NSK (6471): FY2025 Results Summary — Sales Top ¥911.6 Billion with Steering Consolidation; FY2026 Forecast of ¥1,000.0 Billion in Sales and New Medium-Term Plan 2028 Targeting 8% ROE

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

Note: NSK’s fiscal year ends on March 31. The company labels the fiscal year ended March 31, 2026 as “FY2025” and the fiscal year ending March 31, 2027 as “FY2026”, which matches the classification used on this site. All figures are in billions of yen unless otherwise stated, as presented in the company’s materials.

NSK Ltd. (6471), a bearing and precision machinery manufacturer, released its “Financial Conference — Consolidated Business Results for the Year ended March 31, 2026 / Medium-Term Management Plan 2028” presentation dated May 13, 2026. For FY2025, sales rose 14.4% year on year to ¥911.6 billion (+¥115.0 billion) and operating income rose 36.4% to ¥38.8 billion (+¥10.4 billion); operating income excluding one-time costs was ¥45.2 billion (+¥8.8 billion). Net income attributable to owners of the parent was ¥22.9 billion, up from ¥12.4 billion on a continuing-operations basis. The company states that sales and profits increased YoY with structural improvements and the Steering Business consolidation taking effect, and that results exceeded the revised forecast made in February. ROE was 3.5% (+1.9pt) and ROIC was 2.6% (+1.1pt). For FY2026, NSK forecasts sales of ¥1,000.0 billion (+¥88.4 billion), operating income of ¥42.0 billion (+¥3.2 billion) and net income attributable to owners of the parent of ¥24.0 billion, and plans an annual dividend of ¥34 per share. The company also announced a new Medium-Term Management Plan 2028 (FY2026–FY2028) targeting operating income of ¥75.0 billion and ROE of 8% in FY2028. Separately, on the day before the presentation, NSK and NTN Corporation announced a memorandum of understanding regarding a business integration through the establishment of a joint holding company; the company notes that any effects of this are not factored into the new Medium-Term Management Plan 2028.

Consolidated Results (FY2025 Full Year)

Sales were ¥911.6 billion, up ¥115.0 billion (+14.4%) from ¥796.7 billion in FY2024 and above the February forecast of ¥900.0 billion. Of the increase, ¥100.6 billion came from the Steering Business, which was consolidated as a subsidiary on September 1, 2025 and is disclosed as an independent segment from FY2025; the forex impact on sales was +¥4.1 billion. Operating income was ¥38.8 billion, up ¥10.4 billion (+36.4%) from ¥28.5 billion and above the February forecast of ¥37.0 billion, with the operating margin rising from 3.6% to 4.3%. Operating income excluding one-time costs was ¥45.2 billion (+¥8.8 billion, +24.1%; margin 5.0%), versus ¥36.4 billion (4.6%) a year earlier and a February forecast of ¥42.5 billion. The company notes that profit increased YoY despite the early recognition of restructuring costs (recorded ¥9.4bn up from ¥6.5bn), supported by factors including foreign exchange impact. Income before income taxes was ¥38.0 billion (+¥12.9 billion, +51.5%), and net income attributable to owners of the parent was ¥22.9 billion, up ¥10.5 billion (+84.6%) from ¥12.4 billion on a continuing-operations basis and up ¥12.2 billion (+114.8%) from ¥10.6 billion including discontinued operations; FY2025 results include continuing operations only. Average exchange rates were ¥150.8 per USD (¥152.6 in FY2024), ¥174.8 per EUR (¥163.7) and ¥21.3 per CNY (¥21.1).

Item (Billions of yen)	FY2025 Actual	FY2024 Actual	Change (YoY)	FY2025 Forecast (as of Feb.)
Sales	911.6	796.7	+115.0 (+14.4%)	900.0
Operating income	38.8	28.5	+10.4 (+36.4%)	37.0
Operating margin	4.3%	3.6%	—	4.1%
Operating income excl. one-time cost	45.2	36.4	+8.8 (+24.1%)	42.5
Margin excl. one-time cost	5.0%	4.6%	—	4.7%
Income before income taxes	38.0	25.1	+12.9 (+51.5%)	36.0
Net income attributable to owners of the parent (continuing operations)	22.9	12.4	+10.5 (+84.6%)	20.0
Net income attributable to owners of the parent (continuing and discontinued operations)	22.9	10.6	+12.2 (+114.8%)	20.0
Exchange rate (¥/USD)	150.8	152.6	-1.8 (-1.2%)	149.1
Exchange rate (¥/EUR)	174.8	163.7	+11.1 (+6.7%)	173.9

