NAGANO KEIKI CO., LTD. (7715): FY2025 Results Summary — Semiconductor-Related Adjustment Weighs on Profit as Dividend Rises to ¥52

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

NAGANO KEIKI CO., LTD., a pressure measurement equipment maker, reported lower net sales and operating profit for the fiscal year ended March 31, 2026 (FY03/2026), as demand adjustments continued mainly in semiconductor-related products. The Pressure Gauge business, Measurement & Control Equipment business and Die-cast business all posted higher operating profit, but this was not enough to offset a sharp decline in the Pressure Sensor business. The Company raised its annual dividend to ¥52 per share, up ¥4 year on year. Note: the company’s results presentation labels the fiscal year ended March 31, 2026 as “FY03/2026”; this article follows that labeling in the body text, tables and segment data below.

Consolidated Results (FY03/2026 Actual)

Net sales decreased 2.7% year on year to ¥67,691 million and operating profit decreased 8.8% to ¥6,978 million, with the operating profit margin declining from 11.0% to 10.3%. Ordinary profit fell 9.4% to ¥6,862 million, and profit attributable to owners of parent decreased 10.9% to ¥5,397 million, with earnings per share of ¥285.75. Gross profit decreased by ¥537 million, reflecting the negative impact of lower net sales in pressure sensors and higher input costs driven by rising raw material prices, resulting in a ¥674 million decrease in operating profit; SG&A increased by ¥136 million.

Item	FY03/2025 Results	FY03/2026 Results	YoY Change
Net sales (millions of yen)	69,544	67,691	(1,852) / (2.7%)
Operating profit (millions of yen)	7,653	6,978	(674) / (8.8%)
Operating profit margin	11.0%	10.3%	(0.7pt)
Ordinary profit (millions of yen)	7,575	6,862	(713) / (9.4%)
Ordinary profit margin	10.9%	10.1%	(0.8pt)
Profit attributable to owners of parent (millions of yen)	6,054	5,397	(657) / (10.9%)
Net margin	8.7%	8.0%	(0.7pt)

Segment Results

By segment, the Pressure Gauge business reported lower sales but higher operating profit year on year, supported by domestic infrastructure-related demand and solid performance at the U.S. subsidiary (Japan: demand for maintenance services in the process industry increased, while sales to industrial automation pneumatic equipment and semiconductor industries decreased). The Pressure Sensor business posted lower sales and profit, as sales decreased for the industrial machinery sector and for semiconductor applications that had performed strongly in the previous fiscal year, although the U.S. subsidiary saw revenue increase on strong industrial machinery sector performance. The Measurement & Control Equipment business reported higher sales and profit, driven by air leak testers for automotive and electronic components industries and pneumatic equipment/medical devices demand. The Die-cast business, primarily serving the automotive industry, recorded increases in both net sales and operating profit, supported by the recovery in automobile production volumes and returned to profitability. By region, sales declined in Asia (¥12,795 million to ¥9,081 million, -29.0%) and Japan (¥30,211 million to ¥29,660 million, -1.8%), while the U.S. (¥19,348 million to ¥20,788 million, +7.4%) and Europe (¥4,949 million to ¥5,739 million, +16.0%) remained relatively resilient.

Segment	Metric	FY03/2025 Results	FY03/2026 Results	YoY Change
Pressure Gauge	Net sales (millions of yen)	36,980 (53.2%)	36,470 (53.9%)	(510) / (1.4%)
Pressure Gauge	Operating profit (millions of yen)	2,933 (7.9%)	3,141 (8.6%)	208 / 7.1%
Pressure Sensor	Net sales (millions of yen)	21,366 (30.7%)	19,459 (28.7%)	(1,906) / (8.9%)
Pressure Sensor	Operating profit (millions of yen)	4,330 (20.2%)	2,957 (15.2%)	(1,373) / (31.7%)
Measurement & Control Equipment	Net sales (millions of yen)	4,043 (5.8%)	4,456 (6.6%)	413 / 10.2%
Measurement & Control Equipment	Operating profit (millions of yen)	299 (7.4%)	507 (11.4%)	208 / 69.6%
Die-cast	Net sales (millions of yen)	5,257 (7.6%)	5,488 (8.1%)	231 / 4.4%
Die-cast	Operating profit (millions of yen)	(52) (-1.0%)	233 (4.2%)	285 / —
Other	Net sales (millions of yen)	1,896 (2.7%)	1,816 (2.7%)	(80) / (4.2%)
Other	Operating profit (millions of yen)	136 (7.2%)	136 (7.5%)	0 / 0.0%
Total	Net sales (millions of yen)	69,544 (100.0%)	67,691 (100.0%)	(1,852) / (2.7%)
Total	Operating profit (millions of yen)	7,653 (11.0%)	6,978 (10.3%)	(674) / (8.8%)

