MITSUBA Corporation (7280): FY2025 Results Summary — Operating Income Up 114.2% on Motorcycles and Cost Savings

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

Note: MITSUBA labels the year covered by these materials as the “Fiscal year ended March 2026” (FY03/2026); on this site it is classified as FY2025. All labels, units and figures below follow the company’s materials as reported.

MITSUBA Corporation reported net sales of 348.5 JPY B for the fiscal year ended March 31, 2026, down 0.7 JPY B year on year (99.8%), while operating income rose 2.9 JPY B to 23.9 JPY B (114.2%). According to the company, the motorcycle business and the Information Service Operations performed steadily, but net sales declined due to decreased sales in the automobile business, primarily in China, as well as the impact of the stronger yen. Operating income increased, supported by higher revenue from the motorcycle business, expanded profitability in the Information Service Operation, and the effects of various cost-saving initiatives. Profit attributable to owners of parent was 11.8 JPY B (99.6%).

Consolidated Results (Full-Year Actual)

The operating margin improved to 6.9% from 6.0%, a gain of +0.9pts. Ordinary income rose 4.1 JPY B to 23.9 JPY B (121.0%), but profit before tax declined to 17.7 JPY B (97.9%). Items below ordinary income included extraordinary income/loss of (6.2), corporation taxes of (6.5) and profit attributable to non-controlling interests of 0.6. Full-year topics cited by the company include motorcycle unit sales by major customers, primarily in India and Brazil, remaining strong (up 9% year on year); automobile unit sales by major customers, primarily in China, declining (down 5% year on year); the impact of U.S. tariffs, with the effective negative impact amounting to 1.4 billion yen; and the recording of an impairment loss as a result of a significant production decrease at major customers in China (5.3 billion yen). Average exchange rates for April-March were USD 150.68, EUR 174.69 and CNY 21.23, against USD 152.62, EUR 163.90 and CNY 21.11 in the previous fiscal year.

Item (Unit: JPY B)	Fiscal year ended March 2025	Fiscal year ended March 2026	Change	Percentage change
Net sales	349.3	348.5	-0.7	99.8%
Operating income	20.9	23.9	2.9	114.2%
Operating margin	6.0%	6.9%	–	+0.9pts
Ordinary income	19.7	23.9	4.1	121.0%
Profit before tax	18.0	17.7	-0.3	97.9%
Profit (attributable to owners of parent)	11.8	11.8	-0.0	99.6%

On the balance sheet, total assets stood at 348.6 JPY B as of March 31, 2026 versus 333.5 JPY B a year earlier, while interest-bearing debt fell 12.8 to 138.6. The equity ratio improved to 34.4% from 28.7% and the net D/E ratio improved to 0.3 from 0.6. Cash flow from operating activities totalled 28.6 JPY B and cash flow from investing activities was (11.6), leaving free cash flow of 16.9 JPY B.

Segment Results

In the transportation equipment-related operations, net sales were 320.0 JPY B and operating income 20.0 JPY B, with the operating margin rising to 6.3% from 5.6%. The company states that despite the impact of declining sales primarily in the China region and rising personnel costs associated with wage increases, the motorcycle business in India and Brazil continued to perform strongly, and the effects of various cost-saving initiatives enabled the Company to secure higher profits despite a decrease in revenue. In the information service operations, both net sales and profit increased due to the steady performance of the public infrastructure segment and the social and industrial business segments, lifting the operating margin to 12.9%.

Segment (Unit: JPY B)	Net sales FY ended March 2025	Operating income (A)	Operating margin	Net sales FY ended March 2026	Operating income (B)	Operating margin	Change (B-A)	Operating income YoY (B/A)
Transportation equipment-related operations	322.8	18.1	5.6%	320.0	20.0	6.3%	1.9	110.6%
Information service operations	20.3	2.1	10.6%	23.2	2.9	12.9%	0.8	138.3%
Other operations	6.1	0.5	9.5%	5.2	0.8	15.4%	0.2	137.1%
Total	349.3	20.9	6.0%	348.5	23.9	6.9%	2.9	114.2%

Results by Region, Customer and Business

By region, the company reports that in Japan both the transportation equipment-related business and the Information Service Operations achieved increases in sales and profit; in the Americas, despite the impact of U.S. tariffs, profit increased due to strong motorcycle sales in South America; in Asia, while the motorcycle business performed steadily, overall performance remained flat due to a decline in sales in the automobile business; and in China, sales declined due to sluggish sales of Japanese automakers. Net sales by region were Japan 119.2 (104.5%), Americas 90.4 (100.2%), Europe 24.5 (105.3%), Asia 86.1 (98.9%) and China 28.1 (81.5%). Operating income by region was Japan 11.4 (104.4%), Americas 3.1 (4.2times), Europe 0.8 (2.3times), Asia 7.5 (96.6%) and China 0.9 (89.8%).

