NHK Spring (5991): FY2025 Results Summary — Record Sales of 816.8 Billion Yen, Profit Down on Impairments; FY2026 Operating Profit Seen Up 28.9%

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NHK Spring Co., Ltd. (TSE Prime: 5991) released its “Results for the Fiscal Year Ended March 2026 & Forecast for the Fiscal Year Ending March 2027” presentation on May 11, 2026 (presented by Executive Corporate Officer & CFO Osamu Ikejiri). In the presentation, FY2025 refers to the fiscal year ended March 31, 2026 and FY2026 to the fiscal year ending March 31, 2027. For FY2025, consolidated net sales were 8,168 (100 million yen), up 152 from 8,016 in FY2024, while operating profit fell 64 to 457 and profit attributable to owners of parent fell 203 to 278. For FY2026, the company forecasts net sales of 8,600, operating profit of 590 (+28.9%) and profit attributable to owners of parent of 450 (+61.5%), and plans an annual dividend of 69.0 yen (FY2025: 66.0 yen).

Consolidated Results (Full-Year Actual)

The company describes the automotive-related market as one in which production volume decreased year-on-year both in Japan and overseas, mainly for Japanese automakers, while in the information and communications-related market the global production volume of HDDs increased year-on-year and total demand for its main product, HDD suspension, also increased. Net sales of 8,168 (100 million yen) were 152 above FY2024 and 168 above the November forecast of 8,000. Operating profit of 457 was 64 below FY2024 (521) and 13 below the November forecast (470), with the operating margin at 5.6% (FY2024: 6.5%). Ordinary profit was 521 (FY2024: 579) and profit attributable to owners of parent was 278 (FY2024: 481), 122 below the November forecast of 400. Extraordinary profits/losses were -18 (FY2024: 16). EPS was 137.46 yen (FY2024: 224.73 yen) and ROE was 6.6% (FY2024: 11.9%). The average US$ rate was 151.0 yen (FY2024: 152.5 yen) and the average Thai baht rate was 4.6 yen (FY2024: 4.3 yen).

Item (100 million yen)	FY2024 Results	FY2025 November forecast	FY2025 Results	Vs. FY2024 results	Vs. November forecast
Net Sales	8,016	8,000	8,168	152	168
Operating Profit	521	470	457	-64	-13
Operating Profit Ratio	6.5%	5.9%	5.6%	-0.9%	-0.3%
Ordinary Profit	579	530	521	-58	-9
Ordinary Profit Ratio	7.2%	6.6%	6.4%	-0.8%	-0.2%
Profit Attributable to Owners of Parent	481	400	278	-203	-122
Extraordinary profits/losses	16	–	-18	-35	-18
EPS (yen)	224.73	196.15	137.46	-87.27	-58.69
ROE	11.9%	9.6%	6.6%	-5.2%	-3.0%
Average Rate US$ (yen)	152.5	148.2	151.0	-1.5	2.8
Average Rate Thai Baht (yen)	4.3	4.5	4.6	0.3	0.1

Non-operating profits/losses totaled 64 (100 million yen) in FY2025 versus 57 in FY2024. Exchange rate profits/losses in Japan were 31 (FY2024: -8), as foreign exchange gains were recorded at business sites in Japan due to the rapid depreciation of the yen against the dollar toward the end of March, while exchange rate profits/losses in Asia, America & Europe & Others were -34 (FY2024: -2), as companies with a December fiscal year-end recorded foreign exchange losses as the dollar weakened toward the end of December. Dividend income was 34 (FY2024: 31) and equity in profits/losses of affiliates was 9 (FY2024: 23).

Extraordinary profits totaled 96 (FY2024: 23), including a gain on sale of investment securities of 52, a gain on return of retirement benefit trust of 38 and a gain on sale of investments in capital of subsidiaries and affiliated companies of 5. Extraordinary losses totaled 115 (FY2024: 7), of which impairment losses on non-current assets were 98 (FY2024: 4); the breakdown of impairment losses includes 40 for Industrial Machinery & Other Operations in NHK SPRING, 27 for subsidiaries in Malaysia, 12 for Precision Springs & Components in NHK SPRING, 12 for subsidiaries in Mexico and 5 for subsidiaries in Hungary. The company also recorded a loss on valuation of shares of subsidiaries and affiliated companies of 2, a loss on valuation of investments in capital of subsidiaries and affiliated companies of 5, and a provision of allowance for loss on liquidation of subsidiaries and affiliated companies of 8.

