Murata Manufacturing (6981): FY2025 Results Summary — Record Revenue on Capacitor and Data-Center Demand

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

Murata Manufacturing reported record consolidated revenue of 1,830.9 billion yen for FY2025 (fiscal year ended March 31, 2026), up 5.0% year on year, as growth in capacitors across a wide range of applications, mainly servers, more than offset declines in high-frequency modules and multilayer resin substrates for smartphones. Operating profit rose 0.8% year on year to 281.8 billion yen, as gains in capacity utilization from higher production output and cost reduction efforts offset product price declines, higher fixed costs, and increased one-time expenses, including a goodwill impairment loss related to the surface acoustic wave (SAW) filter business. Profit attributable to owners of parent was essentially flat at 233.9 billion yen (+0.0% year on year). For FY2026, the company projects a second consecutive year of record revenue at 1,960.0 billion yen (+7.1%) and operating profit of 380.0 billion yen (+34.8%), driven by stronger data-center-related demand.

Consolidated Results (Full-Year Actual)

Revenue of 1,830.9 billion yen exceeded the company’s February projection of 1,800.0 billion yen by 30.9 billion yen (+1.7%), and operating profit of 281.8 billion yen exceeded the February projection of 270.0 billion yen by 11.8 billion yen (+4.4%). On a constant-currency basis, revenue increased 103.6 billion yen and operating profit increased 10.2 billion yen year on year. The average exchange rate for the fiscal year was 150.78 yen per US dollar, versus 152.57 yen per US dollar in FY2024; exchange rate sensitivity is approximately 9 billion yen in revenue and approximately 4.5 billion yen in operating profit per 1 yen change against the US dollar per year. ROIC (after-tax basis) was 9.7%, down 0.3 percentage point year on year but up 0.4 percentage point versus the February projection of 9.3%.

Item	FY2025	FY2024	Change (YoY)
Revenue	1,830.9 (100.0%)	1,743.4 (100.0%)	+87.5 (+5.0%)
Operating profit	281.8 (15.4%)	279.7 (16.0%)	+2.1 (+0.8%)
Profit before tax	308.6 (16.9%)	304.4 (17.5%)	+4.2 (+1.4%)
Profit attributable to owners of parent	233.9 (12.8%)	233.8 (13.4%)	+0.1 (+0.0%)

Segment Results

By operating segment, Capacitors revenue grew 12.6% year on year to 936.4 billion yen, driven by increased multilayer ceramic capacitor (MLCC) sales for servers, smartphones, and distributors. Inductors and EMI filters revenue increased 11.0% to 223.3 billion yen, on higher inductor sales for smartphones and mobility and higher EMI suppression filter sales for servers and mobility. Within Devices/Modules, High-Frequency Device and Communications Module revenue fell 11.0% to 394.8 billion yen as high-frequency modules for smartphones and PCs and multilayer resin substrates for smartphones declined. Battery and Power supply revenue was down 1.1% at 154.1 billion yen, as growth in power modules for servers was offset by a decrease in lithium-ion secondary batteries for video game consoles and power tools. Functional Device revenue rose 9.5% to 107.1 billion yen on higher sensor sales for mobility. Devices/Modules operating profit decreased year on year, mainly due to deteriorated profitability in the High-Frequency Device and Communications Module business amid the revenue decline, as well as impairment losses on goodwill and fixed assets. ROIC (pre-tax basis) was 22.4% for the Components category (up from 21.2% in FY2024) and -3.5% for the Devices/Modules category (down from 1.2%).

Segment	Metric	FY2025	FY2024
Capacitors	Revenue (B JPY, % of total)	936.4 (51.1%)	831.8 (47.7%)
Inductors and EMI filters	Revenue (B JPY, % of total)	223.3 (12.2%)	201.3 (11.5%)
High-Frequency Device and Communications Module	Revenue (B JPY, % of total)	394.8 (21.6%)	443.6 (25.4%)
Battery and Power supply	Revenue (B JPY, % of total)	154.1 (8.4%)	155.7 (8.9%)
Functional Device	Revenue (B JPY, % of total)	107.1 (5.9%)	97.8 (5.6%)
Others	Revenue (B JPY, % of total)	15.2 (0.8%)	13.1 (0.9%)
Total	Revenue (B JPY, % of total)	1,830.9 (100.0%)	1,743.4 (100.0%)

