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Earnings6998Nippon Tungsten Co.,Ltd.Electrical Equipment and Precision Instruments

Financial Results for the Fiscal Year Ending March 2026 (Japanese GAAP) (Consolidated)

For the fiscal year ended March 2026, net sales, operating income and ordinary income increased, while net income attributable to owners of the parent declined substantially due to the recognition of an impairment loss of ¥797 million on fixed assets. For the fiscal year ending March 2027, the company forecasts higher net sales and operating income, and has raised its annual dividend forecast from ¥50 to ¥60 per share. It has also changed its dividend policy to target a payout ratio of approximately 40% and set a minimum annual dividend of ¥60 per share.

Worth reading
47Recurring
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
797
¥ million
Wording
Conditional
How definitive the wording is.

Results for this period

Full year1 April 2025–31 March 2026ConsolidatedJapanese GAAP
Net Sales12,776¥ millionYear on year +3.1%Progress 85.2%
Operating profit713¥ millionYear on year +3.5%Progress 97.7%
Ordinary income1,133¥ millionYear on year +18.9%Progress 112.2%
Net income attributable to owners of the parent270¥ millionYear on year -60.0%Progress 37.5%

The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit. The dotted outline is the full-year forecast and the band inside it is the result for this period. The progress rate is the result divided by the forecast.

Net income per share¥55.76
Operating MarginCurrent fiscal year 5.6 % / Previous period 5.6 %
Financial position at period-end
Total assets18,931¥ million
of which net assets 13,343 ¥ millionEquity ratio 70.4%vs. prior year-end -0.8pt

塗りつぶした部分が自己資本比率です。総資産のうち、返済のいらない自前の資金がどれだけかを表します。The thin vertical line indicates the level at the end of the previous fiscal year.

Cash inflows and outflows
Operating+984
Investment-851
Financials-263
Net change-130

Stacked from zero: upward is an increase in cash, downward a decrease (in ¥ million).The net change represented by the dotted line is the total of three items, calculated from figures provided by the company.

Cash and cash equivalents at end of period¥3,195 million
Segment revenueMachinery Components business ¥6,837 million (YoY -4.1%), Electrical Components business ¥5,939 million (YoY +12.7%)
Segment profitMachinery Components business ¥662 million (YoY -25.2%), Electrical Components business ¥659 million (YoY +65.5%)
Outlook and shareholder returns
Full-year earnings forecast
Net Sales¥15,000 million (YoY +17.4%)
Operating profit¥730 million (YoY +2.3%)
Ordinary income¥1,010 million (YoY -10.9%)
Net income¥720 million (YoY +165.9%)
Annual Dividend Forecast¥50 → ¥60(+20.0%)
Payout ratioFiscal year ending March 2026 89.7 % / Forecast for the fiscal year ending March 2027 40.5 %
Shareholder Return PolicyThe dividend policy is to pay an annual dividend of at least ¥60 per share, with a target payout ratio of approximately 40% of net income attributable to owners of the parent. The company will also endeavor to acquire treasury shares.
Factors Behind Changes in Business Performance

Increased demand for sanitary equipment and medical components, automotive components and semiconductor manufacturing equipment-related products, new capital investment and expanded sales by overseas customers, and growing demand for power-supply terminal components contributed to higher net sales. This was partly offset by lower demand from China, a pause in demand from some customers and inventory adjustments. Operating income increased despite higher costs resulting from soaring raw material prices, supported by strong sales of priority products, the passing on of higher costs through the prices of certain products, and solid performance by subsidiaries. Ordinary income increased due to gains on the sale of scrap, equity in earnings of affiliates accounted for using the equity method, and foreign exchange gains. Net income declined due mainly to the ¥797 million impairment loss on fixed assets.

