TAIYO YUDEN (6976): FY2025 Results Summary — Operating Profit Up 91% on AI Server and Automotive Demand

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

TAIYO YUDEN CO., LTD. reported net sales of 355.3 billion yen (up 4% YoY) and operating profit of 20.0 billion yen (up 91% YoY) for the fiscal year ended March 31, 2026. Capacitor revenue rose on increased demand for AI servers and automobiles, while inductor sales also grew for use in memory modules and other applications. Higher sales volumes improved capacity utilization, and price declines for the same products continued but at a slower pace than in the prior fiscal year and the initial outlook. For the fiscal year ending March 31, 2027, the company plans net sales of 384.0 billion yen (up 8% YoY) and operating profit of 30.0 billion yen (up 50% YoY). Note: the company labels this completed year “FYE Mar 31, 2026”; our site classifies it as FY2025, and all labels in the text and tables below follow the company’s own presentation.

Consolidated Results (Full-Year Actual)

Net sales rose 4.1% YoY to ¥355,341 million and operating profit rose 91.2% to ¥19,996 million, lifting the operating margin to 5.6% from 3.1%. Ordinary profit increased 129.4% to ¥24,129 million and profit attributable to owners of parent increased 535.9% to ¥14,806 million. According to the materials, the impact of currency fluctuations was decreases of ¥4.1 billion in net sales and ¥4.0 billion in operating profit, with cost increases due to appreciation of Asian currencies having a significant impact on operating profit.

(¥ in million)	FYE Mar 31, 2025 Full Year	FYE Mar 31, 2026 Full Year	Change	Change (%)
Net sales	341,438	355,341	13,903	4.1
Operating profit	10,459	19,996	9,536	91.2
Operating margin	3.1%	5.6%	2.5%pt	–
Ordinary profit	10,517	24,129	13,612	129.4
Profit attributable to owners of parent	2,328	14,806	12,477	535.9
Yen/USD average exchange rate	152.61 yen	149.99 yen	(2.62) yen	–
R&D expenses	15,042	14,474	(567)	(3.8)
Capital investment	64,158	40,416	(23,741)	(37.0)
Depreciation expenses	46,258	49,148	2,889	6.2

Results by Product Classification

The materials state that net sales of capacitors were up 9% YoY, as strong growth in demand continued for products used in AI servers alongside a steady increase in sales of products used in automobiles, and that inductor sales were higher, up 5% YoY, as sales increased for use in memory modules and game consoles. The corresponding table figures are shown below. In the integrated modules and devices classification, withdrawal and transfer of identified products was completed in the circuit module business, and net sales of communication devices declined owing to the impact of sluggish demand for use in Chinese smartphones; structural reform was implemented.

(¥ in million)	FYE Mar 31, 2025 Full Year	FYE Mar 31, 2026 Full Year	Change	Change (%)
Net sales	341,438	355,341	13,903	4.1
Capacitors	232,066	251,771	19,705	8.5
Inductors	61,546	64,319	2,772	4.5
Integrated modules & devices	22,986	14,796	(8,190)	(35.6)
Others	24,838	24,453	(384)	(1.5)

By application, the combined composition of sales for use in IT infrastructure/industrial equipment and automotive, which TAIYO YUDEN is focusing on, increased to 56%. For IT infrastructure/industrial equipment, capacitors used in servers drove sales growth, while for communication equipment, sales of inductors for use in smartphones decreased due to a seasonal decline in demand.

Orders Received and Order Backlog

Orders received for capacitors in the fourth quarter were significantly higher than in the previous quarter, up 26%, and the order backlog also increased sharply. Orders for capacitors increased across a wide range of applications, including products used in IT infrastructure/industrial equipment such as AI servers, and products used in communication equipment, primarily smartphones. The book-to-bill (BB) ratio rose significantly to 1.25 for all TAIYO YUDEN products and 1.31 for capacitors, and the materials state that strong demand continues.

Forecast for the Fiscal Year Ending March 31, 2027

The company projects that sales and profit will grow as demand growth continues for high-value-added products used in AI servers and automobiles. FX sensitivity indicates that a ¥1 fluctuation against the US dollar impacts net sales by ¥1.9 billion and operating profit by ¥0.9 billion. The materials cite continued demand growth for products used in AI servers because of the increasingly high capacity and greater number of multilayer ceramic capacitors used, and strong expected growth in demand for electronic components in automobiles because of the development of high-performance Advanced Driver Assistance Systems (ADAS) and xEVs. On costs, production-related costs are expected to increase versus the previous fiscal year driven by higher capacity, while communication device business-related costs will be reduced by the structural reforms implemented in the previous fiscal year. Risks noted include soaring resource prices due to the situation in the Middle East and rising raw material and component costs, which have been reflected in the earnings forecast, and concerns about memory supply constraints and a decrease in demand due to price increases, where the impact is expected to be limited in the high-end equipment segment that is the company’s main customer base.