FY2026 Forecast

For FY2026 (fiscal year ending March 31, 2027), Murata projects revenue of 1,960.0 billion yen, up 7.1% year on year, marking a second consecutive year of record revenue, on the back of stronger data-center-related demand mainly for capacitors. Operating profit is projected at 380.0 billion yen, up 34.8% year on year, as gains in capacity utilization from higher production output and an improved product mix are expected to offset price declines and higher fixed costs. The company plans capital expenditures of 250.0 billion yen, roughly the same level as the previous fiscal year, including approximately 40 billion yen of the approximately 80 billion yen in additional production investment for capacitors used in data centers. As priority initiatives to capture data-center growth, Murata is implementing approximately 80.0 billion yen in additional capital expenditures for capacitors (approximately 40 billion yen in each of FY2026 and FY2027) and has launched sales of multiple power supply products for data centers. Server-related sales in the capacitor sector are projected to increase 85%-90% year on year, and overall capacitor ASP is projected to rise 5%-10% year on year. The assumed exchange rate for FY2026 is 150.00 yen per US dollar, versus an actual average of 150.78 yen per US dollar in FY2025.

Item	Forecast (FY2026)	FY2025 (Actual)
Revenue	1,960.0 (100.0%)	1,830.9 (100.0%)
Operating profit	380.0 (19.4%)	281.8 (15.4%)
Profit before tax	390.0 (19.9%)	308.6 (16.9%)
Profit attributable to owners of parent	293.0 (14.9%)	233.9 (12.8%)
Capital expenditures	250.0	247.8

Shareholder Returns

For FY2025 (fiscal year ended March 31, 2026), Murata increased its annual dividend by 8 yen to 65 yen per share (interim: 30 yen, year-end: 35 yen). For FY2026, the company projects a further increase of 5 yen to 70 yen per share (interim: 35 yen, year-end: 35 yen). Murata also plans to execute a share buyback for FY2026 with an upper limit of 150.0 billion yen, the largest in the company’s history, covering up to 75.0 million shares (up to 4.12% of the total number of outstanding shares, excluding treasury stock), to be conducted from May 11, 2026 to January 29, 2027, for the stated purpose of enhancing capital efficiency; acquired shares are to be retired.

Item	FY2025 (Actual)	FY2026 (Projected)
Annual dividend per share	65 JPY	70 JPY
Interim dividend per share	30 JPY	35 JPY
Year-end dividend per share	35 JPY	35 JPY
Planned share buyback upper limit	—	150.0 billion yen (up to 75.0 million shares)

Medium-Term Plan / Topics

On February 28, 2026, Murata became aware of the possibility of unauthorized access to its IT environment and commenced a full-scale investigation on March 1. The investigation confirmed that unauthorized access had occurred and that data was improperly accessed. Murata stated that its systems are operating normally and that its production and sales activities have not been affected, and that it has not confirmed any public disclosure of the obtained information, nor any secondary damage or unauthorized use of information resulting from the incident. Data that has, or might have, been unlawfully obtained by a third party includes personal information of approximately 73,000 Murata employees and people associated with them (including family members and former employees) and approximately 15,000 people outside Murata (customers, suppliers, and other stakeholders). Measures already implemented include blocking suspicious communications, enhancing monitoring, and strengthening access, authentication, and permission management; planned future measures include expanding external supply-chain monitoring as well as third-party evaluations and audits.

Under Medium-Term Direction 2027, Murata plans additional MLCC investment for FY2027 in response to growing data-center demand, to be implemented even if it exceeds the medium-term direction’s capital expenditure level of 680 billion yen. The company also stated it will continue to explore opportunities for discontinuous long-term growth, including environmental investments, IT infrastructure, alliances, and M&A. On shareholder returns, Murata is implementing a dividend increase aimed at achieving a dividend on equity (DOE) ratio of 5%, with the FY2026 DOE projected at 4.6%, alongside share buybacks to improve capital efficiency, with acquired shares immediately retired.

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.