Kioxia Holdings (285A): FY2025 Results Summary — Record Revenue and Profit on AI-Driven NAND Demand

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Kioxia Holdings Corporation reported record-high revenue and profits for the second consecutive year in FY2025 (the fiscal year ended March 31, 2026). Consolidated revenue rose 37.0% year on year to 2,337.6 billion yen, and Non-GAAP operating profit nearly doubled to 876.2 billion yen, which the company attributes to strong results driven by AI demand. The fourth quarter exceeded the top end of guidance across the board, with quarterly revenue, gross profit, operating profit, and free cash flow all reaching record highs. The company also reported a significant improvement in financial strength, with the net debt-to-equity ratio falling to 39% from 126% a year earlier.

Consolidated Results (Full-Year Actual)

For the fiscal year ended March 31, 2026, revenue was 2,337.6 billion yen (up 37.0% year on year), including 193.4 billion yen of JV-related sales. Non-GAAP operating profit was 876.2 billion yen (up 93.4%, margin 37.5%), Non-GAAP net income was 559.6 billion yen (up 110.4%, margin 23.9%), and Non-GAAP EBITDA was 1,187.9 billion yen (up 55.5%, margin 50.8%). Adjusted Non-GAAP gross profit was 1,103.2 billion yen. The average exchange rate was 150 yen to the U.S. dollar, an appreciation of 3 yen versus FY2024.

Item (Bn Yen)	FY2025	FY2024	YoY
Revenue	2,337.6	1,706.5	+37.0%
Non-GAAP Operating Profit	876.2	453.0	+93.4%
Non-GAAP Net Income	559.6	266.0	+110.4%
Non-GAAP EBITDA	1,187.9	764.1	+55.5%
Non-GAAP Earnings Per Share (Yen)	1,033.58	507.89	+525.69
Exchange Rate (USD/JPY)	150	153	Appreciated by 3 yen

Sales by Application

Kioxia discloses sales by application rather than by reportable segment. In the fourth quarter, all applications achieved record sales revenue, primarily driven by ASP strength; Q4 revenue of 1,002.9 billion yen nearly doubled quarter on quarter. In SSD & Storage, strong AI server demand drove record-high data center and enterprise SSD shipments, with ASP expansion contributing to record revenue growth. In Smart Devices, sales prices rose significantly, reaching record-high sales, while volume was as expected (a decrease in the 10% range).

Application (Bn Yen)	FY2025	FY2024	Share of FY2025 Revenue
SSD & Storage	1,362.6	991.1	58%
Smart Devices	760.0	501.1	33%
Others	215.0	214.2	9%
Total Revenue	2,337.6	1,706.5	—

Fourth-Quarter Results

In the three months ended March 31, 2026, results exceeded the top end of guidance across the board and set new record highs, with revenue roughly doubling and operating profit roughly quadrupling quarter on quarter. Quarterly revenue was 1,002.9 billion yen (up 84.5% quarter on quarter and 188.9% year on year), Non-GAAP operating profit was 599.1 billion yen (margin 59.7%), Non-GAAP net income was 409.9 billion yen (margin 40.9%), and Non-GAAP EBITDA was 675.3 billion yen (margin 67.3%). Blended ASP on a U.S. dollar basis more than doubled quarter on quarter, while bit shipments declined around 10%.

Item (Bn Yen)	Q4 Results	Q4 Guidance (Announced Feb. 12)	Q3 Results
Revenue	1,002.9	845.0 ~ 935.0	543.6
Non-GAAP Operating Profit	599.1	440.0 ~ 530.0	144.7
Non-GAAP Net Income	409.9	310.0 ~ 370.0	89.5
Non-GAAP EBITDA	675.3	–	222.0
Non-GAAP Earnings Per Share (Yen)	751.78	569.36 ~ 679.56	165.28

Cash Flow and Balance Sheet

Annual operating cash flow reached an all-time high of 616.5 billion yen, and annual free cash flow reached a record 395.0 billion yen. Capital expenditure was 283.7 billion yen, as initially planned, focused on 8th- and 10th-generation BiCS FLASH. Record FY2025 earnings further strengthened the balance sheet, driving a doubling of equity to 1,399.1 billion yen from 737.7 billion yen a year earlier. The net debt-to-equity ratio improved to 39% at fiscal year-end from 126% at the end of FY2024, and the company expects a net cash position by the end of FY2026 Q1. During the year, Kioxia implemented refinancing measures including senior loan refinancing, a debut corporate bond issuance, and redemption of preferred shares.

FY2026 Q1 Guidance

The presentation provides guidance for the first quarter of FY2026 (the three months ended June 30, 2026) rather than a full-year forecast. Kioxia guides for revenue of 1,750.0 billion yen (up 74.5% quarter on quarter), Non-GAAP operating profit of 1,300.0 billion yen (up 117.0%, margin 74.3%), and Non-GAAP net income of 870.0 billion yen (up 112.2%, margin 49.7%), at an assumed exchange rate of 159 yen to the U.S. dollar. Quarterly FX sensitivity to a 1 yen move against the U.S. dollar is 10.0 billion yen of revenue and 9.0 billion yen of operating profit.

Item (Bn Yen)	FY2026 Q1 Guidance	FY2025 Q4 Results	QoQ
Revenue	1,750.0	1,002.9	+74.5%
Non-GAAP Operating Profit	1,300.0	599.1	+117.0%
Non-GAAP Net Income	870.0	409.9	+112.2%
Non-GAAP Earnings Per Share (Yen)	1,593.15	751.78	+841.37
Exchange Rate (USD/JPY)	159	155	–

Shareholder Returns

The presentation does not disclose a dividend figure. Under its FY2026 strategic priorities, the company states that it is evaluating a range of initiatives across growth investment, capital efficiency, shareholder returns and others. It also plans early repayment of a 400 billion yen senior loan in Q1 of FY2026 to strengthen its financial structure, alongside gross capital expenditure of 450 billion yen for the year.

Topics: First Year After Listing and FY2026 Strategic Priorities

Summarizing its first year after listing, Kioxia notes that it achieved the Tokyo Stock Exchange Prime Market listing criteria through a reduction in the large shareholder ratio, and was included in the MSCI Standard index (announced in November 2025) and the Nikkei 225 (announced in March 2026). The company states it ranked first in stock price growth rate in 2025 among MSCI World Index constituents and among TOPIX constituents. On the business side, it expanded 8th-generation BiCS FLASH production, commenced operations at the K2 facility in Kitakami, and extended its joint venture with conversion to a compensation model. For FY2026, strategic priorities include launching 10th-generation BiCS FLASH, deepening collaboration with key AI customers, GPU manufacturers, and ecosystem partners, and meeting growing AI demand with appropriate capital investment.

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.