Seiren (3569): FY2025 Results Summary — Fifth Straight Year of Record Profits on Automotive Interior and Electronics

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Seiren’s fiscal year ends on March 31. In the company’s materials, “FY2025” refers to the fiscal year ended March 31, 2026, and “FY2026” refers to the fiscal year ending March 2027; this article keeps those labels.

On May 13, 2026, SEIREN CO., LTD. released its Presentation of Financial Results for FY2025 (Fiscal Year Ending March 2026). Sales rose 7.6% year on year to 171,765 million yen, operating profit rose 16.6% to 20,832 million yen, ordinary profit rose 14.2% to 22,005 million yen, and net income attributable to shareholders of the parent company rose 12.3% to 15,599 million yen, with all four reaching record highs. The company describes the year as its fifth consecutive fiscal year of increased sales and profits and of record-high profits, driven by the Automotive Interior and Electronics businesses. The annual dividend was ¥76 per share (+¥8 year on year), and for FY2026 the company plans increased sales and operating profit and record-high operating profit for a sixth consecutive year.

Consolidated Results (Full-Year Actual)

In the Automotive Interior business, the company reports record-high sales and profits driven by increased domestic orders, the launch of new overseas car models, and cost reductions. In Electronics, record-high sales and profits were driven by solid performance in semiconductor-related businesses along with revenue contributions from artificial satellites. The operating profit ratio improved from 11.2% to 12.1%. Equipment investment (cash flow basis) rose 80.6% to 10,439 million yen, of which 4,332 million yen was domestic and 6,107 million yen (59%) was overseas.

Item (million yen)	FY2025 Actual	FY2024 Actual	Change	Change (%)
Sales	171,765	159,653	+12,112	+7.6%
Operating profit	20,832	17,865	+2,966	+16.6%
Operating profit ratio	12.1%	11.2%	–	–
Ordinary profit	22,005	19,277	+2,728	+14.2%
Net income attributable to shareholders of the parent company	15,599	13,887	+1,711	+12.3%
Depreciation expense	6,284	6,030	+253	+4.2%
Equipment investment	10,439	5,781	+4,657	+80.6%

Below operating profit, non-operating profit and loss was -238 million yen year on year, including a -210 million yen change in subsidy income (146 million yen vs. 356 million yen) and a -205 million yen change in foreign exchange gains/losses (38 million yen vs. 243 million yen), partly offset by a +417 million yen improvement in loss on valuation of securities. Extraordinary profit or loss improved by 308 million yen, including a 463 million yen gain on sale of investment securities, while corporate tax, etc. was -1,325 million yen year on year, reflecting an increase in corporate taxes at overseas subsidiaries. Total assets at the end of March 2026 were 223,926 million yen (+24,703 million yen from the previous fiscal year-end), and the equity ratio was 71.8% (71.7% at the previous fiscal year-end).

Segment Results

Automotive Interior, Electronics, and Environmental & Life materials achieved record-high sales and profits. In Automotive Interior, Seiren on a standalone basis saw increased car seat material orders as a rebound from the previous year’s production halt by domestic automakers; overseas, Mexico gained orders from the launch of new car models, China saw a recovery in sales to certain Japanese automakers and steady sales to certain Chinese automakers, and Asia increased car seat material sales, while U.S. sales declined as a rebound from the previous year’s strong performance. Electronics benefited from steady sales of products for video game consoles and mobile devices, revenue from artificial satellite sales, and solid sales of silicon wafer thermal oxide processing at SEIREN Advanced Materials. Environmental & Life materials and Others added sales following the consolidation of NB SEIREN. In High-fashion, materials for sports and outdoor use were strong while fashion apparel weakened.

Segment (million yen)	Sales FY2025	Sales FY2024	Sales change	Operating profit FY2025	Operating profit FY2024	Operating profit change
Automotive Interior	115,258	109,816	+5.0%	16,199	13,954	+16.1%
High-fashion	21,324	21,342	-0.1%	1,411	1,419	-0.6%
Electronics	13,388	10,982	+21.9%	3,086	1,845	+67.2%
Environmental & Life materials	13,284	9,997	+32.9%	1,033	984	+4.9%
Medical	6,676	6,786	-1.6%	739	690	+7.0%
Others	1,832	727	2.5x	558	517	+7.9%
Consolidated adjustment	–	–	–	-2,195	-1,546	–
Total	171,765	159,653	+7.6%	20,832	17,865	+16.6%

Overseas subsidiaries’ sales totaled 123,818 million yen, up 3.1% in yen terms (+4.4% in local currency). The largest contributor, Seiren Suzhou, recorded 44,742 million yen (+2.5%), followed by Seiren Viscotec Mexico at 21,059 million yen (+6.6%), while Seiren North America recorded 12,825 million yen (-11.6%).

