Nabtesco (6268): FY2025 Results Summary — Sales Up 10% and Operating Profit Up 60%; FY2026/12 Guidance Calls for Further Growth and a Dividend Increase

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

Note: Nabtesco’s fiscal year ends in December and the company labels it “FY2025/12”. This site classifies the fiscal year ended December 31, 2025 as FY2025; the labels used in the company’s materials are retained in the body, tables, and segment data below.

Nabtesco Corporation (6268) released its results briefing material for FY2025/12 dated February 19, 2026. Sales rose 10% year on year to 307.9 billion yen and operating profit rose 60% to 20.7 billion yen, with the operating profit margin (OPM) improving 2.1pt to 6.7%. Against the plan, sales were 2% above (300.7 billion yen) and operating profit was essentially in line (-0%). The company states that TRS and CMP progressed well and in line with its plan, while it recorded a loss on the liquidation of affiliates related to the European subsidiary of railway vehicle equipment (approximately 1.3 billion yen) and an impairment loss of goodwill (approximately 1 billion yen) at Deep Sea (acquired in July 2023, Greece). Following the resolution on the company split of the hydraulic equipment business and the transfer of shares of the succeeding subsidiary to Comer Industries S.p.A., announced on July 31, 2025, that business is classified as a discontinued operation under IFRS 5 from the third quarter, and the presentation material is disclosed with sales, operating profit, and profit before tax on a continuing operations basis and net profit attributable to owners of the parent on a continuing and discontinued operations basis.

Consolidated Results (FY2025/12 Actual)

Sales increased 27.5 billion yen to 307.9 billion yen and operating profit increased 7.8 billion yen to 20.7 billion yen. Profit before tax rose 57% to 21.7 billion yen, and net income attributable to owners of the parent rose 55% to 15.7 billion yen, 5% above the plan of 14.9 billion yen. Basic earnings per share was 131.56 yen (up 47.31 yen), ROIC was 4.4% (up 1.4pt), and ROE was 5.8% (up 2.0pt). The exchange rate premises were 149.78 yen to the US dollar, 20.94 yen to the RMB, 169.53 yen to the euro, and 181.13 yen to the Swiss franc. The company explains that sales increased due to favourable demand for precision reducers, marine vessel equipment, railroad vehicle equipment, and domestic automatic doors, with sales contributions of +11.7 billion yen from precision reduction gears, +5.3 billion yen from marine, +3.4 billion yen from railroad, +2.1 billion yen from aircraft, -0.1 billion yen from commercial vehicle, and +0.1 billion yen from packaging machine. Operating profit benefited from increased sales and the Project 10 effect, while it recognized losses of approximately 2.3 billion yen (loss on liquidation of the railroad Europe subsidiary of 1.3 billion yen and impairment loss of the marine European subsidiary of 1 billion yen) and an increase in depreciation expenses and taxes at the Hamamatsu Plant of approximately 1.2 billion yen; FOREX contributed +2 billion yen.

Item (JPY billion)	2024/12 Result	2025/12 Result	YoY Variance	YoY Variance (%)	2025/12 Plan	Variance from plan
Sales	280.5	307.9	27.5	10%	300.7	7.2
Operating Profit	12.9	20.7	7.8	60%	20.8	-0.1
(OPM)	4.6%	6.7%	2.1pt	–	6.9%	-0.2pt
Profit before tax	13.8	21.7	7.9	57%	20.8	0.9
Net income attributable to owners of the parents	10.1	15.7	5.6	55%	14.9	0.8
Basic earnings per share (yen)	84.25	131.56	47.31	56%	124.95	6.61
ROIC	3.0%	4.4%	1.4pt	–	4.6%	-0.2pt
ROE	3.8%	5.8%	2.0pt	–	–	–

