Osaki Electric (6644): FY2025 Results Summary — Net Sales Reach 100 Billion Yen for the First Time Since Listing

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OSAKI ELECTRIC CO., LTD. (TSE Prime, Code: 6644) announced its FY2025 financial results on May 12, 2026. Net sales rose 3.9% year on year to 100,900 million yen, with operating profit up 14.5% to 6,526 million yen and profit attributable to owners of parent up 64.9% to 5,777 million yen. The company states that net sales reached 100 billion yen for the first time since listing, that it exceeded all targets (sales, operating profit, profit attributable to owners of parent, and ROE) in the second year of the Mid-Term Management Plan, and that it achieved the FY2026 Mid-Term Management Plan net sales target one year ahead of schedule.

Consolidated Results (Full-Year Actual)

Against the Mid-Term Management Plan (FY2025) targets of sales of 98.0 billion yen, operating profit of 5.8 billion yen, net profit of 3.6 billion yen, and ROE of 7.0%, actual results were sales of 100.9 billion yen, operating profit of 6.5 billion yen (6.5% margin), net profit of 5.8 billion yen, and ROE of 10.6%. In Japan, revenue increased due to sales of the second-generation smart meters progressing as planned and other factors. Overseas, revenue increased mainly on higher shipments associated with the UK government-led “Smart Meter Project” and additional one-off orders in the Middle East & Africa, although overall overseas sales declined mainly due to reduced sales in Oceania caused by customer inventory adjustments.

Item (Million Yen)	FY2024 Actual	FY2025 Actual	YoY Change
Net sales	97,102	100,900	3,797 (+3.9%)
Operating profit (Rate)	5,701 (5.9%)	6,526 (6.5%)	825 (+14.5%)
Ordinary profit (Rate)	5,386 (5.5%)	6,567 (6.5%)	1,180 (+21.9%)
Extraordinary gains and losses	1,003	4,222	3,219 (+321.0%)
Profit attributable to owners of parent (Rate)	3,504 (3.6%)	5,777 (5.7%)	2,273 (+64.9%)

Extraordinary gains of 6.8 billion yen were recorded, including a gain on sale of fixed assets of 6.15 billion yen associated with the transfer of real estate held by a consolidated subsidiary (executed in March 2026) and a gain on sale of 0.69 billion yen from reducing strategic shareholdings. Extraordinary losses of 2.6 billion yen were recorded, including a loss on withdrawal from business (impairment loss) of 2.06 billion yen following the decision to withdraw from the Middle East & Africa region effective at the end of FY2025 (Board decision on January 27, 2026) and business restructuring expenses of 0.55 billion yen related to workforce optimization at EDMI, the subsidiary responsible for overseas operations (personnel reduction of 16% as of the end of December 2025, compared to December 2023).

Segment Results

Smart meters & solutions in Japan grew 6.5% to 59,732 million yen, with operating profit up 17.9% to 4,676 million yen, driven by higher revenue in the smart meter business, improved profitability, and improved profit margins in the switchgear business, despite increased depreciation expenses arising from the start of second-generation smart meter production. Smart meters & solutions overseas declined 0.4% to 41,566 million yen in sales, while operating profit rose 17.9% to 1,743 million yen due to temporary sales contribution in the Middle East & Africa and reduced SG&A expenses through organization-wide structural transformation.

Segment (Million Yen)	Metric	FY2024 Actual	FY2025 Actual	YoY Change
Smart meters & solutions in Japan	Net sales	56,084	59,732	3,647 (+6.5%)
Smart meters & solutions overseas	Net sales	41,719	41,566	△153 (△0.4%)
Real estate	Net sales	561	435	△125 (△22.4%)
Smart meters & solutions in Japan	Operating profit	3,965	4,676	710 (+17.9%)
Smart meters & solutions overseas	Operating profit	1,477	1,743	265 (+17.9%)
Real estate	Operating profit	270	103	△166 (△61.5%)

Within Japan (figures after consolidation adjustments), the smart meter business rose 15.4% to 40,274 million yen on demand for first-generation smart meters and second-generation smart meter sales progressing as planned, while the solution business fell 12.0% to 11,379 million yen and the switchgear business fell 2.2% to 8,053 million yen. By overseas region (figures after consolidation adjustments), Oceania declined 24.9% to 15,880 million yen on continued inventory adjustments by customers in Australia, Europe rose 14.1% to 15,342 million yen on the UK government-led “Smart Meter Project,” Asia rose 3.3% to 4,846 million yen, and the Middle East & Africa rose 271.0% to 4,793 million yen on one-off additional orders. The average FX rate was 149.61 JPY/USD versus 151.69 in FY2024.

