NORITZ Corporation (5943): FY2025 Results Summary — Operating Income Up 79.5% on Domestic Eco-Friendly Products and Overseas Recovery

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

NORITZ Corporation reported FY2025 full-year (cumulative) net sales of 202,049 million yen, down 154 million yen (0.1%) year on year, while operating income rose 1,904 million yen (79.5%) to 4,300 million yen. Ordinary income increased 54.9% to 5,544 million yen, but net income attributable to shareholders of the parent company declined 23.4% to 3,358 million yen. Domestic sales increased on price revisions and expanded sales of eco-friendly products, while overseas sales declined on continued weak market conditions in China even as profit improved on a recovery in North America and strong performance in Australia.

Consolidated Results (FY2025 Full Year, Cumulative)

On the Overview slide, the company summarized net sales of ¥202.0bn (down ¥0.1bn YoY), operating income of ¥4.3bn (up ¥1.9bn YoY) and profit of ¥3.3bn (down ¥1.0bn YoY). By region, domestic net sales were ¥136.7bn (up ¥3.2bn YoY) and overseas net sales were ¥65.3bn (down ¥3.4bn YoY); domestic operating income was ¥2.1bn (up ¥0.7bn YoY) and overseas operating income was ¥2.1bn (up ¥1.1bn YoY). Overall, sales decreased while profit increased. Average exchange rates were USD = ¥149.75, CNY = ¥20.88 and AUD = ¥96.60.

Item (Millions of yen, unless otherwise stated)	FY2025 Cumulative	FY2024 Cumulative	YoY Change (amount)	YoY Change (%)
Net sales	202,049	202,204	(154)	(0.1)
Domestic business	136,748	133,486	+3,261	+2.4
Overseas business	65,301	68,717	(3,416)	(5.0)
Operating income	4,300	2,395	+1,904	+79.5
Domestic business	2,121	1,364	+757	+55.5
Overseas business	2,179	1,031	+1,147	+111.3
Ordinary income	5,544	3,579	+1,964	+54.9
Net income attributable to shareholders of parent company	3,358	4,383	(1,024)	(23.4)

Domestic Business

Domestic net sales rose 2.4% to 136,748 million yen and operating income rose 55.5% to 2,121 million yen. The company stated that sales and profit increased, driven by strong performance of new hybrid products and growth in eco-friendly products in water heaters and HVAC, and that profit from non-residential applications also steadily increased. In kitchen appliances, high-end range hoods and built-in gas cookers performed well, while challenges remain in mid-range and standard models.

Domestic Business (Millions of yen, unless otherwise stated)	FY2025 Cumulative	FY2024 Cumulative	YoY Change (amount)	YoY Change (%)
Net sales	136,748	133,486	+3,261	+2.4
Water heaters and HVAC	111,356	108,249	+3,107	+2.9
o/w Residential	101,414	99,158	+2,256	+2.3
o/w Non-residential	9,942	9,091	+851	+9.4
Kitchen appliances	16,448	16,747	(298)	(1.8)
Other	8,943	8,489	+453	+5.3
Operating income	2,121	1,364	+757	+55.5

Overseas Business by Area

Overseas net sales fell 5.0% to 65,301 million yen while operating income more than doubled to 2,179 million yen (up 111.3%). In China, profit increased through cost control despite continued weak market conditions. North America saw increased revenue due to strong performance across all segments, achieving full-year profitability, with operating income of 519 million yen against a loss of (156) million yen in FY2024. In Australia, tankless and heat pump sales remained strong and cost reductions were successful, leading to increased sales and profit.

Area / Metric (Millions of yen, unless otherwise stated)	FY2025 Cumulative	FY2024 Cumulative	YoY Change (amount)	YoY Change (%)
China — Net sales	32,227	37,631	(5,403)	(14.4)
China — Operating income	235	36	+198	+537.8
North America — Net sales	19,206	17,285	+1,920	+11.1
North America — Operating income	519	(156)	+675	ー
Australia — Net sales	11,837	11,799	+37	+0.3
Australia — Operating income	1,310	1,007	+303	+30.1
Other — Net sales	2,029	2,001	+28	+1.4
Other — Operating income	113	142	(29)	(20.7)
Total — Net sales	65,301	68,717	(3,416)	(5.0)
Total — Operating income	2,179	1,031	+1,147	+111.3

FY2026 Targets

Under the “V-plan 26” medium-term management plan, the company set FY2026 revised targets of 210,000 million yen in net sales (up 7,950 million yen), 4,500 million yen in operating income (up 200 million yen), 5,500 million yen in ordinary income (down 44 million yen) and 8,600 million yen in net income attributable to shareholders of the parent company (up 5,242 million yen), with ROE targeted at over 6.0% against 2.5% in FY2025. Assumed exchange rates for 2026 are USD = ¥153.0, CNY = ¥21.7 and AUD = ¥101.1.

Item (Millions of yen, unless otherwise stated)	FY2026 Revised Targets	FY2025 Results	FY2024 Results	YoY Change
Net sales	210,000	202,049	202,204	+7,950
Domestic business	140,000	136,748	133,486	+3,252
Overseas business	70,000	65,301	68,717	+4,699
Operating income	4,500	4,300	2,395	+200
Domestic business	2,200	2,121	1,364	+79
Overseas business	2,300	2,179	1,031	+121
Ordinary income	5,500	5,544	3,579	(44)
Net income attributable to shareholders of parent company	8,600	3,358	4,383	+5,242
ROE (%)	Over 6.0	2.5	3.5	ー

By area, the FY2026 revised overseas targets are net sales of 34,400 million yen in China (operating income 630 million yen), 20,300 million yen in North America (operating income 270 million yen), 13,200 million yen in Australia (operating income 1,220 million yen) and 2,100 million yen in Other (operating income 180 million yen). Stated priorities are to stabilize earnings in China and North America and to establish a business foundation in Southeast Asia. For the domestic business, the FY2026 target for water heaters and HVAC is 113,500 million yen (residential 103,000 million yen, non-residential 10,500 million yen), kitchen appliances 17,000 million yen and other 9,500 million yen.

Shareholder Returns

This cannot be confirmed from the materials. The Full Year FY2025 Briefing Material does not contain a dividend or shareholder return section.

Medium-Term Plan and Topics

On cost reduction, the company reported FY2025 results of ¥1,055mn (V-Plan 26 cumulative total: 1,357mn) excluding material price fluctuations and cost increases due to procurement of market-distributed products, against a V26 target of ¥3.0bn in total by FY2026. It stated that it realized smart manufacturing by establishing production system infrastructure and improved the in-house production ratio, through reduced material costs, a smart factory, and maximized added value through in-house production.

For FY2026, domestic initiatives include boosting top-line growth by expanding sales of high value-added products (eco-friendly and social issue–solving products), expanding sales of commercial-use water heaters and production-driven sectors by leveraging the non-residential installed base and high market share, promoting communication strategies to convey value, and realizing competitive cost levels through cost improvement. Overseas, the company plans to expand operations outside Shanghai and strengthen the kitchen appliances section in China, optimize channel mix and expand sales of commercial equipment in North America, maintain stable organic growth in Australia, and establish a business foundation in Southeast Asia.

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.