On the balance sheet as of December 31, 2025, total assets were 464.0 billion yen (up 18.4 billion yen), including cash and cash equivalents of 73.3 billion yen, trade receivables of 78.6 billion yen (down 13.5 billion yen), and assets held for sale of 43.7 billion yen added due to the company split of the hydraulic equipment business. Liabilities were 175.2 billion yen (up 16.9 billion yen), with borrowings of 45.0 billion yen (up 13.1 billion yen) and liabilities directly associated with assets held for sale of 12.3 billion yen. Equity attributable to owners of the parent was 271.9 billion yen, and the ratio of equity attributable to owners of the parent was 58.6% (down 2.0pt). By region, sales in Japan were 155.2 billion yen (50.4%), Europe 59.7 billion yen (19.4%), China 43.3 billion yen (14.1%), North America 27.5 billion yen (8.9%), Rest of Asia 18.9 billion yen (6.1%), and Other 3.2 billion yen (1.0%); overseas sales were 152.6 billion yen, an overseas sales ratio of 49.6%.

Segment Results

In the Component Solutions (CMP) segment, sales rose 17% to 79.3 billion yen and operating profit rose 103% to 5.4 billion yen (OPM 6.8%, up 2.9pt). Precision reduction gear sales were 78.6 billion yen, up from 66.9 billion yen, and orders were 82.4 billion yen. For industrial robots, finished inventory levels were optimized and sales increased due to investment projects led by EV manufacturers in China and South Korea; in non-robot uses, the sluggish investment environment due to the impact of US tariffs continued and sales were at the same level as the previous year. Although the Hamamatsu Plant, which started operations in August 2024, carries a burden of amortization costs, profits increased due to the Project 10 effect and increased sales. Orders for precision reduction gears in 2025/Q4 were up 11% QoQ and up 28% YoY, recovering for the fourth consecutive quarter, and the company expects FY2025 to be the highest order amount ever received.

In the Transport Solutions (TRS) segment, sales rose 13% to 100.5 billion yen and operating profit rose 9% to 13.6 billion yen (OPM 13.5%, down 0.6pt; 15.8% without one-time factors). Railroad vehicle equipment sales were 25.7 billion yen, aircraft equipment 25.4 billion yen, marine vessel equipment 29.5 billion yen, and commercial vehicle equipment 12.6 billion yen; orders were 109.4 billion yen and the MRO ratio was 40%. Strong demand for new vehicles and MRO in Japan and overseas increased railroad sales, aircraft demand increased on the expansion of defense budgets, and strong demand for new ships and MRO increased marine sales, while commercial vehicle demand in Japan remained resilient despite sluggish demand in Southeast Asia. Although impairment losses and a loss on the liquidation of affiliates were recorded, segment profit increased compared to the previous fiscal year.

In the Accessibility Solutions (ACB) segment, sales rose 4% to 110.7 billion yen and operating profit rose 1% to 9.1 billion yen (OPM 8.2%, down 0.2pt), with orders of 111.1 billion yen and an MRO ratio of 45%. In Japan, revenue increased due to strong redevelopment projects for new building doors and MRO, and platform door projects progressed; overseas, demand for building doors was steady while platform door revenue decreased due to selective order taking for new projects. In the Manufacturing Solutions (MFR) segment, sales rose 1% to 17.4 billion yen and operating profit rose 110% to 2.2 billion yen (OPM 12.6%, up 6.6pt), with orders of 20.3 billion yen; equipment renewal at Japanese food manufacturers was strong but overseas capital investment demand stagnated, and the impact of impairment losses incurred in 2024/Q2 disappeared.

Segment (JPY billion)	Item	2024/12 Result	2025/12 Result	YoY Variance	YoY Variance (%)	2025/12 Plan
Component Solutions (CMP)	Sales	67.6	79.3	11.7	17%	79.0
Component Solutions (CMP)	O.P.	2.7	5.4	2.8	103%	5.4
Component Solutions (CMP)	(O.P.M)	3.9%	6.8%	2.9pt	–	6.8%
Transport Solutions (TRS)	Sales	88.7	100.5	11.7	13%	97.7
Transport Solutions (TRS)	O.P.	12.5	13.6	1.1	9%	14.2
Transport Solutions (TRS)	(O.P.M)	14.1%	13.5%	-0.6pt	–	14.5%
Accessibility Solutions (ACB)	Sales	106.8	110.7	3.9	4%	105.2
Accessibility Solutions (ACB)	O.P.	9.0	9.1	0.1	1%	9.4
Accessibility Solutions (ACB)	(O.P.M)	8.4%	8.2%	-0.2pt	–	8.9%
Manufacturing Solutions (MFR)	Sales	17.3	17.4	0.1	1%	18.8
Manufacturing Solutions (MFR)	O.P.	1.0	2.2	1.2	110%	2.1
Manufacturing Solutions (MFR)	(O.P.M)	6.0%	12.6%	6.6pt	–	11.2%
Headquarters or Elimination	O.P.	-12.3	-9.6	2.7	22%	-10.3
Total	Sales	280.5	307.9	27.5	10%	300.7
Total	O.P.	12.9	20.7	7.8	60%	20.8
Total	(O.P.M)	4.6%	6.7%	2.1pt	–	6.9%

