AISIN (7259): FY2025 Results Summary — Operating Profit Up 12.7% on Structural Reforms, 100 Billion Yen Buyback Planned

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

Note: AISIN labels the fiscal year ended March 31, 2026 as “FYE2026”; this article follows our site convention of “FY2025” for the latest completed full year in the title and slug, while all figures and period labels in the text and tables are kept exactly as reported in the company’s materials. AISIN CORPORATION reported revenue of 5,117.7 billion yen for the fiscal year ended March 31, 2026 (FYE2026), up 221.6 billion yen or 4.5% year on year, due to an increase in customers’ vehicle production volumes and sales volumes of powertrain units. Operating profit increased 25.8 billion yen (+12.7%) to 228.7 billion yen, despite investments for human capital and the future and the impact of tariffs, due to efforts to improve the corporate structure and the effects of structural reforms. Profit for the period attributable to owners of the parent rose 59.6% to 171.6 billion yen, mainly due to higher profit before income taxes and reduced income tax expenses resulting from the sale of cross-shareholdings. The annual dividend for the year is 70 yen and the company plans to implement stock repurchases totalling 100 billion yen; for the next fiscal year it expects revenue of 5,250.0 billion yen and operating profit of 235.0 billion yen.

Consolidated Results (FYE2026 Full-Year Actual)

Revenue, operating profit, profit before income taxes and profit for the period all increased year on year. The operating profit margin (rate to revenue) improved to 4.5% from 4.1%, while the margin on profit for the period rose to 3.4% from 2.2%. Preconditions behind the results were an assumed USD rate of 151 JPY (down 2 JPY, -1.3% from 153 JPY) and a CNY rate of 21.2 JPY (up 0.1 JPY, +0.5% from 21.1 JPY). Toyota production volume was 999 (in units of 10,000 vehicles), up 23 (+2.4%) from 976, and powertrain unit sales (total sales of AT, CVT, HEV and eAxle) were 1,019 (in units of 10,000 units), up 5 (+0.5%) from 1,014, of which electrification units (total sales of HEV and eAxle) rose 38 (+16.4%) to 269 from 231.

Item (Billion JPY unless noted)	FYE2026 Results	FYE2025 Results	Change	Change Rate
Revenue	5,117.7	4,896.1	+221.6	+4.5%
Operating Profit (Rate to Revenue)	228.7 (4.5%)	202.9 (4.1%)	+25.8	+12.7%
Profit before Income Taxes (Rate to Revenue)	247.9 (4.8%)	173.4 (3.5%)	+74.5	+43.0%
Profit for the Period* (Rate to Revenue)	171.6 (3.4%)	107.5 (2.2%)	+64.1	+59.6%
FX Rate: USD	151 JPY	153 JPY	-2 JPY	-1.3%
FX Rate: CNY	21.2 JPY	21.1 JPY	+0.1 JPY	+0.5%
Toyota Production	999 (10,000 unit)	976 (10,000 unit)	+23 (10,000 unit)	+2.4%
Powertrain Unit Sales	1,019 (10,000 unit)	1,014 (10,000 unit)	+5 (10,000 unit)	+0.5%
(number of electrification unit)	(269)	(231)	(+38)	(+16.4%)

*Profit for the Period Attributable to Owners of the Parent.

Revenue by Customer

Revenue from the TOYOTA Group grew to 3,567.9 billion yen, or 69.7% of total revenue, from 3,344.1 billion yen (68.3%). Revenue from Other OEMs edged down 8.0 billion yen (-0.6%) to 1,423.5 billion yen, or 27.8% of revenue, from 29.2%, while Energy Solutions and Others rose to 126.2 billion yen (2.5%) from 120.3 billion yen (2.5%). Within Other OEMs, SUZUKI grew 46.2 billion yen (+24.6%) to 234.1 billion yen and MITSUBISHI rose 9.4 billion yen (+13.2%) to 80.3 billion yen, while Stellantis declined 30.0 billion yen (-13.6%) to 191.3 billion yen and VOLVO declined 9.8 billion yen (-10.3%) to 84.4 billion yen. As a reference figure, revenue from Chinese OEMs fell 29.5 billion yen (-13.2%) to 193.4 billion yen.