FY03/2027 Forecast

For FY03/2027, the Company forecasts net sales of ¥67,500 million (down 0.3% year on year), operating profit of ¥6,800 million (down 2.6%), ordinary profit of ¥6,400 million (down 6.7%) and profit attributable to owners of parent of ¥4,300 million (down 20.3%). By segment, forecast operating profit for the Pressure Gauge business is expected to decrease to ¥2,890 million, while the Pressure Sensor, Measurement & Control Equipment and Die-cast businesses are all forecast to see operating profit increase.

Item	FY03/2026 Results	FY03/2027 Forecast	YoY Change
Net sales (millions of yen)	67,691	67,500	(191) / (0.3%)
Operating profit (millions of yen)	6,978	6,800	(178) / (2.6%)
Operating profit margin	10.3%	10.1%	(0.2pt)
Ordinary profit (millions of yen)	6,862	6,400	(462) / (6.7%)
Ordinary profit margin	10.1%	9.5%	(0.6pt)
Profit attributable to owners of parent (millions of yen)	5,397	4,300	(1,097) / (20.3%)
Net margin	8.0%	6.4%	(1.6pt)

Shareholder Returns

For FY03/2026, the Company raised both the interim and year-end dividends by ¥2 each, for an annual dividend per share of ¥52 (up ¥4 year on year). For FY03/2027, the Company plans an interim dividend of ¥30 and a year-end dividend of ¥30, for an annual dividend of ¥60 per share. Under the New Medium-Term Management Plan 2028, the Company has adopted progressive dividends as a fundamental policy, aiming to maintain or increase the dividend level of the previous fiscal year throughout the plan period, and will consider flexible investment based on capital structure, including share buybacks. Under its capital allocation plan for the three-year cumulative period FY03/2026–FY03/2028, the Company expects operating cash flow of approximately ¥15.0 billion, capital investment of approximately ¥4.0 billion, and flexible investment for enhancing corporate value, including share buybacks, of approximately ¥2.0–2.5 billion.

New Medium-Term Management Plan 2028

Under the 2nd Medium-Term Management Plan (FY2023–FY2025), net sales, operating profit and operating profit margin all fell short of the final-year targets (net sales target of ¥75.3 billion versus actual ¥67,691 million; operating profit margin target of 12.9% versus actual 10.3%), while ROE of 11.8% exceeded the 10%-or-above target. The Company has launched the New Medium-Term Management Plan 2028 (FY2026–FY2028) under the slogan “Turning Our Traditions into Power to Create New Value!”, targeting net sales of ¥75.5 billion and an operating profit margin of 12% by FY03/2029, pursuing five key priority initiatives: (1) new product development and strengthening existing businesses, (2) enhancing profitability, (3) strengthening the management foundation, (4) venturing into new frontiers, and (5) strengthening competitiveness in global markets. The plan targets net sales of ¥71,200 million and operating profit of ¥7,600 million for FY03/2028, and net sales of ¥75,500 million and operating profit of ¥9,000 million for FY03/2029, with an operating profit margin of 11% for FY03/2028 and 12% for FY03/2029, and ROE of 11% for FY03/2026.

Item	FY03/2026 Results	FY03/2027 Forecast	FY03/2028 Plan	FY03/2029 Plan
Net sales (millions of yen)	67,691	67,500	71,200	75,500
Operating profit (millions of yen)	6,978	6,800	7,600	9,000
Operating profit margin	10%	10%	11%	12%

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.