Niterra (5334): FY2025 Results Summary — Record Revenue and Operating Profit for a Fifth Straight Year

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

Niterra Co., Ltd. reported FY2025 results (the fiscal year ended March 31, 2026) with revenue of 731.2 billion yen, up 78.2 billion yen or 12.0% year on year, and operating profit of 138.1 billion yen, up 8.5 billion yen or 6.6%. According to the materials, both sales revenue and operating profit achieved record highs for the fifth consecutive fiscal year. Profit attributable to owners of the parent rose 20.3 billion yen or 21.9% to 112.8 billion yen. The annual dividend per share is 205 yen, a 27 yen increase from the previous fiscal year, and for FY2026 the company plans revenue of 790.0 billion yen, operating profit of 150.0 billion yen and a dividend of 210 yen per share.

Consolidated Results (Full-Year Actual)

The company presents its results under IFRS in billions of yen. Revenue increased on steady performance in both OEM assembly and aftermarket products in spite of decreasing production volume of ICE vehicles, and operating profit increased driven by the excellent results of sales revenue and the appropriate implementation of price pass-through. Profit before income taxes rose 24.1% to 165.4 billion yen, and the operating profit ratio was 18.9% versus 19.9% in FY2024. The presentation states that the first year of the medium-term management plan is going well.

Item (Billion yen)	FY2025	FY2024	Difference
Revenue	731.2	652.9	+78.2 / +12.0%
Operating profit (ratio)	138.1 (18.9%)	129.6 (19.9%)	+8.5 / +6.6%
Profit before income taxes (ratio)	165.4 (22.6%)	133.3 (20.4%)	+32.2 / +24.1%
Profit attributable to owners of the parent (ratio)	112.8 (15.4%)	92.6 (14.2%)	+20.3 / +21.9%
FOREX: US dollar	151 yen	153 yen	2 yen, Strong yen
FOREX: Euro	175 yen	164 yen	11 yen, Weak yen

On the foreign exchange impact page, the company shows average rates of 150.8 yen for the US dollar in FY2025 against 152.6 yen in FY2024, and 174.8 yen for the euro against 163.7 yen. The total FOREX impact on operating profit was +59, with the euro contributing +35 and the Thai baht +36, while the US dollar was -10 and Others -11.

Segment Results

By product line, spark plug sales revenue increased by 8% year on year as sales in OEM assembly rose on solid demand for ICE vehicles with the slowdown in the shift to EVs, and aftermarket products continued strong in every region. Sensor sales revenue increased by 9%, driven by growth in sales volume on the same solid ICE vehicle demand. Component solution revenue increased by 27%: in the SPE business, sales revenue rose with the increase in demand for generative AI-related applications and advanced logic semiconductor, while in the silicon nitride business the sales of Niterra Materials, which became a consolidated subsidiary in this fiscal year, contributed to the increase.

Segment	Metric (Billion yen)	FY2025	FY2024
Spark plug	Sales revenue	390.7	362.6
Sensor	Sales revenue	196.7	180.1
Component solution	Sales revenue	130.7	103.0
Total	Sales revenue	731.2	652.9
Automotive components	Operating profit	135.3	134.1
Component solution	Operating profit	-4.5	-6.2
Total	Operating profit	138.1	129.6

On operating profit, the automotive components business improved to 135.3 billion yen from 134.1 billion yen by reason of increased sales in both OEM assembly and aftermarket products in addition to the implementation of price pass-through to address inflation and US tariffs. The component solution business narrowed its loss to -4.5 billion yen from -6.2 billion yen: SPE operating profit increased with rising volume in shipments driven by strong demand for semiconductors, while the medical business saw operating profit decrease due to the continuous intensification of competition in North America and Europe in addition to an impairment loss.

By region, the company estimates global ICE automotive production volume fell 4.5% while its own automotive component sales amounts excluding FOREX rose 8.0% for spark plugs and 8.6% for sensors. Spark plug sales volume rose 3.4% in OEM and 2.2% in aftermarket, and sensor sales volume for exhaust gas rose 0.4% on a global total basis. India stood out with sales amounts up 73.7% and sales volume up 67.8%.

