Nichicon (6996): FY2025 Results Summary — Operating Income Up 24.1% on Capacitor Recovery; Record Sales Forecast

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

Nichicon Corporation (TSE Prime, Securities Code: 6996), a manufacturer of capacitors and home energy storage systems, reported consolidated net sales of ¥169.7 billion for the fiscal year ended March 2026, down 3.4% year on year. Operating income rose sharply to 6,456 million yen, up 24.1%, driven by a recovery in the Capacitor business, and net income attributable to owners of the parent increased 7.4% to 6,310 million yen. For the fiscal year ending March 2027, the company forecasts record-high consolidated net sales of ¥185.0 billion. Note: the company’s materials refer to the period under review as the fiscal year ended March 2026 (the charts in the deck label it FY2025); this site classifies it as FY2025.

Consolidated Results (Full-Year Actual)

Net sales declined 3.4% to 169,724 million yen, while all profit lines increased. According to the materials, operating income in the Capacitor business increased sharply, tripling year on year to ¥4.5 billion, supported by sales growth in aluminum electrolytic capacitors for priority applications — including automotive-related equipment and information and communications equipment such as generative AI servers — as well as productivity improvements and structural reforms implemented during the previous fiscal year. In the NECST business, segment operating income was ¥1.8 billion, down 49.0% year on year, primarily because lower sales reduced utilization and weighed on profitability. Figures below are in millions of yen.

Item	Fiscal year ended March 2025	Fiscal year ended March 2026	Increase/Decrease	Percent change
Net sales	175,751	169,724	(6,026)	(3.4%)
Operating income	5,203	6,456	1,252	24.1%
Ordinary income	7,511	8,326	815	10.9%
Net income attributable to owners of the parent	5,877	6,310	433	7.4%
Foreign Exchange Rate (¥/US$)	¥151.36	¥150.03	Yen appreciation ¥1.33	—

Segment Results (Net Sales by Product Type)

In the Capacitor business, sales rose 3.6% to 102,748 million yen, with orders rising for conductive polymer aluminum solid electrolytic capacitors, conductive polymer hybrid aluminum electrolytic capacitors, and large aluminum electrolytic capacitors used in generative AI servers and data centers, and continued demand expansion for capacitors used in advanced driver-assistance systems (ADASs) and electrification units. Film capacitors for xEVs emerged from the adjustment phase seen through 1H and began recovering in the second half, supported by the launch of mass production for new projects. In the NECST business, sales fell 12.5% to 66,976 million yen: household energy storage system sales declined due to the delayed launch of new products, and switching power supplies were affected by tariff issues and stagnation in the Chinese market. Overseas sales were 86,113 million yen (down 0.9%), and the overseas sales ratio rose from 49.4% to 50.7%. Figures below are in millions of yen; year-on-year changes are shown in %, with figures in parentheses indicating decreases.

Segment / Product	Fiscal year ended March 2025	Fiscal year ended March 2026	Year-on-year change	Fiscal year ending March 2027 (forecast)	Year-on-year change (forecast)
Capacitor business	99,168	102,748	3.6	112,000	9.0
— Aluminum electrolytic capacitors	79,336	82,032	3.4	88,000	7.3
— Film capacitors	19,831	20,715	4.5	24,000	15.9
NECST business	76,583	66,976	(12.5)	73,000	9.0
— Energy storage	35,581	32,419	(8.9)	39,000	20.3
— Power supply	26,274	21,707	(17.4)	18,700	(13.9)
— Others	14,727	12,849	(12.8)	15,300	19.1
Total	175,751	169,724	(3.4)	185,000	9.0

Forecast for the Fiscal Year Ending March 2027

The company forecasts record-high consolidated net sales of ¥185.0 billion, up 9.0% year on year. It projects growth in aluminum electrolytic capacitor sales driven by expanded shipments for generative-AI server power supplies, and anticipates xEV-related demand will stimulate a rise in film capacitor sales; the year-on-year sales growth target is 9.0% for the Capacitor business and also 9.0% for the NECST business, where a rise in sales from household energy storage systems is expected to drive the upturn. Despite anticipated higher raw material costs and rising personnel expenses, the company projects operating income of ¥8.7 billion, up 34.8% year on year, and net income attributable to owners of the parent of ¥6.7 billion, up 6.2%. Figures below are in millions of yen unless otherwise noted.

Item	Results for the fiscal year ended March 2026	Forecast for the fiscal year ending March 2027	Percent change / Value
Net sales	169,724	185,000	9.0%
Operating income	6,456	8,700	34.8%
Ordinary income	8,326	9,000	8.1%
Net income attributable to owners of the parent	6,310	6,700	6.2%
Capital expenditures	7,568	10,000	32.1%
Depreciation and amortization	8,077	8,500	5.2%
Research and development costs	7,279	7,500	3.0%
Average USD rate	¥150.03	¥150.00	Yen appreciation ¥0.03
Dividend per share	¥37	¥39	Dividend increase +¥2

Shareholder Returns

With a target consolidated payout ratio of 30%, Nichicon has adopted a progressive dividend policy (maintaining or increasing the annual dividend per share based on the previous year’s business performance), under which it raises dividends in line with sustainable profit growth. The annual dividend per share for the fiscal year ended March 2026 was ¥37, and the company plans ¥39 for the fiscal year ending March 2027 — a forecast of its 14th period of consecutive dividend increases. In addition, as part of enhanced shareholder returns, the company conducted a ¥1.6 billion share buyback and canceled 8 million shares.

Initiatives for the Fiscal Year Ending March 2027

In the Capacitor business, Nichicon is focusing on growth markets such as automotive applications (including 48V systems and film capacitors for xEVs) and information and communications equipment (AI servers and related devices). The company has developed the “KBA Series” of multilayer aluminum polymer capacitors (MPC), for which mass production began in April 2026, with plans to expand monthly capacity to 10 million units during FY2026. For xEV film capacitors, it has established a global monthly production capacity of 450,000 units (350,000 in Japan and 100,000 in China), including a new production facility in Shiga Prefecture that started production in June 2025.

In the NECST business, the company launched a new standalone energy storage system in March 2026, completing a broad lineup comprising tribrid, hybrid, and standalone systems; cumulative domestic sales of its household energy storage systems exceeded 236,000 units as of end-December 2025. Per the materials, household energy storage system sales were ¥32.4 billion in FY2025 and are forecast at ¥39.0 billion for FY2026. The company is also taking on the challenge of fusion energy: it handles projects involving high-capacity power supplies and related equipment used to create plasma conditions, and is supporting the opening of Kyoto Fusioneering Ltd.’s R&D center, the KF Shiga Innovation Factory (announced in February 2026).

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.