11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales5,184 Hundreds of millions of yen+1.7%
Operating profit426 Hundreds of millions of yen-12.9%
Ordinary income508 Hundreds of millions of yen-8.3%
Net income328 Hundreds of millions of yen+2.4%
Operating profit margin8.2
Full-year earnings forecast
Fiscal Period CoveredFiscal year ending March 2027
Net Sales
6,220 Hundreds of millions of yen
Operating profit
550 Hundreds of millions of yen
Ordinary income
580 Hundreds of millions of yen
Net income
340 Hundreds of millions of yen
ROE
7.7 %
Equity ratio
50 %
Free cash flow
-670 Hundreds of millions of yen
Earnings per share
¥276.62
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit, fiscal year ended March 2026
Rationalization benefits and production innovation65
Revenue impact-51
Impact on pricing1
Higher personnel expenses-20
Strategic costs-15
Higher other expenses-23
Foreign Exchange Effects1
Tariff impact-48
Tariff recovery41
Non-Recurring Expenses-15
Operating profit plan for the fiscal year ending March 2027
Rationalization benefits and production innovation143
Revenue impact29
Impact on pricing-113
Strategic costs29
Higher other expenses-41
Foreign Exchange Effects-4
One-off impact55
Impact of newly consolidated companies24
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate
USD/JPY150
EUR/JPY180
IDR/JPY0.01
VND/JPY0.01
THB/JPY4.71
CNY/JPY22.02
Newly consolidated岩崎電気, Stanley Mobility Electric
Foreign exchange sensitivity
Impact on revenue of a ¥1 depreciation of the yen32 Hundreds of millions of yen
Impact on operating income of a ¥1 depreciation of the yen3 Hundreds of millions of yen
New initiatives
  • Making 岩崎電気 a subsidiary and newly consolidating it
  • Entry into the ADAS systems field by Stanley Mobility Electric
  • Expanding orders from non-Japanese OEMs
  • Development of automotive LiDAR and ADAS technologies
  • Development of new backlight technologies for the automotive market
  • Execution of the 9th Medium-Term Management Plan
  • Structural, component, supply chain, and SG&A reforms under PROJECT NO BORDER
  • Improving productivity through dark factories and AI and data integration
Key KPIsA metric the company considers important as a management benchmark.
  • ROE7 %
    Year on year against the same period last year+0.7%
  • Equity ratio56.1 %
    Year on year against the same period last year-8.7%
  • Non-Japanese sales ratio1.8 %
    Year on year against the same period last year0.0%
  • ADB installation rate10 %
    Year on year against the same period last year+1.0%
  • Free cash flow294 Hundreds of millions of yen
    Year on year against the same period last year+1,625.8%
Segment results
Automotive Equipment Business
Net Sales
4,471 Hundreds of millions of yen+1.6%
Operating profit
449 Hundreds of millions of yen-4.3%
Components Business
Net Sales
393 Hundreds of millions of yen+6.1%
Operating profit
28 Hundreds of millions of yen+15.6%
Electronic applied products business
Net Sales
1,125 Hundreds of millions of yen-3.2%
Operating profit
93 Hundreds of millions of yen+5.6%
Other
Net Sales
32 Hundreds of millions of yen
Operating profit
1 Hundreds of millions of yen
Medium-term management plan targets
Target fiscal yearFiscal 2029
Net Sales
7,000 Hundreds of millions of yen
Operating profit margin
10 %
ROE
10 %
ROIC
9 %
Financial targets
ROE
Target value10 %
Actual value7 %
ROIC
Target value9 %
Actual value5.8 %
Equity ratio
Fiscal year ending March 2027: plan50 %
Capital expenditures
¥603 100 million fiscal year ending March 2026
Annual Dividend
Fiscal year ending March 2026
Annual¥104
Interim¥49
End of period¥55
Fiscal year ending March 2027: plan
Annual¥111
Interim¥55
End of period¥56
Payout ratio
The higher of a payout ratio of at least 40% or DOE of at least 3.5%
Acquisition of treasury shares
¥30–35 billion (fiscal year ending March 2027 plan)
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales5,184 Hundreds of millions of yen (YoY +1.7%)
Operating profit426 Hundreds of millions of yen (YoY -12.9%)
Ordinary income508 Hundreds of millions of yen (YoY -8.3%)
Net income328 Hundreds of millions of yen (YoY +2.4%)
Operating profit margin8.2
Full-year earnings forecastFiscal Period Covered Fiscal year ending March 2027 / Net Sales 6,220 Hundreds of millions of yen / Operating profit 550 Hundreds of millions of yen / Ordinary income 580 Hundreds of millions of yen / Net income 340 Hundreds of millions of yen / ROE 7.7 % / Equity ratio 50 % / Free cash flow -670 Hundreds of millions of yen / Earnings per share ¥276.62