In the analysis of factors behind the ¥10.4 billion increase in operating income (+¥4.0 billion excluding the Steering Business), the company cites profitability improvement of +¥6.5 billion (portfolio transformation +¥4.5 billion, sales price improvement +¥1.5 billion including tariff cost transfer of +¥7.2 billion, cost reductions and productivity improvement +¥2.5 billion), a US tariff impact of -¥8.1 billion, structural reform costs of -¥9.4 billion in FY2025 versus -¥4.6 billion in FY2024, and a one-time gain of +¥2.6 billion due to the consolidation of the Steering Business. The company states that steady progress was made on structural improvements, although the impact of volume/mix was negative excluding forex and sales price improvement. By customer location, FY2025 sales were Japan ¥286.9 billion (+9.8%), the Americas ¥183.1 billion (+22.1%), Europe ¥126.7 billion (+26.7%), China ¥194.5 billion (+12.7%) and Other Asia ¥120.4 billion (+6.7%), with the non-Japan ratio at 68.5%. Excluding the Steering Business (Japan ¥29.9 billion, Americas ¥25.6 billion, Europe ¥29.4 billion, China ¥10.9 billion, Other Asia ¥4.8 billion), the company comments that in Japan sales increased in industrial machinery whereas they decreased in automotive; in the Americas robust demand continues excluding the US tariff impact; in Europe, amid an economic downturn, sales decreased in industrial machinery and automotive; and in China sales increased through sales expansion and economic stimulus.

Segment Results

NSK reports the Industrial Machinery Business, the Automotive Business, the Steering Business (newly disclosed as an independent segment from FY2025) and Others. In the Industrial Machinery Business, sales rose ¥16.0 billion (+4.4%) to ¥377.5 billion, comprising Industrial Machinery Bearings of ¥319.8 billion (+4.1%) and Precision Machinery and Parts of ¥57.7 billion (+6.5%); excluding the forex impact of +¥3.1 billion, sales were up 3.6%. Industrial bearings increased mainly in machine tools in China, and precision products increased sales in China for machine tools and in the Americas for semiconductor manufacturing equipment. Operating income, however, declined ¥1.4 billion (-9.9%) to ¥12.6 billion (margin 3.3%, from 3.9%), while operating income excluding one-time costs rose ¥1.4 billion (+8.5%) to ¥17.2 billion (4.5%); the Q4 operating margin was 7.3% excluding one-time costs of ¥3.6bn. In the Automotive Business, sales were ¥403.3 billion (+¥1.6 billion, +0.4%), slightly down excluding the forex impact of +¥1.8 billion; sales in Europe declined, partly due to the impact of structural reforms, while sales in Asia (excluding Japan) increased due to sales expansion efforts. Operating income rose ¥2.7 billion (+18.0%) to ¥17.4 billion (margin 4.3%, from 3.7%), and operating income excluding one-time costs rose ¥3.6 billion (+20.4%) to ¥21.5 billion (5.3%); the Q4 operating margin was 6.5% excluding ¥1.9bn of one-time costs. Global vehicle production (S&P) was 92 million units in FY2025, up 2.2% from 90 million. The Steering Business recorded sales of ¥100.6 billion and operating income of ¥7.7 billion (+¥6.3 billion), and Others recorded sales of ¥54.9 billion (-12.8%) and operating income of ¥0.5 billion. Equity method investment gains/losses related to the Steering Business for FY2024 and for FY2025 through August have been reclassified from the Automotive Business to the Steering Business segment.