Customer (Billion JPY)	FYE2026 Results	FYE2025 Results	Change	Change Rate (%)
SUZUKI	234.1	187.9	+46.2	+24.6
Stellantis	191.3	221.3	-30.0	-13.6
VW&Audi	150.7	158.1	-7.4	-4.7
HONDA	84.5	89.0	-4.5	-5.1
VOLVO	84.4	94.2	-9.8	-10.3
MITSUBISHI	80.3	70.9	+9.4	+13.2
NISSAN	68.3	73.1	-4.8	-6.7
Geely	50.6	55.1	-4.5	-8.2
ISUZU	45.7	40.9	+4.8	+11.8
China FAW	43.7	47.9	-4.2	-8.9
Others	389.9	393.1	-3.2	-0.8
Total (Other OEMs)	1,423.5	1,431.5	-8.0	-0.6
(Reference) Chinese OEMs	193.4	222.9	-29.5	-13.2

Segment (Regional) Results

Segment revenue is presented on a revenue-to-external-customers basis. Japan revenue rose 77.4 billion yen to 2,518.0 billion yen with operating profit up 6.6 billion yen to 80.2 billion yen. North America posted the largest revenue increase, up 109.4 billion yen to 1,181.2 billion yen, with operating profit up 9.8 billion yen to 39.1 billion yen (including the tariffs impact). Asia & Others revenue rose 79.4 billion yen to 583.7 billion yen and operating profit rose 11.0 billion yen to 73.8 billion yen. Europe revenue fell 15.5 billion yen to 268.6 billion yen with operating profit of 4.1 billion yen (-0.2 billion yen), and China revenue fell 29.1 billion yen to 566.0 billion yen with operating profit of 30.6 billion yen (-1.7 billion yen).

Region (Billion JPY)	Revenue FYE2026	Revenue FYE2025	Revenue Change	Op. Profit FYE2026	Op. Profit FYE2025	Op. Profit Change
Japan	2,518.0	2,440.6	+77.4	80.2	73.6	+6.6
North America	1,181.2	1,071.8	+109.4	39.1	29.3	+9.8
Europe	268.6	284.1	-15.5	4.1	4.3	-0.2
China	566.0	595.1	-29.1	30.6	32.3	-1.7
Asia & Others	583.7	504.3	+79.4	73.8	62.8	+11.0

Analysis of Operating Profit (FYE2026)

Operating profit rose from 202.9 billion yen to 228.7 billion yen. Corporate structure improvement and structural reforms contributed +81.0 billion yen, while investments for human capital and the future, etc. were -39.7 billion yen and the tariffs impact was -5.8 billion yen. Sales and product mix, etc. was -24.5 billion yen, comprising sales volume fluctuations of +14.7 billion yen and sales price variance and product mix of -39.2 billion yen. The FX impact was +6.8 billion yen (USD -2.9, CNY +0.6, EUR +1.0, THB +8.1). The company states it is promoting structural reforms in a “SPEED&AGILE” way for a “Full Model Change” that will “Change Inside Gain Strength,” improving profitability by launching new products and electrified products, improving profits of subsidiaries that are facing challenges, and reducing fixed costs with no exceptions, while expanding investments in human capital, R&D for electrified and intelligent products, and preparation for production of electrified products.