FY2026 Forecast

For FY2026, the company forecasts net sales of 101,000 million yen and operating profit of 8,100 million yen, a record-high profit, although operating profit is projected to fall short of the Mid-Term Management Plan final-year target of 9.0 billion yen due to rising raw material and component prices and increased SG&A expenses associated with the advancement of the growth strategy. The forecast assumes an exchange rate of 155.00 JPY/USD. The “Middle East & Africa” segment has been discontinued following the withdrawal from the business. The company also plans to accelerate evaluation of entry into the U.S. market, commencing field tests with multiple electric utilities in 2026 and aiming for revenue contribution from FY2028 onward.

Item	FY2026 Forecast	FY2025 Actual
Net sales (Million Yen)	101,000	100,900
Operating profit (Million Yen)	8,100	6,526
Profit attributable to owners of parent (Million Yen)	4,800	5,777
ROE	8.5%	10.6%
Assumed exchange rate (JPY/USD)	155.00	*149.61 (average FX rate)

By segment, smart meters & solutions in Japan is forecast at 65,000 million yen in net sales (+8.9% vs FY2025 actual) with strong order intake for second-generation smart meters, while smart meters & solutions overseas is forecast at 35,700 million yen (△12.6%), reflecting the peak-out of the UK project and the exit from the Middle East & Africa. Oceania is forecast at 17,000 million yen (+7.1%), Europe at 13,700 million yen (△10.7%), and Asia at 5,000 million yen (+3.2%) on the acquisition of large-scale orders from existing customers.

Shareholder Returns

The FY2025 annual dividend is 49 yen per share (ordinary dividend of 39 yen plus a special dividend of 10 yen), an increase of 4 yen from the revised forecast of 45 yen announced in February 2026 through the application of the payout ratio standard, and a 27 yen increase from FY2024. For FY2026, the company forecasts an annual dividend of 49 yen per share (ordinary 39 yen plus special 10 yen), maintaining the FY2025 dividend level. The dividend policy has been revised to determine dividends based on the higher of DOE 3% or a payout ratio of 30%. A share repurchase of up to 1.5 million shares and up to 2.5 billion yen is being executed from February 2026 to September 2026, following a repurchase of approximately 2.46 million shares for approximately 2.0 billion yen from August 2024 to August 2025. The total return ratio is 77.3% (planned) for FY2025 and 90.9% (forecast) for FY2026.

Dividend per share (Yen)	End of Second Quarter	Fiscal Year-End	Annual
FY2025 Ordinary dividend	17	22	39
FY2025 Special dividend	–	10	10
FY2025 Total	17	32	49
FY2026 Ordinary dividend (forecast)	19	20	39
FY2026 Special dividend (forecast)	10	―	10
FY2026 Total (forecast)	29	20	49

Medium-Term Growth Strategy / Topics

Under its Medium-Term Growth Strategy (2026-2030), the company aims to become a “Global Energy Solution Leader,” targeting operations across five global regions (Japan, Oceania, U.S., UK, and Asia). In Japan, it plans to establish a stable revenue base through the reliable supply of second-generation smart meters, explore the storage batteries utilization business, and develop new VCT models. Overseas, it plans to build a stable revenue base through the next-generation smart meter “NEOS,” expand “NEOS Solutions,” and evaluate entry into and commercialization of the U.S. market, targeting mid-sized electric utilities (approximately 3,000 companies) in a market approximately 10 times the size of Australia. As of the end of FY2025, PBR was 1.31 times and ROE was 10.6%, against a cost of equity capital of 6.0%. In its review of cash allocation for FY2024-FY2026, cash inflows of 36.7 billion yen are allocated to growth investments (12.1 billion yen), foundation investments (6.5 billion yen), shareholder returns of dividends (7.6 billion yen) and share repurchase (4.5 billion yen), with 8.8 billion yen for utilization in the next Mid-Term Management Plan.

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