Nippon Ceramic (6929): FY2025 Results Summary — Record Sales and Operating Income on Automotive Safety Demand

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

Nippon Ceramic Co., Ltd. (securities code 6929), a maker of infrared, ultrasonic and current sensors under the Nicera brand, reported record-high sales and operating profits for the full fiscal year ended December 31, 2025 (FY2025; the company’s fiscal year ends in December). Consolidated sales rose 9.1% year on year to ¥27,325 million and operating income increased 25.5% to ¥6,228 million. Sales of automotive safety-related applications increased due to demand for ADAS and a recovery in automobile production volume, and sales for security, home appliances, and lighting applications also expanded. Alongside the results, the company announced a medium-term management plan targeting sales of 30 billion yen, operating profit of 7.15 billion yen, and ROE of 12% or more in the fiscal year ending December 2028.

Consolidated Results (Full-Year Actual)

For FY2025, sales reached ¥27,325 million (up 9.1% year on year), gross income was ¥8,571 million (31.4% of sales, up 19.2%), operating income was ¥6,228 million (22.8% of sales, up 25.5%), ordinary income was ¥7,047 million (up 20.6%), and net income attributable to owners of parent was ¥7,004 million (up 68.3%). According to the company’s operating income bridge, the ¥1,266 million earnings growth from FY2024’s ¥4,961 million to FY2025’s ¥6,228 million consisted of a positive contribution of ¥2,265 million from sales, partly offset by sales affected by the forex of (65), cost of sales of (818), and others of (115) (¥ million). The average exchange rate was 149.53 yen per U.S. dollar, a 1.24 yen appreciation versus 150.77 yen in FY2024. The company notes that profitability improved due to increased sales and reduced costs, and that ROE also improved due to increased shareholder returns.

Item (¥mn)	FY2024	FY2025	Y/Y %
Sales	25,037	27,325	9.1%
Gross income	7,189	8,571	19.2%
Operating income	4,961	6,228	25.5%
Ordinary income	5,844	7,047	20.6%
Net income attributable to owners of parent	4,162	7,004	68.3%

On a quarterly basis, sales in the fourth quarter of FY2025 (25/4Q) were ¥6,539 million with operating income of ¥1,430 million and an operating income margin of 21.9%. Cash flows from operating activities in FY2025 were ¥4,888 million, cash flows from investment activities were (4,250), and free cash flow was ¥2,876 million (¥ million), with cash and cash equivalents at end of period of ¥20,099 million. On the balance sheet, total assets stood at ¥56,359 million and total net assets at ¥50,037 million at the end of FY2025.

Sales by Region

By region, sales in Japan rose 10.4% year on year to ¥15,358 million, accounting for 56.2% of total sales. Far East Asia sales rose 8.0% to ¥9,921 million (36.3% of sales), Europe rose 3.4% to ¥1,783 million (6.5%), and North and South America rose 23.7% to ¥262 million (1.0%). The company states that domestic sales increased for automotive safety, home appliances, and lighting applications, while Far East Asia saw increased sales for automotive safety, eco-friendly vehicles, and security applications.

Region (¥mn)	FY2024	FY2025	Y/Y	Sales Ratio
Japan	13,913	15,358	10.4%	56.2%
Far East Asia	9,186	9,921	8.0%	36.3%
Europe	1,724	1,783	3.4%	6.5%
North and South America	212	262	23.7%	1.0%
Total	25,037	27,325	9.1%	100%

FY2026 Forecast

For FY2026 (the fiscal year ending December 2026), the company forecasts net sales of ¥28,000 million (up 2.5% year on year), operating income of ¥6,500 million (up 4.4%), ordinary income of ¥6,700 million (down 4.9%), and net income attributable to owners of parent of ¥4,700 million (down 32.9%). The forex assumption is 150.00 yen per U.S. dollar. Capex is forecast at ¥1,500 million for FY2026, of which ¥600 million is investment related to the construction of a new factory in the Philippines; FY2025 capex was ¥2,080 million, of which ¥1,372 million related to the new Philippines factory. Depreciation is forecast at ¥1,400 million and R&D expenses at ¥1,000 million for FY2026.

Item (¥mn)	FY2025 (Actual)	FY2026 (FCT)	Change %
Net Sales	27,325	28,000	2.5%
Operating Income	6,228	6,500	4.4%
Ordinary Income	7,047	6,700	(4.9)%
Net income attributable to owners of parent	7,004	4,700	(32.9)%

Shareholder Returns

The company states that it has a basic policy to pay a dividend once a year as a year-end dividend. The FY2025 (’25) annual dividend was 165 yen, consisting of a common dividend of 125 yen and a special dividend of 40 yen, with a dividend payout ratio of 51% and a total return ratio of 87%. For FY2026 (’26), the company forecasts a dividend of 165 yen.

Item	’24	’25	’26 (FCT)
Annual dividend (yen)	125	165	165
Of which special dividend (yen)	25	40	–
Dividend payout ratio	69%	51%	–
Total return ratio	161%	87%	–

Medium-Term Plan

The company announced a medium-term management plan, aiming to achieve sales of 30 billion yen, operating profit of 7.15 billion yen, and ROE of 12% or more in the fiscal year ending December 2028.

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.