Noritsu Koki (7744): FY2025 Results Summary — Audio Equipment Growth Offsets Teibow Weakness Ahead of SENQCIA Consolidation

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Noritsu Koki Co., Ltd. (7744) reported consolidated results for the fiscal year ended December 31, 2025 (FY25) that came in higher than its November 14 revised forecasts, as revenue and operating profit increased on growth in the Audio Equipment/Peripherals segment. Net profit decreased year on year due to the drop-out of a prior-year gain on the sale of shares. By company, revenue and profit declined at the Teibow group, while AlphaTheta and JLab both posted higher revenue and profit. For FY26, the company forecasts sharply higher revenue and profit, reflecting the consolidation of newly acquired SENQCIA CORPORATION from February 2026.

Consolidated Results (Full-Year Actual)

Consolidated revenue and operating profit increased on growth in the Audio Equipment/Peripherals segment, while net profit decreased due to the drop-out of a ¥1.9 billion prior-year gain on the sale of shares.

Item	FY2025	FY2024	YoY Change
Revenue (millions of yen)	119,223	106,539	+12,687 (+11.9%)
Operating EBITDA (millions of yen)	25,726	24,283	+1,442 (+5.9%)
Operating profit (millions of yen)	20,815	19,971	+843 (+4.2%)
Operating profit ratio	17.5%	18.7%	-1.2pt
Net profit (millions of yen)	15,639	16,120	-481 (-3.0%)

Segment Results

Revenue and profit declined at the Teibow group (Parts/Materials) due to continued customer production adjustments in the writing instruments business and soaring raw material and personnel costs, while AlphaTheta and JLab (both Audio Equipment/Peripherals) posted higher revenue and profit on continued firm demand.

Segment	Metric	FY2025	FY2024
Teibow group (Parts/Materials)	Revenue (millions of yen)	11,744	11,975
Teibow group (Parts/Materials)	Operating EBITDA (millions of yen)	2,778	3,270
AlphaTheta (Audio Equipment/Peripherals)	Revenue (millions of yen)	69,879	62,588
AlphaTheta (Audio Equipment/Peripherals)	Operating EBITDA (millions of yen)	19,203	17,630
JLab (Audio Equipment/Peripherals)	Revenue (millions of yen)	37,599	31,975
JLab (Audio Equipment/Peripherals)	Operating EBITDA (millions of yen)	4,963	4,394
Consolidated total	Revenue (millions of yen)	119,223	106,539
Consolidated total	Operating EBITDA (millions of yen)	25,726	24,283

FY2026 Forecast

For FY26, Noritsu Koki forecasts sharply higher revenue, operating EBITDA, operating profit and net profit, reflecting the consolidation of new subsidiary SENQCIA CORPORATION from February 2026 as well as higher revenue and profit at Teibow, Hamamatsu Metal Works, AlphaTheta and JLab. Net profit is forecast to increase despite the drop-out of prior-year foreign exchange valuation gains and the impact of higher interest expenses.

Item	FY2026 Forecast	FY2025 (Actual)	YoY Change
Revenue (millions of yen)	167,600	119,223	+48,376 (+40.6%)
Operating EBITDA (millions of yen)	35,500	25,726	+9,773 (+38.0%)
Operating profit (millions of yen)	26,000	20,815	+5,184 (+24.9%)
Operating profit ratio	15.5%	17.5%	-1.9pt
Net profit (millions of yen)	16,800	15,639	+1,161 (+7.4%)

Shareholder Returns

Noritsu Koki carried out a 3-for-1 stock split of its common stock effective July 1, 2025. On a split-adjusted basis, the annual dividend was ¥60 for FY24 and ¥74 for FY25 (the FY25 dividend is subject to a resolution at the March 26, 2026 Ordinary General Meeting of Shareholders), for payout ratios of 40% and 50% and a DOE of 3.0% and 3.5%, respectively. Combined with ¥2.0 billion of treasury stock repurchases in FY25, the total return ratio was 63%. For FY26, the company forecasts an annual dividend of ¥75 (¥37 interim and ¥38 year-end) at a DOE of 3.5%, and has determined a treasury stock repurchase of up to 1,600,000 shares (1.49% of shares outstanding excluding treasury stock) for a total cost of up to ¥3.0 billion, during the period from February 24, 2026 to June 30, 2026, with the repurchased shares to be cancelled on July 1, 2026. Combined, this is expected to bring the FY26 total return ratio to 66%, with a payout ratio of 48%.

Item	FY2024	FY2025	FY2026 Forecast
Annual dividend per share	¥60	¥74	¥75
Payout ratio	40%	50%	48%
DOE	3.0%	3.5%	3.5%
Treasury stock repurchase	—	¥2.0 billion	¥3.0 billion
Total return ratio	40%	63%	66%

SENQCIA Acquisition and Medium-Term Plan FY30

Noritsu Koki will consolidate newly acquired SENQCIA CORPORATION, a building materials and equipment manufacturer, from February 2026, positioning the deal as an investment to strengthen the Parts/Materials segment under the Medium-Term Management Plan FY30 (MTMP FY30). The company calculates SENQCIA’s enterprise value at approximately ¥80.0 billion (an EBITDA multiple of 8.7x), to be funded by ¥30.0 billion of own capital and ¥50.0 billion of new borrowings; SENQCIA reported net sales of ¥35,413 million and adjusted EBITDA of ¥9.2 billion for the fiscal year ended March 31, 2025. Goodwill and intangible assets are expected to increase by approximately ¥68.0 billion following the acquisition, and the company estimates its net debt to operating EBITDA ratio will be 0.1 after the acquisition. Separately, the company has begun considering options, including a possible business transfer, for the Teibow pen nibs business as part of its ongoing portfolio review, though it states that no concrete decision has yet been made. Under MTMP FY30, the company’s reference values for FY30 are revenue of ¥190.0 billion or more, operating EBITDA of ¥38.0 billion or more, operating profit of ¥28.5 billion or more, and an operating EBITDA margin of 20% or more, alongside quantitative targets over the plan period of a revenue CAGR of 10% or more, ROE (FY30) of 10% or more, an operating profit margin of 15% or more, and a total payout ratio of 50% or more.

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