Citizen Watch (7762): FY2025 Results Summary — Record Profit Growth Led by Watches and Machine Tools

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CITIZEN WATCH CO., LTD. reported strong growth for the fiscal year ended March 31, 2026 (FY2025), with consolidated net sales rising 9.4% year on year to 346.8 billion yen and operating profit up 46.9% to 30.2 billion yen. Both the Watches and Machine Tools segments posted higher sales and profit, supported by strong performance of the CITIZEN and BULOVA brands in North America and a gradual recovery in Machine Tools orders overseas. Profit attributable to owners of parent increased 30.3% to 31.1 billion yen. For FY2026, the Company forecasts further growth in net sales and operating profit and plans to raise its annual dividend to 50 yen per share.

Consolidated Results (Full-Year Actual)

For FY2025 (April 2025 to March 2026), CITIZEN WATCH CO., LTD. recorded consolidated net sales of 346.8 billion yen, up 9.4% year on year, and operating profit of 30.2 billion yen, up 46.9%. The operating margin improved to 8.7% from 6.5% in FY2024. Ordinary profit rose 67.0% to 38.4 billion yen, and profit attributable to owners of parent rose 30.3% to 31.1 billion yen. The average exchange rate for the year was 150 yen per US dollar and 174 yen per euro, compared with 153 yen per US dollar and 164 yen per euro in FY2024.

Item	FY2025	FY2024	YoY Change (Amount)	YoY Change (%)
Net sales	346.8 billion yen	316.8 billion yen	+29.9 billion yen	+9.4%
Operating profit	30.2 billion yen	20.5 billion yen	+9.6 billion yen	+46.9%
Operating margin	8.7%	6.5%	–	–
Ordinary profit	38.4 billion yen	23.0 billion yen	+15.4 billion yen	+67.0%
Profit attributable to owners of parent	31.1 billion yen	23.8 billion yen	+7.2 billion yen	+30.3%

Segment Results

All three business segments posted higher sales and profit in FY2025. In the Watches segment, performance of both the CITIZEN and BULOVA brands was strong, particularly in North America, aided by growth of the Company’s in-house e-commerce business. In the Machine Tools segment, operating profit increased mainly due to higher net sales in overseas markets, even as automotive-related demand lacked momentum. The Devices and Components segment also increased sales and profit.

Segment	Metric	FY2025	FY2024
Watches	Net sales	197.0 billion yen	179.2 billion yen
Watches	Operating profit (margin)	25.0 billion yen (12.7%)	18.1 billion yen (10.1%)
Machine Tools	Net sales	86.2 billion yen	74.3 billion yen
Machine Tools	Operating profit (margin)	7.7 billion yen (9.0%)	5.6 billion yen (7.6%)
Devices and Components	Net sales	63.4 billion yen	63.3 billion yen
Devices and Components	Operating profit (margin)	3.7 billion yen (5.9%)	2.9 billion yen (4.7%)
Consolidated Total	Net sales	346.8 billion yen	316.8 billion yen
Consolidated Total	Operating profit (margin)	30.2 billion yen (8.7%)	20.5 billion yen (6.5%)

FY2026 Forecast

For FY2026 (April 2026 to March 2027), the Company forecasts consolidated net sales of 362.0 billion yen, up 4.4% year on year, and operating profit of 34.5 billion yen, up 14.0%, with the operating margin improving further to 9.5%. Ordinary profit is forecast to decrease 2.5% to 37.5 billion yen, and profit attributable to owners of parent is forecast to decrease 11.6% to 27.5 billion yen. The forecast assumes exchange rates of 150 yen per US dollar and 175 yen per euro for the full year. On a consolidated basis, the Company expects to achieve the net sales and operating margin targets of Medium-term Management Plan 2027 one year ahead of schedule.

Item	FY2026 Forecast	FY2025 (Actual)
Net sales	362.0 billion yen	346.8 billion yen
Operating profit	34.5 billion yen	30.2 billion yen
Operating margin	9.5%	8.7%
Ordinary profit	37.5 billion yen	38.4 billion yen
Profit attributable to owners of parent	27.5 billion yen	31.1 billion yen

Shareholder Returns

In line with the shareholder return policy under Medium-term Management Plan 2027, launched in FY2025, the Company plans to increase its annual dividend per share by 3 yen year on year to 50 yen for FY2026 (25.00 yen at the second-quarter end and 25.00 yen at fiscal year-end), compared with 47 yen for FY2025 (23.50 yen and 23.50 yen). The Company’s shareholder return policy for FY2025-2027 aims for DOE (dividend on equity) of 5.0% or more, with emphasis on continued payment of stable dividends and flexible acquisition of treasury stock depending on business performance, capital composition, investment plans, stock price and other market conditions. DOE for FY2025 was 5.4%, and ROE for FY2025 was 11.3%, both exceeding the Medium-term Management Plan 2027 targets of DOE 5.0% or more and ROE 9.0% or more.

Medium-Term Plan Progress

Under Medium-term Management Plan 2027, the Watches segment achieved its net sales and operating margin targets of 190.0 billion yen and 12.0% two years ahead of schedule in FY2025. The global sub-brand sales ratio reached 26% in FY2025 (Medium-term Management Plan target: 35%), and the direct-to-consumer e-commerce sales ratio in North America increased to just over 10% in FY2025 (FY2027 target: 12%). In the Machine Tools segment, the Company is targeting net sales of 100.0 billion yen and an operating margin of 15.0%, and plans to establish a new sales subsidiary in India, CITIZEN MACHINERY (INDIA) PVT. LTD., with capital of approximately 1.0 billion yen, planned for October 2026, to strengthen its regional sales and service structure.

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.