YAMASHIN-FILTER (6240): FY2025 Results Summary — Record Net Sales and Net Profit on Construction Machinery Filter Demand

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

YAMASHIN-FILTER CORP. reported FY2025 (April 2025 to March 2026) consolidated net sales of 20,941 million yen, up 4.2% year on year, with operating profit of 2,592 million yen, down 1.4%. The company states that although results for FY2025 fell short of the plan, it achieved record highs in net sales and net profit since its founding. Growth in the construction machinery filter business was offset by upfront investments associated with the launch of new businesses and weak performance of the air filter business. For FY2026, the company forecasts record highs in net sales, operating profit, ordinary profit, and net profit.

Consolidated Results (Full-Year Actual)

Net sales rose 836 million yen (4.2%) to 20,941 million yen. The Construction Machinery Filter segment (which includes construction machinery filters, industrial filters, and process filters) grew 6.7% to 18,654 million yen, while the Air Filter segment declined 12.5% to 2,286 million yen. Operating profit fell 37 million yen (1.4%) to 2,592 million yen, with the operating profit margin down 0.7Pt to 12.4%. Ordinary profit decreased 5.0% to 2,535 million yen and net profit was essentially flat at 1,718 million yen. The materials note that the business environment remained favorable due to increased demand for AI data centers and active infrastructure investment in the North American market.

Item (Million yen)	FY2024 Results	FY2025 Results	YoY Change (Amount)	YoY Change (Percent)
Net sales	20,104	20,941	836	4.2%
Construction Machinery Filter*	17,489	18,654	1,164	6.7%
Air Filter	2,615	2,286	(328)	(12.5%)
Operating profit (segment profit)	2,630	2,592	(37)	(1.4%)
Construction Machinery Filter*	2,554	2,713	158	6.2%
Air Filter	75	(120)	(196)	–
Operating profit margin	13.1%	12.4%	(0.7Pt)	—
Ordinary profit	2,669	2,535	(134)	(5.0%)
Ordinary profit margin	13.3%	12.1%	(1.2Pt)	—
Net profit	1,723	1,718	(4)	(0.3%)
Net profit margin	8.6%	8.2%	(0.4Pt)	—
Exchange rate USD (yen, average)	152.6	150.8	(1.8)	(1.2%)
Exchange rate EUR (yen, average)	163.8	174.8	11.1	6.7%

* “Construction Machinery Filter” includes construction machinery filters, industrial filters, and process filters.

Segment Results

By product, net sales of line parts increased 23.2% to 6,898 million yen on strong demand for new vehicles, while service parts came to 10,311 million yen, down 1.6% on a reactionary decline from the previous year. Industrial filters rose 9.1% to 772 million yen and process filters declined 4.1% to 670 million yen. In the air filter business, the company notes that although disruptions caused by the replacement of the core system have subsided, recovery in sales is still expected to take time.

Net sales by product (Million yen)	FY2024 Results	FY2025 Results	YoY Change (Amount)	YoY Change (Percent)
Construction Machinery Filter	16,080	17,210	1,129	7.0%
Line parts	5,599	6,898	1,299	23.2%
Service parts	10,481	10,311	(169)	(1.6%)
Industrial filters	708	772	64	9.1%
Process filters	699	670	(28)	(4.1%)
Subtotal for construction machinery filters	17,489	18,654	1,164	6.7%
Air Filter	2,615	2,286	(328)	(12.5%)
Total net sales	20,104	20,941	836	4.2%

By region, sales in North & South America increased 9.1% to 5,014 million yen and China rose 33.7% to 1,667 million yen, while Europe declined 6.6% to 1,937 million yen. Japan edged up 1.8% to 7,027 million yen. Regional figures are aggregated based on invoice destination, and South America, previously categorized under “Other,” has been combined with North America under the new category “North & South America.”

Net sales by region (Million yen)	FY2024 Results	FY2024 Composition Ratio	FY2025 Results	FY2025 Composition Ratio	YoY Change (Amount)	YoY Change (Percent)
Construction Machinery Filter*	17,489	87.0%	18,654	89.1%	1,164	6.7%
Japan	6,900	34.3%	7,027	33.6%	126	1.8%
North & South America	4,597	22.9%	5,014	23.9%	416	9.1%
China	1,246	6.2%	1,667	8.0%	420	33.7%
Asia	2,670	13.3%	2,906	13.9%	236	8.8%
Europe	2,073	10.3%	1,937	9.3%	(136)	(6.6%)
Other (Middle East, etc.)	–	–	100	0.5%	100	–
Air Filter (Japan)	2,615	13.0%	2,286	10.9%	(328)	(12.5%)
Total net sales	20,104	100.0%	20,941	100.0%	836	4.2%

