A&D HOLON Holdings (7745): FY2025 Results Summary — Sales and Profit Rise, but Compliance-Related Losses Cut Net Income

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A&D HOLON Holdings reported consolidated net sales of ¥69,326 million for FY2025 (fiscal year ended March 31, 2026), up 3.3% year on year, and operating profit of ¥9,209 million, up 4.5% year on year, though both fell slightly short of the company’s initial full-year forecast. Net profit attributable to parent company shareholders declined 8.4% year on year to ¥5,923 million after the company recorded extraordinary losses tied to corrective actions for a Measurement Act violation at subsidiary A&D Company, Limited and inappropriate expenditures at a South Korean subsidiary. The company raised its FY2025 year-end dividend by ¥5 to ¥30, lifting the annual dividend to ¥55.

Consolidated Results (Full-Year Actual)

Net sales achieved 99.0% of the initial forecast and operating profit achieved 96.9%, while ordinary profit exceeded its forecast at 100.7% achievement. Net profit came in at 91.1% of the initial forecast due to ¥806 million in extraordinary losses, up from ¥77 million in FY2024. The extraordinary losses for FY2025 comprised ¥552 million in provision expense related to Measurement Act corrective actions and ¥243 million in losses from inappropriate expenditures at a consolidated subsidiary in South Korea. Return on equity was 12.9%, down 3.2 points year on year.

Item (Unit: million yen)	FY2025	FY2024	Change (YoY)
Net sales	69,326	67,083	+2,243 (+3.3%)
Cost of sales	37,875	36,880	+995 (+2.7%)
Gross profit	31,451	30,203	+1,247 (+4.1%)
SG&A expenses	22,241	21,390	+851 (+4.0%)
Operating profit	9,209	8,813	+396 (+4.5%)
Ordinary profit	9,470	8,954	+515 (+5.8%)
Extraordinary losses	806	77	+729
Net profit attributable to parent company shareholders	5,923	6,468	(545) (-8.4%)
Basic earnings per share (yen)	216.33	235.63	(19.3)
Return on equity	12.9%	16.1%	(3.2 points)

Segment Results

By business segment, the Semiconductor-related Business saw sales and profit decline as demand corrected after strong growth through FY2024. The Measuring and Weighing Equipment Business achieved higher sales and profit, supported by stable earnings in Japan even as conditions in the United States remained challenging due to EV market changes and tariffs. The Medical and Healthcare Equipment Business posted higher sales on strong overseas demand and foreign exchange effects, while operating profit was broadly level year on year as the impact of US tariffs was offset by price optimization and productivity improvements. By region, Japan accounted for 51.5% of FY2025 net sales (¥35.7 billion), followed by the Americas at 23.3% (¥16.1 billion), Europe at 16.2% (¥11.2 billion), and Asia and Oceania at 9.1% (¥6.3 billion).

Segment	Metric (million yen)	FY2025	FY2024	YoY
Semiconductor-related Business	Net sales	11,114	12,295	-9.6%
Semiconductor-related Business	Operating profit	3,628	4,124	-12.0%
Measuring and Weighing Equipment Business	Net sales	31,545	30,665	+2.9%
Measuring and Weighing Equipment Business	Operating profit	3,387	2,704	+25.2%
Medical and Healthcare Equipment Business	Net sales	26,667	24,122	+10.5%
Medical and Healthcare Equipment Business	Operating profit	4,009	4,106	-2.4%

FY2026 Forecast

For FY2026 (fiscal year ending March 31, 2027), the company forecasts net sales of ¥68,000 million (down 1.9% year on year) and operating profit of ¥7,000 million (down 24.0% year on year), reflecting a temporary adjustment in semiconductor investment in the Chinese market, US EV market trends, and tariff impacts. By segment, the Semiconductor-related Business is forecast to post net sales of ¥8,500 million (down 23.5%) and operating profit of ¥1,900 million (down 47.6%); the Measuring and Weighing Equipment Business is forecast to post net sales of ¥32,300 million (up 2.4%) and operating profit of ¥3,200 million (down 5.5%); and the Medical and Healthcare Equipment Business is forecast to post net sales of ¥27,200 million (up 2.0%) and operating profit of ¥4,300 million (up 7.3%). The forecast assumes exchange rates of USD1 = JPY150.00 and RUB1 = JPY1.90, and does not incorporate the impact of the situation in the Middle East, which the company says is difficult to estimate at this time.

Item (Unit: million yen)	FY2025 (Actual)	FY2026 (Forecast)	Change
Net sales	69,326	68,000	-1.9%
Operating profit	9,209	7,000	-24.0%
Ordinary profit	9,470	6,900	-27.1%
Net profit attributable to parent company shareholders	5,923	4,500	-24.0%
Basic earnings per share (yen)	216.33	164.31	–

Shareholder Returns

The FY2025 year-end dividend was increased by ¥5 to ¥30 per share, bringing the annual dividend to ¥55 (interim dividend ¥25, year-end dividend ¥30). For FY2026, the company forecasts an annual dividend of ¥60 per share (interim ¥30, year-end ¥30), an increase of ¥5 from FY2025, with a forecast dividend payout ratio of 36.5%.

Medium-Term Business Plan Revision

The company revised the financial targets of its Medium-term Business Plan (FY2025 to FY2027), while maintaining the plan’s theme of “Redefining Business Value and Rebuilding Foundations,” citing changes in Chinese market investment trends, slowing growth in the EV-related market, the impact of US tariffs, and a revised assumed exchange rate of JPY150 per USD (from JPY140). FY2025 net sales came in at ¥693 billion against an initial plan of ¥700 billion, and operating profit was ¥92 billion against an initial plan of ¥95 billion. For FY2026, the revised plan calls for net sales of ¥680 billion (down from an initial plan of ¥745 billion) and operating profit of ¥70 billion (down from an initial plan of ¥104 billion). For FY2027, the revised plan calls for net sales of ¥755 billion (down from an initial plan of ¥800 billion) and operating profit of ¥99 billion (down from an initial plan of ¥117 billion).

Item (Unit: billion yen)	FY2025 Initial Plan	FY2025 Actual	FY2026 Initial Plan	FY2026 Revised Plan	FY2027 Initial Plan	FY2027 Revised Plan
Net sales	700	693	745	680	800	755
Operating profit	95	92	104	70	117	99
Operating profit margin	13.6%	13.3%	14.0%	10.3%	14.6%	13.1%

Topics: Governance and Compliance Matters

As previously announced on September 30, 2025, consolidated subsidiary A&D Company, Limited was found to have violated the Measurement Act in the repair of specified measuring instruments. As of March 31, 2026, corrective progress on affected units stood at 1,741 out of 5,109 units (a progress rate of 34.1%), with 160 affected units whose users have not been identified. The company established a dedicated Corrective Action Task Force Department on December 1, 2025 and expects corrective action costs not to exceed the ¥552 million recorded as an extraordinary loss in FY2025, with some costs expected to be incurred after March 2027 as corrective actions are expected to be completed by the end of October 2027. Separately, the company disclosed on May 13, 2026 that an employee of consolidated subsidiary A&D SCALES CO., LTD. in South Korea had, between February 2026 and April 2026, withdrawn funds from the subsidiary’s bank accounts without required approvals and used them for personal purposes, totaling approximately KRW 2.5 billion (approximately ¥270 million); of this, ¥243 million relating to losses incurred through March 31, 2026 was reflected as an extraordinary loss in the FY2025 consolidated results.

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.