SANYO DENKI (6516): FY2025 Results Summary — Operating Profit Up 37.2% on AI-Related Demand and FA Recovery

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

SANYO DENKI CO., LTD. (Securities code: 6516) held its FY2025 financial results briefing (fiscal year ended March 31, 2026) on May 21, 2026. Revenue rose 9.7% year on year to ¥107.3B, driven by a recovery in FA market demand, including robots and semiconductor manufacturing equipment, as well as continued strength in AI-related demand. Operating profit increased 37.2% to ¥10.8B, with the operating margin improving from 8.1% to 10.1%, and net income climbed 53.6% to ¥8.6B. For FY2026, the company forecasts revenue of ¥128.8B (+20.0%) and operating profit of ¥16.2B (+49.6%).

Consolidated Results (Full-Year Actual)

Revenue increased across all segments: San Ace +7.3%, Electronics +9.9%, and Motion +13.9%. Gross profit rose to ¥29.9B (gross margin 27.9%, up from 25.7%), absorbing a raw material cost increase of -¥4.8B. Profit before tax grew 46.8% to ¥11.7B, helped by finance income/costs of ¥0.8B (versus ¥0.0B in FY2024). Orders received rose 30.1% year on year and the order backlog was up 25.0%, with the Motion Company showing a strong recovery (orders received +39.0%, orders backlog +57.5%).

Item	FY 2025 Results	FY 2024 Results	YoY Change
Revenue	¥107.3B	¥97.8B	+¥9.5B (+9.7%)
Operating profit (margin)	¥10.8B (10.1%)	¥7.9B (8.1%)	+¥2.9B (+37.2%)
Profit before tax	¥11.7B (10.9%)	¥8.0B (8.2%)	+¥3.7B (+46.8%)
Net income	¥8.6B (8.1%)	¥5.6B (5.8%)	+¥3.0B (+53.6%)

Note: Net income is profit attributable to owners of the parent. Figures in parentheses are the ratio to revenue.

Segment Results (Revenue by Business Company)

The San Ace Company (cooling fans) saw robust demand from telecom and AI server markets, with a continuing recovery in control equipment and general machine tool markets. The Electronics Company recorded stable SANUPS demand from servers, telecom, social infrastructure, and defense-related applications, while SANMOTION saw strong demand from China for machine tools and significant growth in semiconductor. The Motion Company benefited from strong demand from China for machine tools and mounters, and significant growth in semiconductor manufacturing equipment and wafer handling robot applications; it recorded a 320.4% YoY increase in operating profit.

Business Company	Revenue	YoY	Net Orders	YoY
San Ace Company	¥40.8B	+7.3%	¥41.8B	+29.6%
Electronics Company	¥23.2B	+9.9%	¥25.2B	+28.2%
Motion Company	¥37.5B	+13.9%	¥44.2B	+39.0%
Others	¥5.7B	+1.1%	¥5.0B	-10.5%

FY 2026 Forecast

The company forecasts significant revenue and profit growth in FY2026, driven by a semiconductor market recovery and continued AI-related demand, while monitoring risks from Middle East tensions and China’s rare earth export restriction. ROE is expected to rise from 7.2% to 9.4%.

Item	FY 2026 Full-Year Forecast	FY 2025 Results	YoY Change
Revenue	¥128.8B	¥107.3B	+¥21.5B (+20.0%)
Operating profit (ratio to revenue)	¥16.2B (12.6%)	¥10.8B (10.1%)	+¥5.4B (+49.6%)
Profit before tax	¥16.6B (13.0%)	¥11.7B (10.9%)	+¥4.9B (+42.1%)
Net income	¥12.0B (9.3%)	¥8.6B (8.1%)	+¥3.4B (+38.6%)
ROE	9.4%	7.2%	–

Shareholder Returns

For FY2026, the company plans enhanced shareholder returns with an annual dividend of ¥170 per share and a payout ratio of 50.3%. The FY2024 annual dividend was ¥165; FY2025 annual dividends are not shown in the materials because they are not directly comparable due to the stock split. Under the 10th Medium-Term Management Plan, the target dividend payout ratio is raised to 50.0% (plus flexible share buybacks), up from a 24.7% dividend payout ratio (plus flexible share buybacks) during the 9th Medium-Term Management Plan. Shareholder returns will primarily be provided through dividends, with cumulative dividends of JPY 30.0 billion+ planned over the five years FY2026–FY2030 and progressive dividends to continue.

10th Medium-Term Management Plan

The 10th Medium-Term Management Plan, themed “Turn the Time into Power,” covers April 2026 to March 2031, with 887 Group-wide initiatives underway. The company sets key performance targets of 10%+ ROE and approximately 7–9% cost of equity; average ROE during the 9th Medium-Term Management Plan was 9.5%, consistently exceeding the cost of equity. PBR improved from 0.8x to 1.2x (end of the final fiscal year) and reached 1.9x as of April 2026. Capital allocation for FY2026–FY2030 plans operating cash flow of JPY 66.0B+, growth investment of JPY 33.0B+, and shareholder returns of JPY 30.0B+.

As part of its production strategy, the company established SANYO DENKI VIETNAM CO., LTD. as a new production site in Hung Yen Province, Vietnam, following Japan and the Philippines, with operations scheduled to begin in July 2027. Planned production capacity is approximately 500K cooling fans per month, 50K stepping motors per month, and 5K servo motors per month.

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.