FY2026 Forecast

For FY2026 (April 2026 to March 2027), the company forecasts net sales of 22,560 million yen, up 1,618 million yen (7.7%), and operating profit of 2,825 million yen, up 232 million yen (9.0%), with ordinary profit of 2,775 million yen and net profit of 2,005 million yen. From FY2026, a new business will be separately disclosed as the functional material segment, with net sales of 30 million yen and an operating loss of 370 million yen assumed. Assumed exchange rates are 155.0 yen to the US dollar and 180.0 yen to the euro. The materials state that the impact of the Middle East situation on the Group’s business performance is currently minimal and has not been factored into the FY2026 forecast, and that the impact of U.S. tariffs on business performance is also extremely limited.

Item (Million yen)	FY2024 Results	FY2025 Results	FY2026 Initial Forecast	YoY Change (Amount)
Net sales	20,104	20,941	22,560	1,618
Construction Machinery Filter*	17,489	18,654	20,200	1,545
Air Filter	2,615	2,286	2,330	43
Functional Materials	–	–	30	30
Operating profit (segment profit)	2,630	2,592	2,825	232
Construction Machinery Filter*	2,554	2,713	3,190	476
Air Filter	75	(120)	5	125
Functional Materials	–	–	(370)	(370)
Operating profit margin	13.1%	12.4%	12.5%	0.1Pt
Ordinary profit	2,669	2,535	2,775	239
Ordinary profit margin	13.3%	12.1%	12.3%	0.2Pt
Net profit	1,723	1,718	2,005	286
Net profit margin	8.6%	8.2%	8.9%	0.7Pt
Exchange rate USD (yen, average)	152.6	150.8	155.0	–
Exchange rate EUR (yen, average)	163.8	174.8	180.0	–

Shareholder Returns

The annual dividend per share for FY2025 was 18.0 yen, against a Mid-Term Plan target of 16.0 yen and 12.0 yen in FY2024. The consolidated dividend payout ratio was 73.1%, DOE 5.5% and the total payout ratio 150.1%. For FY2026 the company forecasts an annual dividend of 20.0 yen, a consolidated dividend payout ratio of 69.7%, DOE of 6.1% and a total payout ratio of 97.5%. The materials state that for FY2026 the dividend policy will be revised and the establishment of new businesses will be accelerated by prioritizing capital allocation toward growth investments, and that as a result DOE will temporarily fall below the Mid-Term Plan target level.

Item	FY2024 Results	FY2025 Mid-Term Plan	FY2025 Results	FY2026 Mid-Term Plan	FY2026 Initial Forecast
Annual dividend per share	12.0 Yen	16.0 Yen	18.0 Yen	24.0 Yen	20.0 Yen
Consolidated dividend payout ratio	49.3%	58.1%	73.1%	72.2%	69.7%
Dividend yield	2.1%	1.5%	3.8%	1.6%	2.3%
DOE	3.9%	5.2%	5.5%	7.4%	6.1%
Total payout ratio	52.9%	113.5%	150.1%	119.3%	97.5%

Medium-Term Plan / Topics

The company manages performance using its proprietary indicator MAVY’s, defined as ROIC minus WACC. For FY2025, MAVY’s was (0.7%) against a Mid-Term Plan target of 0.2%, with ROIC of 7.2% (target 8.1%), WACC of 7.9% and ROE of 7.6% (target 8.6%). The company explains that the Medium-Term Management Plan steadily progressed in the construction machinery filter business, while MAVY’s turned negative due to sluggish performance in the air filter business and the burden of upfront investments in new businesses. For FY2026, it targets MAVY’s of 0.4%, ROIC of 8.0% and ROE of 8.8%. The shareholders’ equity ratio was 81.3% at the end of FY2025 and is forecast at 74.7% for FY2026.

In the construction machinery filter business, the confirmed order backlog in Q4 FY2025 reached a record high, which the company attributes to expanded market share in the North American market and a rebound after inventory adjustments in the Southeast Asian market. Under the YAMASHIN FILTER VISION 2030 equity story, the company launched a functional materials business and selected three market areas: Functional Textiles, Life Sciences and Industrial Materials. In the functional textiles area, TEXIFIL has been adopted by three Japan-based apparel brands. On non-financial KPIs, the company achieved a CDP Climate Change A Score for the second consecutive year and an FTSE score of 3.8 in FY2025, against FY2027 targets of an FTSE score of 4.0 or higher and a CDP Climate Change A Score.

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.