Sumida Corporation (6817): FY2025 Results Summary — Operating Profit Jumps 64.8% on Cost Structure Reform; New Mid-Term Plan Targets ¥165.0 Billion Revenue

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Sumida Corporation (6817), a global manufacturer of coil products that are essential components in a wide range of electronic devices, reported increased revenue and profit for FY2025 (the fiscal year ended December 31, 2025). Full-year revenue was 147.1 billion yen (YoY +2.2%) and operating profit was 7.4 billion yen (YoY +64.8%). The company states that revenue increased slightly year on year, while profit increased significantly, partly reflecting the radical improvement in its cost structure at the end of the previous year. The acquisition of Schmidbauer, which became a subsidiary in Q4 of FY2025, contributed a 1.2 billion yen increase in revenue and a 0.1 billion yen increase in operating profit. Alongside the results, Sumida announced its Vision to 2035 and the new Mid-term Business Plan 2026-2028.

Consolidated Results (Full Year)

Full-year revenue reached 147,194 million yen (YoY +2.2%) and operating profit reached 7,439 million yen (YoY +64.8%), against the company’s FY2025 forecast of 144,000 million yen and 7,000 million yen disclosed on February 7. Profit before income taxes was 4,830 million yen (YoY +272.9%) and net profit (profit attributable to owners of parent) was 3,618 million yen (YoY +512.4%), with EPS of 109.47 yen. In the fourth quarter, revenue was 39,117 million yen (YoY +13.6%) and operating profit was 1,950 million yen (YoY +378.8%). The full-year operating profit bridge analysis versus FY2024 cites the absence of FY2024 restructuring costs (1,086 million yen), a decrease in fixed costs due to higher production volume (2,281 million yen), efficiency gains (992 million yen), a one-off compensation item (1,007 million yen), and a decrease in manufacturing overheads (1,008 million yen) as major positive factors, against a negative revenue impact of -3,793 million yen. EU restructuring contributed an effect of 1,721 million yen.

Item	FY25 Actual	FY24 Actual	YoY
Revenue (M.JPY)	147,194	143,978	+2.2%
Operating Profit (M.JPY)	7,439	4,513	+64.8%
Profit before income taxes (M.JPY)	4,830	1,295	+272.9%
Net profit (M.JPY)	3,618	590	+512.4%
Earnings per share (EPS) (JPY)	109.47	17.96	+509.5%
OP margin	5.1%	3.1%	+1.9pt
Net profit margin	2.5%	0.4%	+2.1pt

Q4 Revenue by Region and Market

In the fourth quarter (figures in billion yen, management accounting values; revenue by location of group sales companies), revenue grew in all three regions: Asia 15.4 (YoY +2.2%), North America 8.4 (YoY +18.7%), and Europe 15.2 (YoY +24.7%). By market, Automotive revenue was 21.5 (YoY +8.2%), Industrial 11.1 (YoY +17.7%), and Consumer Electronics (CE) 6.4 (YoY +27.0%). In Europe, industrial-market revenue increased significantly to 4.8 billion yen (YoY +54.1%), partly reflecting Schmidbauer becoming a part of the Group and the growth in demand for xEV quick chargers. Green energy-related revenue decreased slightly to 10.0 billion yen (YoY -2.0%), and the Green Energy-related Revenue Ratio declined to 25.8% (YoY -4.1pt).

FY25.4Q (billion yen)	Revenue	YoY
Asia	15.4	+2.2%
North America	8.4	+18.7%
Europe	15.2	+24.7%
Automotive	21.5	+8.2%
Industrial	11.1	+17.7%
CE	6.4	+27.0%
Total	39.1	+13.6%