FY2026/12 Forecast

For FY2026/12, the company forecasts sales of 327.0 billion yen (up 6%), operating profit of 27.7 billion yen (up 34%), an OPM of 8.5% (up 1.7pt), profit before tax of 28.0 billion yen (up 29%), and net income attributable to owners of the parent of 17.6 billion yen (up 12%), with basic earnings per share of 150.19 yen, ROIC of 5.8%, and ROE of 6.5%. The exchange rate premises are 145.00 yen to the US dollar, 20.50 yen to the RMB, 170.00 yen to the euro, and 185.00 yen to the Swiss franc. The company notes that the corporate tax rate in 2025 was lower due to the application of tax-effect accounting for the transfer of subsidiaries in the railroad vehicle equipment business, and that in 2026 it is expected to be higher as corporate tax is expected to be incurred due to the transfer of the hydraulic equipment business. Demand for precision reduction gears, aircraft equipment, and marine vessel equipment is expected to increase, with sales contributions of +9.6 billion yen from precision reducers, +3.6 billion yen from aircraft, +2.7 billion yen from marine, +2.1 billion yen from packaging machines, and -1.4 billion yen from railroad; operating profit is expected to increase due to increased sales and the pause of one-time expenses (reduced losses in 2025 of approximately +2.3 billion yen).

Item (JPY billion)	2025/12 Result	2026/12 Forecast	YoY Variance	YoY Variance (%)
Sales	307.9	327.0	19.1	6%
Operating Profit	20.7	27.7	7.0	34%
(OPM)	6.7%	8.5%	1.7pt	–
Profit before tax	21.7	28.0	6.3	29%
Net income attributable to owners of the parents	15.7	17.6	1.9	12%
Basic earnings per share (yen)	131.56	150.19	18.63	14%
ROIC	4.4%	5.8%	1.4pt	–
ROE	5.8%	6.5%	0.7pt	–

By segment, CMP is forecast at sales of 88.6 billion yen (up 9.3 billion yen) and operating profit of 7.0 billion yen (up 1.6 billion yen; OPM 7.9%), with demand for industrial robots and the general industry market expected to recover from the second half of the year due to movements in automobile-related capital investment. TRS is forecast at sales of 107.6 billion yen (up 7.1 billion yen) and operating profit of 18.1 billion yen (up 4.5 billion yen; OPM 16.8%): railroad sales are expected to decline due to the sale of European subsidiaries and the slack season for new domestic cars, while aircraft equipment is expected to grow on the expansion of the defense budget and increased production of commercial aircraft, and both new shipbuilding and shipping market conditions continue to be strong. ACB is forecast at sales of 110.8 billion yen (up 0.1 billion yen) and operating profit of 10.1 billion yen (up 1.0 billion yen; OPM 9.1%), with new building construction in Japan expected to pause from the second half and overseas platform door business with installation being withdrawn strategically. MFR is forecast at sales of 20.0 billion yen (up 2.6 billion yen) and operating profit of 2.8 billion yen (up 0.6 billion yen; OPM 14.0%), as demand for capital investment in Japan, especially food-related products, is strong and overseas investment demand is expected to recover in Europe.

