ONEX CORPORATION (5987): FY2025 Results Summary — Operating Loss on Higher Labor Costs, Net Income Back in the Black on Plant Sales

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

Note: ONEX CORPORATION does not publish an English results presentation; this article is based on the company’s Japanese-language results presentation, with figures transcribed as reported. For the fiscal year ended June 2025 (2025年6月期), ONEX CORPORATION reported consolidated net sales of 5,053 million yen, an increase of 85 million yen or 1.7% year on year, as orders related to industrial machine tools increased while orders related to construction machinery remained sluggish. Rising personnel costs pushed the company to an operating loss of 47 million yen and an ordinary loss of 26 million yen, but net income returned to the black at 2 million yen, helped by the sale of the Nagano Plant and the Yamaguchi No.2 Plant. For the fiscal year ending June 2026 the company forecasts a return to operating profit, with the annual dividend forecast unchanged at 20 yen per share.

Consolidated Results (Full-Year Actual)

Net sales rose to 5,053 million yen from 4,967 million yen, an increase of 85 million yen (up 1.7%), which the company attributes to higher sales related to industrial machine tools. Gross profit declined 34 million yen (down 3.3%) to 996 million yen on higher personnel costs. The company posted an operating loss of 47 million yen against operating income of 55 million yen a year earlier, and an ordinary loss of 26 million yen against ordinary income of 41 million yen. Net income was 2 million yen, an improvement of 380 million yen from a net loss of 377 million yen in the prior year; the presentation cites the sale of the Nagano Plant and the Yamaguchi No.2 Plant, and notes that the prior year’s impairment of fixed assets and reversal of deferred tax assets did not recur. Net income per share was 1.75 yen and return on equity was 0.1%.

Item (million yen)	FY2025 (Year ended June 2025)	FY2024 (Year ended June 2024)	Change	Change (%)
Net sales	5,053	4,967	85	1.7%
Gross profit	996	1,030	△ 34	△ 3.3%
Operating income (loss)	△ 47	55	△ 103	–
Ordinary income (loss)	△ 26	41	△ 68	–
Net income	2	△ 377	380	–
Net income per share (yen)	1.75	△ 227.97	229.71	–
Return on equity (%)	0.1%	△ 6.9%	7.0%	–

The presentation breaks down the swing in operating income from 55 million yen in the year ended June 2024 to a loss of 47 million yen in the year ended June 2025 as follows: net sales +85 million yen, cost of sales -120 million yen and selling, general and administrative expenses -67 million yen.

Segment Results

ONEX CORPORATION operates two reporting segments, Metal Heat Treatment and Transportation, which accounted for 88% and 12% of consolidated net sales respectively in the year ended June 2025. Metal Heat Treatment sales were 4,450 million yen, up 19 million yen (up 0.4%), but the segment recorded a loss of 102 million yen against segment profit of 20 million yen a year earlier. Transportation sales were 602 million yen, up 66 million yen (up 12.3%), and segment profit rose 19 million yen (up 131.4%) to 33 million yen.

Segment	Metric (million yen)	FY2025 (Year ended June 2025)	FY2024 (Year ended June 2024)	Change	Change (%)
Metal Heat Treatment	Net sales	4,450	4,430	19	0.4%
Transportation	Net sales	602	536	66	12.3%
Metal Heat Treatment	Segment profit (loss)	△ 102	20	△ 122	—
Transportation	Segment profit	33	14	19	131.4%

Sales by Customer Industry

For ONEX and ONEX Tech Center (OTC) combined, the presentation shows the industry mix of sales in the year ended June 2025 as industrial machine tools 49.4% (46.0% in the prior year), automotive 32.7% (34.8%), construction machinery 12.3% (12.8%), electrical machinery 1.3% (1.4%) and other 4.4% (4.9%). In value terms, sales to industrial machine tools were 2,197 million yen versus 2,040 million yen a year earlier, automotive 1,455 million yen versus 1,542 million yen, and construction machinery 545 million yen versus 568 million yen. The company states that sales increased because industrial machine tool demand grew even though orders related to construction machinery were sluggish.

Financial Position and Cash Flow

Total assets at the end of June 2025 were 8,676 million yen, down 209 million yen. Current assets rose 58 million yen to 4,595 million yen, mainly reflecting a 221 million yen increase in cash and deposits and a 170 million yen decrease in trade receivables, while non-current assets fell 268 million yen to 4,081 million yen, mainly a 313 million yen decline in property, plant and equipment. Total liabilities decreased 185 million yen to 3,424 million yen, with current liabilities up 27 million yen at 1,778 million yen and non-current liabilities down 213 million yen at 1,646 million yen, reflecting 332 million yen of debt repayment and a 102 million yen increase in net defined benefit liability. Net assets were 5,252 million yen, down 23 million yen, and the equity ratio improved to 60.5% from 59.4%. On cash flows, operating activities provided 698 million yen (826 million yen a year earlier), investing activities provided 97 million yen (an outflow of 222 million yen a year earlier), free cash flow was 795 million yen (604 million yen), and financing activities used 574 million yen (423 million yen). Cash and deposits increased 221 million yen to 2,928 million yen.

Capital Expenditure

Consolidated capital expenditure in the year ended June 2025 was 297 million yen at ONEX, 39 million yen at OTC and 66 million yen at ONEX Line, compared with 199 million yen, 24 million yen and 61 million yen respectively in the prior year. The presentation notes that ONEX constructed a new warehouse during the year.

FY2026 Forecast

For the fiscal year ending June 2026 (2026年6月期), the company forecasts net sales of 5,138 million yen, up 85 million yen or 1.7%, operating income of 107 million yen against an operating loss of 47 million yen, ordinary income of 97 million yen against an ordinary loss of 26 million yen, and net income of 65 million yen versus 2 million yen. Forecast net income per share is 39.83 yen.

Item (million yen)	FY2026 Forecast (Year ending June 2026)	FY2025 (Actual)	Change
Net sales	5,138	5,053	85 (1.7%)
Operating income	107	△ 47	154
Ordinary income	97	△ 26	123
Net income	65	2	63
Net income per share (yen)	39.83	1.75	38.08

Shareholder Returns

The company positions the return of profits to shareholders as one of its most important management issues, and its basic policy is to pay dividends on a stable basis while taking into account the strengthening of its corporate structure and the accumulation of internal reserves in preparation for future business development. The dividend forecast for the fiscal year ending June 2026 is 20 yen per share, the same level paid in each of the fiscal years ended June 2022 through June 2025. The presentation describes this as a commitment to stable dividends.

Fiscal year	Dividend per share (yen)
FY ended June 2022	20
FY ended June 2023	20
FY ended June 2024	20
FY ended June 2025	20
FY ending June 2026 (forecast)	20

Company and Group Overview

ONEX CORPORATION runs its business on two pillars, metal heat treatment processing and transportation. The metal heat treatment business is operated by ONEX CORPORATION and ONEX Tech Center (OTC) and covers carburizing and quenching, gas soft nitriding, induction hardening, vacuum carburizing and other treatments; the transportation business is operated by ONEX Line and comprises general freight transportation and other services. Group locations shown in the presentation include the head office, the Higashimatsuyama Plant, the Atsugi Plant, the Yamaguchi Plant, ONEX Tech Center, ONEX Line, and sales offices in Atsugi, Saitama and Mie.

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.