Factor (Billion JPY)	Impact
FYE2025 Results	202.9
Sales & Product Mix, etc.	-24.5
FX Impact	+6.8
Materials/Logistics Cost	+8.0
Corporate Structure Improvement / Structural Reforms	+81.0
Investments for Human Capital / the Future, etc.	-39.7
Tariffs Impact	-5.8
FYE2026 Results	228.7

FYE2027 Forecast

For FYE2027, AISIN forecasts revenue of 5,250.0 billion yen (+132.3 billion yen, +2.6%) and operating profit of 235.0 billion yen (+6.3 billion yen, +2.7%), while incorporating a certain level of impact from the Middle East. Profit before income taxes is expected to fall 2.9 billion yen (-1.2%) to 245.0 billion yen and profit for the period attributable to owners of the parent to fall 21.6 billion yen (-12.6%) to 150.0 billion yen. Assumed FX rates are USD 150 JPY and CNY 21.5 JPY. Powertrain unit sales are projected at 1,070 (in units of 10,000 units), up 51 (+5.0%), with electrification units up 106 (+39.3%) to 375. By customer, TOYOTA Group revenue is forecast at 3,665.0 billion yen, Other OEMs at 1,450.0 billion yen and Energy Solutions and Others at 135.0 billion yen.

Item (Billion JPY unless noted)	FYE2027 Forecast	FYE2026 Results	Change	Change Rate
Revenue	5,250.0	5,117.7	+132.3	+2.6%
Operating Profit (Rate to Revenue)	235.0 (4.5%)	228.7 (4.5%)	+6.3	+2.7%
Profit before Income Taxes (Rate to Revenue)	245.0 (4.7%)	247.9 (4.8%)	-2.9	-1.2%
Profit for the Period* (Rate to Revenue)	150.0 (2.9%)	171.6 (3.4%)	-21.6	-12.6%
FX Rate: USD	150 JPY	151 JPY	-1 JPY	-0.7%
FX Rate: CNY	21.5 JPY	21.2 JPY	+0.3 JPY	+1.4%
Powertrain Unit Sales	1,070 (10,000 unit)	1,019 (10,000 unit)	+51 (10,000 unit)	+5.0%
(number of electrification unit)	(375)	(269)	(+106)	(+39.3%)

In the FYE2027 operating profit bridge, corporate structure improvement and structural reforms (including prior one-offs) are expected to add +82.0 billion yen, offset by sales and product mix, etc. of -19.0 billion yen (sales volume fluctuations +31.8, sales price variance and product mix -50.8), an FX impact of -5.0 billion yen (USD -1.7, CNY +2.0, EUR 0.0, THB -5.3), materials/logistics cost of -5.0 billion yen, investments for human capital and the future, etc. of -31.7 billion yen, and a Middle East impact of -15.0 billion yen. Excluding the Middle East impact, the FYE2027 operating profit forecast would be 250.0 billion yen.

Region (Billion JPY)	Revenue FYE2027 Forecast	Revenue FYE2026 Results	Op. Profit FYE2027 Forecast	Op. Profit FYE2026 Results
Japan	2,655.0	2,518.0	99.0	80.2
North America	1,210.0	1,181.2	48.0	39.1
Europe	240.0	268.6	0.0	4.1
China	540.0	566.0	15.0	30.6
Asia & Others	605.0	583.7	73.0	73.8

Shareholder Returns

The annual dividend for FYE2026 is 70 yen per share, an increase of 10 yen, comprising an interim dividend of 30 yen and a year-end dividend of 40 yen; the year-end dividend is 5 yen above the forecast announced at the beginning of the fiscal year. Total dividends were 51.1 billion yen and the company repurchased 78.3 billion yen of stock in FYE2026, after 83.9 billion yen in FYE2025, giving a DOE of 3.2% and a total return ratio of 75.4%. The annual dividend forecast for FYE2027 is 75 yen per share, an increase of 5 yen (interim dividend of 35 yen and year-end dividend of 40 yen), and the company will repurchase 100.0 billion yen of stock (amount resolved). AISIN has adopted DOE as a new dividend indicator: starting from a level of 3.0% and supported by improvements in ROE, it plans to increase DOE in stages, targeting approximately 3.5% by FYE2029, alongside flexible stock repurchases. For the calculation of DOE, “equity attributable to owners of the parent” is based on adjusted figures that exclude “other components of equity.”