Segment Results

By business segment, Disk Drive Suspension posted net sales of 1,267 (100 million yen), up 152 from FY2024, as demand for high-capacity HDDs for data centers continued and the sales volume of HDD suspensions increased year-on-year; however, operating profit of 260 was 6 below FY2024 due to the impact of transitioning from prototype to mass-production pricing and increased future investment burdens, including in human capital and DX. Automotive Seating net sales fell 113 to 2,925 and operating profit fell 31 to 80, reflecting volume declines in Japan and Thailand and fewer selling price improvements and market-driven cost recoveries, while in North America improved selling prices limited losses to the previous year’s level despite one-time expenses and additional tariffs. Automotive Suspension Spring net sales were 1,674 (-16) and operating profit 7 (+2), with profits decreasing in Japan on lower exports but increasing in Thailand and improving in the U.S. and Europe despite tariff burdens. Precision Springs & Components net sales rose 36 to 1,056 with operating profit down 6 to 36, and Industrial Machinery and Equipment, and Other Operations net sales rose 93 to 1,245 with operating profit down 22 to 72, as semiconductor process component volume increased year-on-year while profits were affected by increased future investment burdens including human capital and DX.

Business Segment (100 million yen)	Metric	FY2024 Results	FY2025 Results	Vs. FY2024
Automotive Suspension Spring	Net Sales	1,691	1,674	-16
Automotive Suspension Spring	Operating Profit	4	7	2
Automotive Seating	Net Sales	3,039	2,925	-113
Automotive Seating	Operating Profit	112	80	-31
Precision Springs & Components	Net Sales	1,019	1,056	36
Precision Springs & Components	Operating Profit	42	36	-6
Disk Drive Suspension	Net Sales	1,115	1,267	152
Disk Drive Suspension	Operating Profit	266	260	-6
Industrial Machinery and Equipment, and Other Operations	Net Sales	1,151	1,245	93
Industrial Machinery and Equipment, and Other Operations	Operating Profit	95	72	-22
Total	Net Sales	8,016	8,168	152
Total	Operating Profit	521	457	-64

By region, Japan posted net sales of 4,613 (100 million yen) (+39) and operating profit of 347 (-51), Asia posted net sales of 2,189 (+136) and operating profit of 173 (-21), and America & Europe & Others posted net sales of 1,365 (-24) and an operating loss of -63 (FY2024: -72).

FY2026 Forecast

For FY2026 (the fiscal year ending March 31, 2027), NHK Spring forecasts net sales of 8,600 (100 million yen), up 432 (+5.3%) from FY2025; operating profit of 590, up 133 (+28.9%), for an operating margin of 6.9%; ordinary profit of 640, up 119 (+22.6%); and profit attributable to owners of parent of 450, up 172 (+61.5%). EPS is forecast at 222.12 yen and ROE at 10.0%. The forecast assumes an average rate of 150.0 yen per US$ and 4.8 yen per Thai baht. By business segment, Disk Drive Suspension is forecast to post net sales of 1,440 (+13.6%) and operating profit of 300 (+15.1%), with HDD suspension sales volumes expected to remain strong; Industrial Machinery and Equipment, and Other Operations is forecast at net sales of 1,330 and operating profit of 110 (+50.8%), as semiconductor process components continue to perform well and integrated metal substrates benefit from higher volumes and a decrease in depreciation and amortization due to impairment losses recorded in the previous period; Automotive Suspension Springs is forecast at net sales of 1,640 (-2.0%) and operating profit of 40 (+450.0%) on productivity improvements and streamlining initiatives primarily at overseas bases; Automotive Seating at net sales of 3,110 (+6.3%) and operating profit of 90 (+11.8%); and Precision Springs & Components at net sales of 1,080 (+2.3%) and operating profit of 50 (+36.9%).

Item (100 million yen)	FY2025 Results	FY2026 1st half	FY2026 2nd half	FY2026 Full-year Forecast	Vs. FY2025	Ratio
Net Sales	8,168	4,160	4,440	8,600	432	5.3%
Operating Profit	457	220	370	590	133	28.9%
Operating Profit Ratio	5.6%	5.3%	8.3%	6.9%	1.3%	－
Ordinary Profit	521	245	395	640	119	22.6%
Profit Attributable to Owners of Parent	278	175	275	450	172	61.5%
EPS (yen)	137.46	－	－	222.12	84.66	－
ROE	6.6%	－	－	10.0%	3.4%	－
Average Rate US$ (yen)	151.0	－	－	150.0	-6.0	－
Average Rate Thai Baht (yen)	4.6	－	－	4.8	-0.2	－