Disclosure regarding the going concern assumption

No applicable matters

Change in accounting policy
基準改正に伴う変更 Noそれ以外の変更 No見積りの変更 No修正再表示 No
Changes in the scope of consolidationNew — companies / Excluded — companies / Company name Not disclosed
Material subsequent eventsNot applicable.
Impairment loss¥797 million
Breakdown of extraordinary income (loss)Extraordinary income Not disclosed / Extraordinary loss Impairment Losses ¥797 million
Depreciation and amortization¥678 million
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingEvent No / Subject person Not disclosed
Issued Shares at Period-End5,155,520 shares
Treasury Shares at Period-End298,427 shares
Results for this period
ItemDetails
Fiscal Period ClassificationFull year
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 April 2025–31 March 2026
Net Sales¥12,776 million (YoY +3.1%)
Operating profit¥713 million (YoY +3.5%)
Ordinary income¥1,133 million (YoY +18.9%)
Profit attributable to owners of the parent¥270 million (YoY -60.0%)
Net income per share¥55.76
Operating MarginCurrent fiscal year 5.6 % / Previous period 5.6 %
Equity ratioEnd of the current fiscal period 70.4 / End of previous period 71.2
Total assets¥18,931 million
Net assets¥13,343 million
Cash flows from operating activities¥984 million
Cash flows from investing activities¥-851 million
Cash flows from financing activities¥-263 million
Cash and cash equivalents at end of period¥3,195 million
Full-year earnings forecastNet Sales ¥15,000 million (YoY +17.4%) / Operating profit ¥730 million (YoY +2.3%) / Ordinary income ¥1,010 million (YoY -10.9%) / Net income ¥720 million (YoY +165.9%)
Annual Dividend Forecast¥50 → ¥60(+20.0%)
Payout ratioFiscal year ending March 2026 89.7 % / Forecast for the fiscal year ending March 2027 40.5 %
Shareholder Return PolicyThe dividend policy is to pay an annual dividend of at least ¥60 per share, with a target payout ratio of approximately 40% of net income attributable to owners of the parent. The company will also endeavor to acquire treasury shares.
Segment revenueMachinery Components business ¥6,837 million (YoY -4.1%), Electrical Components business ¥5,939 million (YoY +12.7%)
Segment profitMachinery Components business ¥662 million (YoY -25.2%), Electrical Components business ¥659 million (YoY +65.5%)
Depreciation and amortization¥678 million
Impairment loss¥797 million
Breakdown of extraordinary income (loss)Extraordinary income Not disclosed / Extraordinary loss Impairment Losses ¥797 million
Disclosure regarding the going concern assumptionNo applicable matters
Change in accounting policyChanges due to revisions to standards No / Other changes No / Change in accounting estimate No / Restatement No
Changes in the scope of consolidationNew — companies / Excluded — companies / Company name Not disclosed
Material subsequent eventsNot applicable.
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingEvent No / Subject person Not disclosed
Issued Shares at Period-End5,155,520 shares
Treasury Shares at Period-End298,427 shares
Factors Behind Changes in Business PerformanceIncreased demand for sanitary equipment and medical components, automotive components and semiconductor manufacturing equipment-related products, new capital investment and expanded sales by overseas customers, and growing demand for power-supply terminal components contributed to higher net sales. This was partly offset by lower demand from China, a pause in demand from some customers and inventory adjustments. Operating income increased despite higher costs resulting from soaring raw material prices, supported by strong sales of priority products, the passing on of higher costs through the prices of certain products, and solid performance by subsidiaries. Ordinary income increased due to gains on the sale of scrap, equity in earnings of affiliates accounted for using the equity method, and foreign exchange gains. Net income declined due mainly to the ¥797 million impairment loss on fixed assets.
Items this document does not state (3)
Revision to Earnings ForecastRegional salesOrders received and order backlog

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.

Net sales were supported by steady or growing demand in the sanitary equipment and medical components markets, the automotive components market and semiconductor manufacturing equipment-related markets, although they were affected by lower demand from China and a pause in demand from some customers. Operating income increased despite higher costs resulting from soaring raw material prices, supported by strong sales of priority products, the passing on of higher costs through the prices of certain products, and solid performance by subsidiaries. Ordinary income increased due to gains on the sale of scrap, equity in earnings of affiliates accounted for using the equity method, and foreign exchange gains. Net income declined due mainly to the ¥797 million impairment loss on fixed assets associated with lower profitability in the Machinery Components business.

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Financial Results for the Fiscal Year Ending March 2026 (Japanese GAAP) (Consolidated) | Nippon Tungsten Co.,Ltd. (6998) timely disclosure | Komori