FY2026 Forecast

For FY2026, Sumida forecasts revenue of 156,000 million yen (YoY +6.0%), operating profit of 7,500 million yen (YoY +0.8%), profit before income taxes of 4,850 million yen (YoY +0.4%), and net profit of 3,650 million yen (YoY +0.9%), with EPS of 110.40 yen. The company states that the business environment is expected to remain challenging, and that it will steadily implement the initiatives set forth in the Mid-term Business Plan 2026-2028 and strive to enhance profitability and improve capital efficiency. By market, revenue is forecast at 91,300 million yen for Automotive (YoY +6.9%), 42,300 million yen for Industrial (YoY +7.6%), and 22,400 million yen for CE (YoY -0.3%), with a recovery expected in both the industrial and automotive markets. Assumed exchange rates are 150.00 yen per USD and 180.00 yen per EUR, with an assumed copper price of 13,000 USD/ton (YoY +30.8%). The operating profit bridge for FY2026 includes positives such as the full-year contribution from EU restructuring and additional short-time work in the EU (+1.0 billion yen), material cost reduction (+1.0 billion yen), and the Schmidbauer acquisition (+0.7 billion yen), offset by a copper price impact of -1.7 billion yen, salary and wage impact of -1.3 billion yen, and the absence of the FY2025 one-off compensation from customers (-1.0 billion yen).

Item	FY26 Forecast	FY25 Actual	YoY
Revenue (M.JPY)	156,000	147,194	+6.0%
Operating Profit (M.JPY)	7,500	7,439	+0.8%
Profit before income taxes (M.JPY)	4,850	4,830	+0.4%
Net profit (M.JPY)	3,650	3,618	+0.9%
Earnings per share (EPS) (JPY)	110.40	109.47	+0.9%
OP margin	4.8%	5.1%	-0.3pt

Shareholder Returns

The annual dividend for FY2025 is 53.0 yen per share (first-half 26 yen, second-half 27 yen), unchanged from FY2024, with a dividend payout ratio of 48.4% and DOE of 2.9%. Total dividends paid were 1,752 million yen. The dividend for the FY2025 year-end is scheduled to be submitted for approval to the Board of Directors at a meeting planned on February 20, 2026. For FY2026, the company estimates an annual dividend of 53.0 yen (first-half 26 yen, second-half 27 yen), with an estimated payout ratio of 48.0%. The company’s basic policy for the return of profits to shareholders is to deliver dividends in consideration of a consolidated dividend payout ratio (30% or more) with top priority on profit distribution through dividends; when that is inappropriate based on actual consolidated business results, the company will work to enhance shareholder returns up to the amount of distributable surplus after considering Dividend on Equity (DOE) of 3% and other measures.

Item	FY25	FY26 (Estimate)
Total dividend (JPY/Share)	53.0	(53.0)
EPS (JPY)	109.47	(110.40)
Dividend payout ratio	48.4%	(48.0%)
Total Dividends Paid (M.JPY)	1,752	(1,752)
DOE	2.9%	(2.8%)

Vision to 2035 and Mid-Term Business Plan 2026-2028

Reviewing the Mid-term Business Plan 2024-2026, the company notes that the environment began to change rapidly in early 2024, mainly due to the end of EV subsidies in Europe and changes in U.S. environmental policy, and that FY2026 forecast revenue of 156.0 billion yen and operating profit of 7.5 billion yen compare with the original FY2026 targets of 190.0 billion yen and 13.5 billion yen. Under its Vision to 2035, “Top Position in Multiple Niches,” Sumida is promoting a Niche-Top Strategy built on three pillars: higher capital efficiency, megatrend-centric growth, and new business. The new Mid-term Business Plan 2026-2028 (MTBP2028) targets FY2028 revenue of 165.0 billion yen (from 147.1 billion yen in FY2025), operating profit of 10.0 billion yen (from 7.4 billion yen), EPS of 174.00 yen (from 109.47 yen), and ROIC of 6.7% (from 5.4%). By market, FY2028 revenue targets are 95.0 billion yen for Automotive (CAGR +3.6%), 48.0 billion yen for Industrial (CAGR +6.9%), and 22.0 billion yen for CE (CAGR -0.6%), with green energy-related revenue targeted at 50.0 billion yen (CAGR +8.3%). Capital allocation over the plan assumes operating cash flow of 49.0 billion yen, allocated to growth investment of 20.0 billion yen + α, maintenance investment of 13.0 billion yen, shareholder returns of 6.0 billion yen, and strengthening the financial position of 10.0 billion yen – α, targeting a Net D/E ratio of 0.6x. New business initiatives include applying Vector Potential Coil technology in medical care and a quantum magnetic sensor developed with Kyoto University.

MTBP2028 Target	FY2025	FY2028
Revenue (B.JPY)	147.1	165.0
Operating Profit (B.JPY)	7.4	10.0
EPS (JPY)	109.47	174.00
ROIC	5.4%	6.7%

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.