On the internal management basis used for the transportation equipment-related operations, which does not match the consolidated segment figures, sales to Honda were 146.9 JPY B, or 43.9% of total sales, up 5.1 (103.6%), of which motorcycle sales were 88.3 (105.9%) and automobile sales 58.6 (100.3%). Sales to the VW Group fell to 2.4 from 5.9 (40.7%) and sales to SUBARU fell to 5.9 from 6.9 (85.5%).

By business (Unit: JPY B)	Net sales FY ended March 2025	Percentage of total sales	Net sales FY ended March 2026	Percentage of total sales	Change	YoY percentage change
Automobile	190.9	57.0%	183.4	54.9%	-7.5	96.1%
Motorcycle	104.5	31.2%	110.4	33.0%	+5.9	105.6%
Electrification solutions	39.6	11.8%	40.6	12.1%	+1.0	102.5%
Total	335.0		334.4		-0.6	99.8%

Forecast for the Fiscal Year Ending March 31, 2027

For the fiscal year ending March 31, 2027 the company forecasts net sales of 340.0 JPY B (97.5%), operating income of 19.0 JPY B (79.5%), ordinary income of 18.5 JPY B (77.3%) and profit attributable to owners of parent of 11.5 JPY B (97.3%), with an operating margin of 5.5%. The company explains that, taking into account sluggish growth in automobile sales by major customers, primarily in China, as well as rising material costs driven by factors such as the situation in the Middle East, it expects a decrease in both revenue and profit, and that going forward it will continue to work to improve profitability through price optimization and cost-reduction initiatives. Assumed exchange rates are USD 150.00, EUR 175.00 and CNY 21.00.

Item (Unit: JPY B)	FY ended March 2026 Full term (A)	FY ending March 2027 1st half	FY ending March 2027 2nd half	FY ending March 2027 Full term (B)	Change (B-A)	Percentage change (B/A)
Net sales	348.5	165.0	175.0	340.0	-8.5	97.5%
Operating income	23.9	8.0	11.0	19.0	-4.9	79.5%
Operating margin	6.9%	4.8%	6.3%	5.5%	–	-1.3pts
Ordinary income	23.9	8.0	10.5	18.5	-5.4	77.3%
Profit (attributable to owners of parent)	11.8	5.0	6.5	11.5	-0.3	97.3%

Shareholder Returns

For the fiscal year ended March 2026 the annual dividend per share was 25.00 yen, consisting of 0.00 yen at the second quarter-end and 25.00 yen at the year-end, including a commemorative dividend of 5 yen. For the fiscal year ending March 2027 the company states that, based on its dividend policy, it plans to increase the dividend to 30 yen, comprising 0.00 yen at the second quarter-end and 30.00 yen at the year-end.

Annual dividends per share (Unit: JPY)	2nd quarter-end	Year-end	Total
Fiscal year ended March 2026	0.00 yen	25.00 yen	25.00 yen
Fiscal year ending March 2027 (forecast)	0.00 yen	30.00 yen	30.00 yen

Topics

The company established a dedicated department, the “New Business Planning Department,” with the aim of pursuing growth businesses outside the automotive industry, integrating the motor and control technologies cultivated in the transportation equipment field with IT and IoT technologies in the information services field. As the first project undertaken by that department, newly established in April 2026, MITSUBA concluded a joint development agreement with Toyo Denki Seizo and Taihei Electric for an electric door system for next-generation mobility, including railway vehicles, buses, BRT and LRT. MITSUBA is also promoting the design, evaluation and testing of motors optimized for the “mibot” small mobility robot through collaboration with KG Motors Inc., a project that has progressed to the stage of deliveries to initial customers and proof-of-concept operations at corporate customers.

Capital expenditures for the fiscal year ended March 2026 were 11.6 JPY B, depreciation was 13.4 JPY B and R&D expenses were 16.4 JPY B.

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.