Seiko Group Corporation (8050): FY2025 Results Summary — Record Profit Driven by Watches and Global Brand Growth

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

Seiko Group Corporation reported record consolidated results for the fiscal year ended March 31, 2026 (FY2025), with net sales of ¥335.7 billion, up 10.2% year on year, and operating profit of ¥30.9 billion, up 45.4%. Profit attributable to owners of parent rose 65.1% to ¥22.0 billion. Growth was led by the Watches Business, where Grand Seiko and the Seiko Global Brands (including Seiko Prospex, Seiko Presage and Seiko 5 Sports) achieved strong sales gains in Japan and overseas, particularly in the United States. For FY2026, the company forecasts further increases in net sales and operating profit and plans to raise its annual dividend to ¥90.00 per share.

Consolidated Results (Full-Year Actual)

Net sales increased ¥30.9 billion year on year on higher sales across the Watches, Devices Solutions and Systems Solutions businesses. Operating profit rose ¥9.6 billion, reflecting the impact of higher net sales (+¥14.3 billion) and an improved gross profit margin (+¥3.8 billion), partly offset by higher SG&A expenses including increased advertising and promotion spending (-¥8.5 billion). Ordinary profit increased ¥12.3 billion, aided by foreign exchange gains and losses of +¥1.8 billion. The average USD/JPY rate for the year was ¥150.8 (vs. ¥152.6 in FY2024) and the average EUR/JPY rate was ¥174.8 (vs. ¥163.8).

Item	FY2025 Actual	FY2024 Actual	Change
Net Sales	¥335.7 billion	¥304.7 billion	+¥30.9 billion (+10.2%)
Gross Profit	¥155.2 billion	¥137.1 billion	+¥18.1 billion (+13.2%)
Gross Profit Margin	46.2%	45.0%	+1.3pt
Operating Profit	¥30.9 billion	¥21.2 billion	+¥9.6 billion (+45.4%)
Operating Profit Margin	9.2%	7.0%	+2.2pt
Ordinary Profit	¥33.1 billion	¥20.8 billion	+¥12.3 billion (+59.5%)
Profit Attributable to Owners of Parent	¥22.0 billion	¥13.3 billion	+¥8.7 billion (+65.1%)
Net Margin	6.5%	4.4%	+2.2pt

Segment Results

By segment, the Emotional Value Solutions (EVS) domain — comprising the Watches Business — recorded significant increases in both net sales and operating profit, led by the Watches Business, which grew net sales by ¥27.2 billion and operating profit by ¥6.3 billion. The Devices Solutions (DS) domain continued its recovery, increasing both net sales and operating profit despite the impact of rising silver prices. The Systems Solutions (SS) domain achieved steady growth, with subsidiary SEIKO Solutions Inc. (SSOL) recording year-on-year increases in both net sales and operating profit for the 40th consecutive quarter.

Segment	Metric	FY2025 Actual	FY2024 Actual
Watches	Net Sales (¥ billion)	203.1	176.0
Watches	Operating Profit (¥ billion)	27.0	20.6
Emotional Value Solutions (Sub Total)	Net Sales (¥ billion)	220.4	199.2
Emotional Value Solutions (Sub Total)	Operating Profit (¥ billion)	28.6	22.2
Devices Solutions	Net Sales (¥ billion)	65.0	60.0
Devices Solutions	Operating Profit (¥ billion)	3.8	2.8
Systems Solutions	Net Sales (¥ billion)	57.2	52.8
Systems Solutions	Operating Profit (¥ billion)	5.5	5.2
Cons. Total	Net Sales (¥ billion)	335.7	304.7
Cons. Total	Operating Profit (¥ billion)	30.9	21.2

FY2026 Forecast

Seiko Group forecasts net sales of ¥358.0 billion (+6.6% YoY) and operating profit of ¥33.5 billion (+8.5% YoY) for FY2026, based on assumed exchange rates of JPY 150.0/USD and JPY 170.0/EUR. By segment, net sales and operating profit are forecast to increase across all three domains: Emotional Value Solutions (Watches Business net sales of ¥212.0 billion, operating profit of ¥29.0 billion), Devices Solutions (net sales ¥73.5 billion, operating profit ¥4.3 billion) and Systems Solutions (net sales ¥61.5 billion, operating profit ¥6.6 billion).

Item	FY2026 Forecast (May 13)	FY2025 Actual	Variance vs. FY2025
Net Sales	¥358.0 billion	¥335.7 billion	+¥22.3 billion
Operating Profit	¥33.5 billion	¥30.9 billion	+¥2.6 billion
Operating Profit Margin	9.4%	9.2%	+0.2pt
Ordinary Profit	¥34.0 billion	¥33.1 billion	+¥0.9 billion
Ordinary Profit Margin	9.5%	9.9%	-0.4pt
Profit Attributable to Owners of Parent	¥23.0 billion	¥22.0 billion	+¥1.0 billion
Net Margin	6.4%	6.5%	-0.1pt

Shareholder Returns

Seiko Group plans to pay an annual dividend of ¥90.00 per share for FY2026, up ¥7.5 year on year, based on its policy of maintaining a consolidated dividend payout ratio of over 30.0%. The FY2025 annual dividend was ¥82.50 per share, with a payout ratio of 30.7%. The Company conducted a two-for-one stock split of its common stock effective April 1, 2026; the dividend figures above reflect the stock split, and pre-split reference figures are shown in parentheses in the table below.

Fiscal Year	Dividend per Share (Yen, post-split)	Dividend Payout Ratio
FY20	18.75 (37.50 pre-split)	44.5%
FY21	25.00 (50.00 pre-split)	32.1%
FY22	37.50 (75.00 pre-split)	61.5%
FY23	40.00 (80.00 pre-split)	32.7%
FY24	50.00 (100.00 pre-split)	30.7%
FY25	82.50 (165.00 pre-split)	30.7%
FY26 Forecast	90.00 (180.00 pre-split)	32.0%

Medium-Term Plan / Topics

Seiko Group is in the final year (FY2026) of its 8th Mid-Term Management Plan, SMILE145 (FY2022-FY2026). The FY2026 operating profit forecast of ¥33.5 billion already exceeds the plan’s original final-year target of ¥25.0 billion, and the company also forecasts a gross profit margin of 46.8% (in line with the plan’s target), ROIC of 9-10% (above the over-6.5% target) and ROE of 12-13% (above the over-9.0% target). As part of the Watches Business’s Global Brands (GB) strategy, the company has entered a global partnership with Shohei Ohtani for Grand Seiko, including a large-scale advertising campaign in Times Square, New York, aimed at expanding brand awareness among high-net-worth audiences worldwide.

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.