FY2026 Forecast

For FY2026, Seiren forecasts sales of 190,300 million yen (+10.8%) and operating profit of 20,900 million yen (+0.3%), both new record highs, while ordinary profit and net income attributable to shareholders of the parent company are expected to decline to 21,100 million yen and 15,000 million yen, respectively. The company states that the plan partially factors in the negative impact of heightened tensions in the Middle East, and that it will enhance productivity and reduce costs through the use of AI and robotics while mitigating energy procurement risks through fuel conversion. Electronics (semiconductors, artificial satellites, wiping cloths, etc.) is expected to remain steady, and NB SEIREN is promoting structural reforms with the aim of turning profitable. The forecast assumes one US dollar at 152 yen and one Chinese yuan at 21.5 yen. Equipment investment is planned at 15,300 million yen (domestic 8,150 million yen, overseas 7,150 million yen).

Item (million yen)	FY2026 Forecast	FY2025 Actual	Change	Change (%)
Sales	190,300	171,765	+18,534	+10.8%
Operating profit	20,900	20,832	+67	+0.3%
Operating profit ratio	11.0%	12.1%	–	–
Ordinary profit	21,100	22,005	-905	-4.1%
Net income attributable to shareholders of the parent company	15,000	15,599	-599	-3.8%
Depreciation expense	7,300	6,284	+1,015	+16.2%
Equipment investment	15,300	10,439	+4,860	+46.6%

Shareholder Returns

The annual dividend for FY2025 was ¥76 per share (interim ¥38, year-end ¥38), up ¥8 from ¥68 in FY2024, for a consolidated payout ratio of 28.63% and a total return ratio of 28.65%. For FY2026 the company plans an annual dividend of ¥76 per share (payout ratio 29.80%). A share repurchase program of up to 2 million shares and ¥6.0 billion has been authorized for FY2026; the company notes that the FY2026 forecast does not reflect the impact of share repurchases. As part of its initiatives to improve PBR, the company lists proactive share buybacks and shareholder returns with a target payout ratio of approx. 30%.

Item	FY2024	FY2025	FY2026 Forecast
Interim dividend (yen)	30.00	38.00	38.00
Term-end dividend (yen)	38.00	38.00	38.00
Annual dividend (yen)	68.00	76.00	76.00
Net profit per share (consolidated, yen)	242.29	265.48	255.07
Payout ratio (consolidated, %)	28.07	28.63	29.80
Total return ratio (%)	72.06	28.65	29.80

Medium-Term Plan and Topics

Under its Consolidated Medium-Term Plan (FY2026–2028), Seiren aims to achieve eight consecutive fiscal years of increased sales and operating profit, and record-high operating profit for eight consecutive fiscal years, by FY2028. The medium-term goals are consolidated sales of 190 billion yen, 191 billion yen and 195 billion yen, and consolidated operating profit of 20.9 billion yen, 22.1 billion yen and 23.7 billion yen, for FY2026, FY2027 and FY2028, respectively, with the operating profit ratio rising from 11.0% to 12.2%.

The company aims to maintain ROE of 10% or higher, exceeding its cost of equity of 6.6–9.1%; ROE for FY2025 was 10.27%. It continues to invest in eight growth areas, including carbon fiber, semiconductors, artificial satellites, electronics materials, non-textile Viscotecs, car seat cover materials for next-generation vehicle models (BEV, HEV, PHEV) and integrated production airbags. In the equipment investment plan revised in May 2026, total investment for FY2025–2027 is 38.9 billion yen, consisting of 29.1 billion yen in growth investments and 9.8 billion yen in maintenance investments. The revised three-year cash allocation assumes operating cash flow of ¥59.0 billion and cash on hand of ¥30.0 billion as sources.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.