Segment resultsAutomotive Equipment Business Net Sales 4,471 Hundreds of millions of yen (YoY +1.6%) / Operating profit 449 Hundreds of millions of yen (YoY -4.3%) / Components Business Net Sales 393 Hundreds of millions of yen (YoY +6.1%) / Operating profit 28 Hundreds of millions of yen (YoY +15.6%) / Electronic applied products business Net Sales 1,125 Hundreds of millions of yen (YoY -3.2%) / Operating profit 93 Hundreds of millions of yen (YoY +5.6%) / Other Net Sales 32 Hundreds of millions of yen / Operating profit 1 Hundreds of millions of yen
Breakdown of Factors Affecting the ChangeOperating profit, fiscal year ended March 2026 Rationalization benefits and production innovation 65 / Revenue impact -51 / Impact on pricing 1 / Higher personnel expenses -20 / Strategic costs -15 / Higher other expenses -23 / Foreign Exchange Effects 1 / Tariff impact -48 / Tariff recovery 41 / Non-Recurring Expenses -15 / Operating profit plan for the fiscal year ending March 2027 Rationalization benefits and production innovation 143 / Revenue impact 29 / Impact on pricing -113 / Strategic costs 29 / Higher other expenses -41 / Foreign Exchange Effects -4 / One-off impact 55 / Impact of newly consolidated companies 24
Key KPIsIndicator name ROE / Value 7 % / Year on year against the same period last year 0.7 %, Indicator name Equity ratio / Value 56.1 % / Year on year against the same period last year -8.7 %, Indicator name Non-Japanese sales ratio / Value 1.8 % / Year on year against the same period last year 0 %, Indicator name ADB installation rate / Value 10 % / Year on year against the same period last year 1 %, Indicator name Free cash flow / Value 294 Hundreds of millions of yen / Year on year against the same period last year 1,625.8 Hundreds of millions of yen
Assumptions Underlying the Business OutlookExchange rate USD/JPY 150 / EUR/JPY 180 / IDR/JPY 0.01 / VND/JPY 0.01 / THB/JPY 4.71 / CNY/JPY 22.02 / Newly consolidated 岩崎電気, Stanley Mobility Electric / Foreign exchange sensitivity Impact on revenue of a ¥1 depreciation of the yen 32 Hundreds of millions of yen / Impact on operating income of a ¥1 depreciation of the yen 3 Hundreds of millions of yen
Medium-term management plan targetsTarget fiscal year Fiscal 2029 / Net Sales 7,000 Hundreds of millions of yen / Operating profit margin 10 % / ROE 10 % / ROIC 9 %
Financial targetsROE Target value 10 % / Actual value 7 % / ROIC Target value 9 % / Actual value 5.8 % / Equity ratio Fiscal year ending March 2027: plan 50 %
Annual DividendFiscal year ending March 2026 Annual ¥104 / Interim ¥49 / End of period ¥55 / Fiscal year ending March 2027: plan Annual ¥111 / Interim ¥55 / End of period ¥56
Payout ratioThe higher of a payout ratio of at least 40% or DOE of at least 3.5%
Acquisition of treasury sharesAmount ¥30–35 billion (fiscal year ending March 2027 plan) / Period Not disclosed / Number of Shares Not disclosed
Capital expenditures¥603 100 million (fiscal year ending March 2026)
New initiativesMaking 岩崎電気 a subsidiary and newly consolidating it, Entry into the ADAS systems field by Stanley Mobility Electric, Expanding orders from non-Japanese OEMs, Development of automotive LiDAR and ADAS technologies, Development of new backlight technologies for the automotive market, Execution of the 9th Medium-Term Management Plan, Structural, component, supply chain, and SG&A reforms under PROJECT NO BORDER, Improving productivity through dark factories and AI and data integration
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders 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 company cited the impact of the semiconductor shortage and the occurrence of one-time expenses as reasons for the decline in earnings for the fiscal year ending March 2026. It identified rationalization benefits and production innovation, sales impact, pricing impact, higher personnel expenses, strategic expenses, higher other expenses, foreign exchange impact, tariff impact, tariff recovery, and one-time expenses as factors affecting the change in operating income. Factors expected to drive higher earnings in the fiscal year ending March 2027 include the contribution from 岩崎電気, improvements in material costs, and expense reviews.

How to read this page

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Full-year results for the fiscal year ending March 2026 (121st fiscal period) / Medium-term management plan | Stanley Electric Co.,Ltd. (6923) timely disclosure | Komori