FY2026 Forecast

For FY2026 the company aims for record-high revenue and operating profit for the sixth consecutive fiscal year, assuming 1 US dollar = 150 yen and 1 Euro = 180 yen. Sales revenue is expected to increase driven by steady demand for automotive components in addition to vigorous demand for semiconductor products, and record-high operating profit is targeted by implementing appropriate price pass-through in response to market trends as a measure against soaring raw material prices. Profit before income taxes and profit attributable to owners of the parent are planned lower than FY2025; the materials note that valuation gains and losses on investment securities are not included.

Item (Billion yen)	FY2026 Plan	FY2025 (Actual)	Difference
Revenue	790.0	731.2	+58.0 / +8.0%
Operating profit (ratio)	150.0 (19.0%)	138.1 (18.9%)	+11.8 / +8.6%
Profit before income taxes (ratio)	150.0 (19.0%)	165.4 (22.6%)	-15.5 / -9.4%
Profit attributable to owners of the Parent (ratio)	105.0 (13.3%)	112.8 (15.4%)	-7.9 / -7.0%
FOREX: US dollar	150 yen	151 yen	1.0 yen, Strong yen
FOREX: Euro	180 yen	175 yen	5.9 yen, Weak yen

Segment	Metric (Billion yen)	FY2026 Plan	FY2025
Spark plug	Sales revenue	409.9	390.7
Sensor	Sales revenue	213.5	196.7
Component solution	Sales revenue	155.4	130.7
Total	Sales revenue	790.0	731.2
Automotive components	Operating profit	141.5	135.3
Component solution	Operating profit	8.3	-4.5
Total	Operating profit	150.0	138.1

The plan assumes that precious metal prices will continue to increase and remain in a high price range, with the assumed base price for platinum rising by approximately 30% year on year and iridium by approximately 70%. The plan does not include an increase in energy prices due to soaring crude oil prices linked to the situation in the Middle East, and the company says it will mitigate the effects of U.S. tariffs by optimizing production sites and procurement destinations in addition to steadily implementing price pass-through.

Shareholder Returns

The annual dividend per share for FY2025 is 205 yen, a 27 yen increase from the previous fiscal year, under the hybrid shareholder return policy of stable dividend and performance-linked dividend. The total payout ratio of FY2025 was 49.2%. Approximately 15 billion yen of the 30 billion yen share repurchase resolved in October 2025 was executed in the fiscal year ended March 2026. The dividend for FY2026 is expected to be 210 yen per share, a 5 yen increase, under the stable dividend policy.

Item	FY2024	FY2025	FY2026 (Forecast)
Dividend per share (yen)	178	205	210
Total payout ratio	Not stated in the materials	49.2%	Not stated in the materials

Progress of the Mid-Term Management Plan 2030

The company reports that PBR consistently exceeded 1x and increased year on year in the fiscal year ended March 2026, at 1.9x against 1.3x in FY2024. ROE increased to 15.7% from 14.1%, while shareholder equity cost is recognized to be around 8-10% and the equity spread is expanding. PER was approximately 14x against approximately 10x in FY2024, which the company presumes is due to expectations for the ICE business driven by continuous growth in EPS. To enhance corporate value, Niterra says it will pursue the dual drivers of further improving both ROE and PER.

In the SPE business, products centered on electrostatic chucks are used in a wide range of semiconductor processes for both logic and memory applications, and the company expects its sales to exceed the wafer fab equipment market growth rate. A new NTK CERATEC plant is under construction with headquarters in Sendai city, Miyagi prefecture, bringing the number of manufacturing sites to three; capacity will gradually be increased until around 2030 to approximately 2.5 times that of FY2025, and manufacturing is scheduled to start within this fiscal year. In the silicon nitride business, the company aims to expand its product lineup for xEVs by acquiring Niterra Materials, formerly Toshiba Materials, which possessed strengths in silicon nitride technology.

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.