MARUWA (5344): FY2025 Results Summary — Record Fourth Quarter on Telecommunication Demand

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

MARUWA CO., LTD. reported FY2025 net sales of 74,476 million yen, up 3.7% from the previous year, while operating profit declined 7.2% to 24,976 million yen and net profit declined 5.6% to 18,163 million yen. In the fourth quarter (January to March), both net sales and operating profit reached record quarterly highs. Supported by growing tele-communication and semiconductor demand, the company expects further growth in FY2026 and forecasts record-high results, with net sales of 84,100 million yen and operating profit of 29,700 million yen.

Consolidated Results (Full-Year Actual)

Net sales rose year on year while all profit lines declined. The figures below are presented as in the company’s materials (Unit: Million; Currency: YEN).

Item	FY2025	Increase/Decrease from last year	FY2024
Net sales	74,476	＋3.7%	71,849
Operating profit	24,976	△7.2%	26,914
Ordinary profit	26,321	△2.6%	27,033
Net profit	18,163	△5.6%	19,242

Quarterly Consolidated Operating Results

The company states that in Q4 both net sales and operating profit reached record quarterly highs. FY2025 quarterly net sales were 17,256 million yen (1Q), 15,859 million yen (2Q), 19,110 million yen (3Q) and 22,251 million yen (4Q), with operating profit of 6,002 million yen, 4,841 million yen, 6,281 million yen and 7,852 million yen respectively. The operating profit margin was 34.8%, 30.5%, 32.9% and 35.3% by quarter. Supported by growing tele-communication and semiconductor demand, the company expects further growth in FY2026.

Sales Breakdown by Market (Fourth Quarter)

The company discloses its sales breakdown by market for the fourth quarter. In tele-communication, mass production for a successor model related to next-generation high-speed communications has started to ramp up significantly. In automobile, demand for new energy vehicles is recovering from soft market conditions in the first half. In SPE, although there had been a delay in the recovery of general-purpose memory, recovery is steadily improving. The company notes that the figures are preliminary and that amounts are rounded to the nearest 100 million (Unit: 100 million; Currency: YEN).

Market	FY2025 4Q (Jan.–Mar.)	YoY	FY2024 4Q
Tele-communication	107	＋45%	74
Automobile	37	△10%	41
SPE	25	△4%	26
Industrial equipment	18	△5%	19
Lighting	35	＋25%	28

On a composition basis, tele-communication accounted for 48.2% of fourth-quarter sales in FY2025 versus 39.4% in FY2024 4Q, with automobile at 16.7% (from 21.8%), SPE at 11.3% (from 13.8%), industrial equipment at 8.1% (from 10.1%) and lighting at 15.8% (from 14.9%).

FY2026 Forecast

The company expects record-high results, with sales up 13% year on year driven by tele-communication and semiconductor. In telecommunications, demand is expected to remain strong, particularly for next-generation high-speed communication successor models (+23% YoY). In semiconductors, demand for general-purpose memory is expected to expand in earnest from the second half (+14%). The company states that it has set a cautious outlook, taking into account geopolitical risks such as the situation in the Middle East. The exchange assumption is 1 dollar = 153 yen (Unit: Million; Currency: YEN).

Item	FY total	YoY	1H	1H YoY	2H	2H YoY
Net sales	84,100	＋12.9%	39,400	＋19.0%	44,700	＋8.1%
Operating profit	29,700	＋18.9%	13,500	＋24.5%	16,200	＋14.6%
Operating profit %	35.3%	―	34.3%	―	36.2%	―

Market Trends and Outlook

By market, the company guides to tele-communication +23% YoY, automobile +2%, SPE +14%, industrial equipment +1% and lighting +1%. In tele-communication, demand for a successor model related to next-generation high-speed communications is expected to grow further, and the company will strengthen production capacity through the commencement of operations at a new building at the Seto Plant. In automobile, amid moderating growth in the new energy vehicle market, the company aims to achieve growth by further expanding market share through differentiated products and to strengthen earnings by introducing AI and robotics. In SPE, to meet robust demand, the company will enhance production capacity through the start of operations at two new buildings at the Miharu Plant. In industrial equipment, new products in the medical field are expected to increase. In lighting, performance is expected to remain strong, supported by increasing LED demand driven by the government’s target of fully transitioning from fluorescent lighting to LED lighting by 2030.

Capital Investment and Depreciation

The company states that FY2025 saw the largest-ever level of investment, at 22.5 billion yen (FY2025 actual). Depreciation was 5.3 billion yen (FY2025 actual). The company says it will actively invest in capacity expansion to meet growing demand, as well as in developing new technologies and exploring new markets, and that this will steadily lead to improved competitiveness and productivity. It also notes that it will closely monitor market conditions and respond flexibly to the start-up of new equipment.

New Plants

For tele-communication (next generation), the Seto plant’s Building 1 was completed in FY23 as a new plant and is currently ramping up; Building 2 (capacity expansion) was completed in FY25 and is scheduled to commence operations in FY26; Building 3 (capacity expansion) is to be completed in FY27 and is under construction; an R&D center is to be completed in FY28 and is before the start of construction. For SPE, the Miharu plant’s Building 6 and Building 7 (capacity expansion) were completed in FY25 and are scheduled to commence operations in FY26, and the Toki plant’s Building S2 (capacity expansion) was completed in FY25 and is scheduled to commence operations in FY26. For automobile (xEV), the Toki plant’s Building N2 (capacity expansion) was completed in FY23 and is currently ramping up, and Building N3 (capacity expansion) was completed in FY25 and is scheduled to commence operations in FY26.

Shareholder Returns

The company plans to pay an annual dividend of ¥110 per share, an increase of ¥8, which it states marks the 14th consecutive year of dividend increases. It aims to balance investments for growth and development with sustainable, continuous dividend increases, and says it will continue to steadily deliver consecutive dividend increases going forward.

Fiscal year end	Interim	Year-end	Full year
24/3	43	43	86
25/3	47	47	94
26/3	51	51	102
27/3	55	55	110

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.