Item	FYE2027 Forecast	FYE2026	FYE2025
Dividend per Share (yen)	75.00	70.00	60.00
Total Dividends (Billion JPY)	This cannot be confirmed from the materials.	51.1	46.1
Stock Repurchases (Billion JPY)	100.0	78.3	83.9
DOE	This cannot be confirmed from the materials.	3.2%	3.0%
Total Return Ratio	This cannot be confirmed from the materials.	75.4%	121.0%

FYE2029 Mid-Term Business Plan

AISIN positions FYE2027 as the first year of the FYE2029 Mid-Term Business Plan and will strengthen investments for mid- to long-term growth in line with the original plan, with full-scale profit growth expected toward FYE2029 driven by reforming the profit structure and increasing powertrain unit volumes from sales expansion. Operating profit is shown at 228.7 billion yen in FYE2026, 235.0 billion yen in FYE2027 and 330.0 billion yen in the FYE2029 plan. Key points of the FYE2027 operating profit forecast are a strengthening of investment for mid- to long-term growth of -23 billion yen (R&D for electrification and intelligence and new product launches, strengthening of digital infrastructure, sustainable investments and creation of new businesses) and a Middle East impact of -15 billion yen from rising resource prices. Toward FYE2029, the drivers cited are reforming the profit structure, sales expansion and volume growth, and future investment in human capital and DX.

Balance Sheet Reformation and Capital Policy

Reviewing the completed FYE2026 Mid-Term Business Plan, AISIN promoted asset reduction targeting 10% of total assets (400 Billion JPY) and generated 449.4 billion yen in funds: 123.2 billion yen from business asset reduction, 266.4 billion yen from the execution of sales of cross-shareholdings (both cumulative totals from FYE2024 to FYE2026) and 59.8 billion yen from global inventory reduction. The number of cross-shareholdings fell to 3 with a balance sheet amount of 1.2 billion yen at FYE2026, from 22 holdings and 175.0 billion yen at FYE2022. On capital policy, the company regards the capitalization ratio (interest-bearing debt divided by the sum of interest-bearing debt and equity) as an important financial index and believes a ratio from 25% to 30% represents the optimal balance; despite the buybacks of 83.9 billion yen in FYE2025 and 78.3 billion yen in FYE2026, equity continued to accumulate and the current capitalization ratio declined, so the FYE2027 repurchase of approximately 100 billion yen is intended to enhance capital efficiency and gradually raise the ratio to a desirable level over the medium to long term.

R&D and Business Topics

R&D expenditure rose to 265.4 billion yen in FYE2026, equivalent to 5.2% of revenue, and is planned at 275.0 billion yen (5.2%) in FYE2027. On business topics, AISIN is beginning contract manufacturing of Mazda’s six-speed AT at its U.S. subsidiary AISIN Drivetrain, Inc. (ADI) in Indiana, leveraging its transmission production technologies and quality management expertise to strengthen supply capability and responsiveness in North America. In India, AISIN and its consolidated subsidiary AISIN AUTOMOTIVE HARYANA PRIVATE LIMITED (AHL) have decided to invest approximately 32 billion yen to expand AHL’s existing plant and build a new plant in Sambhajinagar, Maharashtra, with operations at both scheduled to begin in FYE2030, to capture growing demand for automatic transmissions. AISIN is also applying its ultra-fine water penetration technology “HYDRAID” to the beauty field through a strategic partnership with MTG, whose first product is “ReFa HYDRAID,” and showcased a concept installing ReFa HYDRAID in a LEXUS vehicle at Auto China 2026. In energy, AISIN launched a demonstration project installing perovskite solar cells at the Aichi Prefectural Government West Building, the first such demonstration at a public facility in Aichi Prefecture, and established a production company for its Bio-M-Coke biofuel in Indonesia, PT. ATP Bio Indonesia, with full-scale production to begin in FYE2027.

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.