Segment (JPY billion)	Item	2026/12 Forecast	YoY Variance
Component Solutions (CMP)	Sales	88.6	9.3
Component Solutions (CMP)	Operating Profit	7.0	1.6
Component Solutions (CMP)	(OPM)	7.9%	1.1pt
Transport Solutions (TRS)	Sales	107.6	7.1
Transport Solutions (TRS)	Operating Profit	18.1	4.5
Transport Solutions (TRS)	(OPM)	16.8%	3.3pt
Accessibility Solutions (ACB)	Sales	110.8	0.1
Accessibility Solutions (ACB)	Operating Profit	10.1	1.0
Accessibility Solutions (ACB)	(OPM)	9.1%	0.9pt
Manufacturing Solutions (MFR)	Sales	20.0	2.6
Manufacturing Solutions (MFR)	Operating Profit	2.8	0.6
Manufacturing Solutions (MFR)	(OPM)	14.0%	1.4pt

Capital expenditures (excluding the hydraulic equipment business) were 10.1 billion yen in FY2025/12 and are forecast at 12.5 billion yen for FY2026/12, with the main capital investment in 2025 being the Hamamatsu plant for precision reducers; R&D expenses were 12.6 billion yen (forecast 12.7 billion yen) and depreciation was 16.4 billion yen (forecast 16.8 billion yen). Under the medium-term plan’s three-year cash allocation of 160 billion yen (including hydraulic equipment), the progress rate on R&D is 64%, CAPEX 59%, and shareholder returns 65%. The company’s exchange rate sensitivity for FY2026/12 (impact of a 1 yen fluctuation) is 206 million yen on sales and 46 million yen on operating profit for the US dollar, and 1,455 million yen on sales and 221 million yen on operating profit for the RMB.

Shareholder Returns

Nabtesco’s shareholder return policy is approximately DOE 3.5% with a stable dividend and share buybacks in accordance with its financial condition. The annual dividend per share is planned at 80 yen for 2025 (planned), and 82 yen for 2026 (planned), following 78 yen in 2022 and 80 yen in 2023 and 2024; the company states that the dividend increase is based on the shareholder return policy. The FY2026 cash allocation includes shareholder returns of approximately 30 billion yen and more, described as dividend plus share buyback (10 billion yen).

Item	2022	2023	2024	2025 (planned)	2026 (planned)
Annual dividend amount per share (yen)	78	80	80	80	82

Medium- to Long-Term Growth and Business Portfolio

The company’s 2026 business operation plan for medium- to long-term growth has three pillars: accelerating growth of CMP after the hydraulic equipment business split, improving profitability under Project 10 (aiming to achieve an operating profit margin of 10% and more in 2027), and strengthening the business portfolio by building a portfolio that secures stable earnings based on MRO and expands sales in growth markets. In CMP, Nabtesco has secured a high market share mainly for welding and painting industrial robots with a payload of 20 kg or more, and from 2026 it aims to expand sales by proposing a 6-axis set solution including wrist axis for small robots under 20 kg payload and to enter the collaborative robot (cobot) and humanoid markets, having developed and launched the RVmini/Monocrank small reduction gears. For profitability, the company cites a delay in the sales increase in non-robot usage in CMP (countermeasure: expanding sales for growth fields such as semiconductor manufacturing equipment and logistics) and a delay in improving the profitability of the overseas door business in ACB (countermeasures: review of the overseas platform door business and strengthening MRO).

In 2025, the company downsized its portfolio (selection): the company split of the hydraulic equipment business and transfer of the shares to the best owner (discontinued business from July 2025, absorption split in December 2025, 70% share transfer in January 2026), the sale of a European subsidiary of the railway vehicle doors business (transfer agreement signed in December 2025, stock transfer scheduled to be executed in February 2026), and withdrawal from the overseas platform door business with installation work. Actions for 2026 focus on strengthening existing portfolios (concentration), including accelerating the growth of CMP through new products, advancing development investment and expanding the product lineup in aircraft equipment, and securing growth opportunities in marine vessel equipment by increasing production capacity and accumulating R&D investment. The Deep Sea Technology goodwill impairment in TRS (marine vessel equipment) reflected a later-than-planned time to market and launch of products after the July 2023 acquisition of approximately 7.8 billion yen; goodwill went from 26M euro at 2024/Q4 to 20M euro at 2026/Q1 after a 6M euro impairment at 2025/Q4.

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.