(¥ in million)	FYE Mar 31, 2026 Actual	FYE Mar 31, 2027 Forecast	Change	Change (%)
Net sales	355,341	384,000	28,659	8.1
Operating profit	19,996	30,000	10,004	50.0
Operating margin	5.6%	7.8%	2.2%pt	–
Ordinary profit	24,129	27,000	2,871	11.9
Profit attributable to owners of parent	14,806	18,000	3,194	21.6
Yen/USD average exchange rate	149.99 yen	150.00 yen	0.01 yen	–
R&D expenses	14,474	15,000	526	3.6
Capital investment	40,416	40,000	(416)	(1.0)
Depreciation expenses	49,148	48,000	(1,148)	(2.3)

By product classification, capacitor sales are expected to increase by 12% YoY, primarily for products used in AI servers and automobiles, which TAIYO YUDEN is focusing on. Integrated modules & devices was combined into Others from FYE March 2027. In the Other product classification, sales of communication devices will decrease owing to the strategy of focusing on core competencies in conjunction with structural reform, with the aim of improving profitability. The company also plans an ¥8.0 billion increase in inventory, and states that for some items affected by rising raw material prices it has rolled out a pricing strategy that reflects the increases.

(¥ in million)	FYE Mar 31, 2026 Actual	FYE Mar 31, 2027 Forecast	Change	Change (%)
Net sales	355,341	384,000	28,659	8.1
Capacitors	251,771	282,000	30,229	12.0
Inductors	64,319	65,000	681	1.1
Others	39,249	37,000	(2,249)	(5.7)

For the first quarter of the fiscal year ending March 31, 2027, the company guides net sales to a change rate of ±0% to +4% against the fourth-quarter actual of ¥89,201 million, with capacitors at +3% to +7% (versus ¥63,962 million), inductors at (6)% to (2)% (versus ¥15,694 million) and Others at (12)% to (8)% (versus ¥9,544 million). The assumed yen/USD average exchange rate is 155.00 yen against 155.95 yen in the fourth quarter, and an increase of ¥1.5 billion in inventories is planned.

Shareholder Returns

TAIYO YUDEN states that it will strive for responsible shareholder returns with a basic policy of a 30% payout ratio and 3.5% DOE. The company will maintain the forecast dividend per share (DPS) of ¥90 for the fiscal year ending March 31, 2027, with the payout ratio at 62.5% and DOE at 3.8%.

Item	FYE Mar 31, 2022	FYE Mar 31, 2023	FYE Mar 31, 2024	FYE Mar 31, 2025	FYE Mar 31, 2026	FYE Mar 31, 2027 Forecast
DPS (yen)	80	90	90	90	90	90
Payout ratio (%)	18.5	8.3	34.8	482.11	76.04	62.5
DOE (%)	3.7	3.8	3.7	3.8	3.8	3.8
Amount of treasury stock (¥ in billion)	5.0	0	0	0	0	–

Fourth-Quarter Detail (Appendix)

In the fourth quarter of the fiscal year ended March 31, 2026, net sales were ¥89,201 million, up 2.9% YoY and up 0.8% QoQ, while operating profit was ¥3,477 million, up 69.0% YoY but down 53.6% QoQ, for an operating margin of 3.9%. Ordinary profit was ¥4,328 million against a loss of ¥(3,167) million a year earlier, and profit attributable to owners of parent was ¥2,179 million against ¥(5,837) million a year earlier. The yen/USD average exchange rate was 155.95 yen.

(¥ in million)	FYE Mar 31, 2025 4Q	FYE Mar 31, 2026 3Q	FYE Mar 31, 2026 4Q	YoY Change (%)	QoQ Change (%)
Net sales	86,713	88,515	89,201	2.9	0.8
Operating profit	2,057	7,494	3,477	69.0	(53.6)
Operating margin	2.4%	8.5%	3.9%	1.5%pt	(4.6)%pt
Ordinary profit	(3,167)	11,694	4,328	–	(63.0)
Profit attributable to owners of parent	(5,837)	7,086	2,179	–	(69.2)
Capacitors	60,277	61,702	63,962	6.1	3.7
Inductors	15,100	17,132	15,694	3.9	(8.4)
Integrated modules & devices	5,137	3,635	3,520	(31.5)	(3.2)
Others	6,197	6,044	6,024	(2.8)	(0.3)

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.