Business Segment (100 million yen)	Metric	FY2025 Results	FY2026 Full-year Forecast	Vs. FY2025	Ratio
Automotive Suspension Springs	Net Sales	1,674	1,640	-34	-2.0%
Automotive Suspension Springs	Operating Profit	7	40	32	450.0%
Automotive Seating	Net Sales	2,925	3,110	184	6.3%
Automotive Seating	Operating Profit	80	90	9	11.8%
Precision Springs & Components	Net Sales	1,056	1,080	23	2.3%
Precision Springs & Components	Operating Profit	36	50	13	36.9%
Disk Drive Suspension	Net Sales	1,267	1,440	172	13.6%
Disk Drive Suspension	Operating Profit	260	300	39	15.1%
Industrial Machinery and Equipment, and Other Operations	Net Sales	1,245	1,330	84	6.8%
Industrial Machinery and Equipment, and Other Operations	Operating Profit	72	110	37	50.8%
Total	Net Sales	8,168	8,600	432	5.3%
Total	Operating Profit	457	590	133	28.9%

Shareholder Returns

For the year ended March 2026, the dividend is 33.0 yen at the end of Q2 and 33.0 yen at year-end, for a total of 66.0 yen, with a dividend payout ratio of 48.0%. For the year ending March 2027, the company forecasts 33.0 yen at the end of Q2 and 36.0 yen at year-end, for a total of 69.0 yen, with a dividend payout ratio of 31.1%. Under the FY2026 Mid-term plan, the company’s shareholder return policy consists of stable dividends considering consolidated performance and payout ratio, and shareholder returns through share buybacks and cancellations while achieving a capital structure that considers efficiency and safety; the mid-term plan’s three-year shareholder returns goal of 60 billion yen (dividends 40 billion yen, share buybacks 20 billion yen) compares with 65.5 billion yen (dividends 42 billion yen, share buybacks 23.5 billion yen) for FY24/25 results plus the FY26 forecast.

Dividend	End of Q2	Year-end	Total	Dividend payout ratio
Result for the year ended Mar. 2026	33.0 yen	33.0 yen	66.0 yen	48.0%
Forecast for the year ending Mar. 2027	33.0 yen	36.0 yen	69.0 yen	31.1%

FY2026 Mid-term Plan Progress

Against the FY26 Mid-term plan targets of net sales of 850 billion yen, operating profit of 52 billion yen (6.1%), ordinary profit of 57 billion yen (6.7%) and net income of 43 billion yen (5.1%), FY2025 results were net sales of 816.8 billion yen, operating profit of 45.7 billion yen (5.6%), ordinary profit of 52.1 billion yen (6.4%) and net income of 27.8 billion yen (3.4%), and the FY2026 forecast is net sales of 860 billion yen, operating profit of 59 billion yen (6.9%), ordinary profit of 64 billion yen (7.4%) and net income of 45 billion yen (5.2%). On the financial indicators, the FY2025 stockholder’s equity to total assets ratio was 59.3% (target: 50% or higher), the dividend payout ratio 48.0% (30% or higher), ROIC 6.8% (7% or higher) and ROE 6.6% (10% or higher); for FY2026 the company forecasts 61.4%, 31.1%, 8.0% and 10.0% respectively. The policy-holding shares net asset ratio, a newly added management indicator, was 15.7% in FY2025 against a target of below 20%, with 14.9% forecast for FY2026. Company-wide ROIC of 6.8% in FY2025 compared with WACC of 8.6%. On cash allocation, the three-year mid-term plan goal of 310.0 billion yen in total cash out (investment 250 billion yen, shareholder returns 60 billion yen) compares with 346.5 billion yen for FY24/25 results plus the FY26 forecast (investment 281 billion yen, shareholder returns 65.5 billion yen), an achievement rate of 112%. The presentation also describes the FY2026 Mid-term plan as the starting point for the next stage of growth rather than the goal, with measures covering DX, elimination of heavy-duty work, and a new training structure and personnel system, and introduces the NHK SPRING Group’s new corporate philosophy.

On the balance sheet, total assets at the end of FY2025 were 7,384 (100 million yen), up 324; stockholder’s equity was 4,376, up 229; cash and bank deposits were 1,084; interest-bearing debt was 642, down 76; and net cash was 441, up 187. Capital investments totaled 476 in FY2025 (FY2024: 402) and are forecast at 587 for FY2026, while depreciation & amortization was 304 (FY2024: 293) and is forecast at 342.

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.