Segment (Billions of yen)	Metric	FY2025 Actual	FY2024 Actual	Change (YoY)
Industrial Machinery Business	Sales	377.5	361.5	+16.0 (+4.4%)
Industrial Machinery Business	Sales — Industrial Machinery Bearings	319.8	307.3	+12.5 (+4.1%)
Industrial Machinery Business	Sales — Precision Machinery and Parts	57.7	54.1	+3.5 (+6.5%)
Industrial Machinery Business	Operating income	12.6	13.9	-1.4 (-9.9%)
Industrial Machinery Business	Operating income excl. one-time cost	17.2	15.8	+1.4 (+8.5%)
Automotive Business	Sales	403.3	401.7	+1.6 (+0.4%)
Automotive Business	Operating income	17.4	14.7	+2.7 (+18.0%)
Automotive Business	Operating income excl. one-time cost	21.5	17.9	+3.6 (+20.4%)
Steering Business	Sales	100.6	–	+100.6
Steering Business	Operating income	7.7	1.4	+6.3 (+459%)
Others	Sales	54.9	63.0	-8.1 (-12.8%)
Others	Operating income	0.5	2.3	-1.8 (-78.6%)

FY2026 Forecast

For FY2026 (the year ending March 31, 2027), NSK forecasts sales of ¥1,000.0 billion (+¥88.4 billion, +9.7%), operating income of ¥42.0 billion (+¥3.2 billion, +8.2%; margin 4.2%), operating income excluding one-time costs of ¥53.2 billion (+¥8.0 billion, +17.8%; margin 5.3%), income before income taxes of ¥40.0 billion (+¥2.0 billion, +5.2%) and net income attributable to owners of the parent of ¥24.0 billion (+¥1.1 billion, +5.0%). The Steering Business is expected to contribute +¥69.4 billion to the sales increase and -¥3.7 billion to the operating income change. The figures reflect ¥9.0bn in structural reform costs. The forecast assumes exchange rates of ¥150 per USD, ¥180 per EUR and ¥21 per CNY. On the business environment, the company expects strong performance to continue in the semiconductor and machine tool sectors in industrial machinery, with the aftermarket expected to see a gradual recovery, and for automotive, supply chain risk with global vehicle production volume expected to be on par with the FY2025 level (91 million units, NSK forecast, versus 92 million in FY2025). Regarding the Middle East situation, the H1 results forecast reflects a sales decline of approximately ¥4.0bn, and a cost impact from Q2 estimated at approximately ¥2.0bn is expected to be passed on to customers through higher prices; on US tariffs, NSK will continue its policy of passing on any cost increases or decreases to selling prices. Structural reforms continue mainly in Europe and Japan, including discontinuing production operations at the Peterlee and Newark plants in the UK, downsizing the Kielce plant in Poland, and reorganizing production and sales operations in Japan. In the operating income bridge, the company expects profitability improvement of +¥4.5 billion (portfolio transformation +¥5.5 billion, sales price improvement +¥1.5 billion including tariff cost transfer of +¥3.0 billion, cost reductions and productivity improvement +¥2.5 billion), a US tariff impact of -¥3.0 billion and structural reform costs of -¥9.0 billion, and states that the structural reform effect (profitability improvement) will total ¥15.0bn over the three years FY2024–FY2026.

Item (Billions of yen)	FY2026 Forecast	FY2025 Actual	Change (YoY)
Sales	1,000.0	911.6	+88.4 (+9.7%)
Operating income	42.0	38.8	+3.2 (+8.2%)
Operating margin	4.2%	4.3%	—
Operating income excl. one-time cost	53.2	45.2	+8.0 (+17.8%)
Margin excl. one-time cost	5.3%	5.0%	—
Income before income taxes	40.0	38.0	+2.0 (+5.2%)
Net income attributable to owners of the parent	24.0	22.9	+1.1 (+5.0%)
Exchange rate (¥/USD)	150.0	150.8	-0.8 (-0.5%)
Exchange rate (¥/EUR)	180.0	174.8	+5.2 (+3.0%)
Exchange rate (¥/CNY)	21.0	21.3	-0.3 (-1.2%)

By segment, the Industrial Machinery Business forecasts sales of ¥400.0 billion (+¥22.5 billion, +6.0%; Industrial Machinery Bearings ¥335.0 billion, Precision Machinery and Parts ¥65.0 billion), operating income of ¥22.0 billion (+¥9.4 billion, +75.1%; margin 5.5%) and operating income excluding one-time costs of ¥29.0 billion (+¥11.8 billion, +68.9%; margin 7.3%), with H1 sales of ¥195.0 billion and H2 sales of ¥205.0 billion. The company plans to record ¥7.0 bn in restructuring costs in this segment and expects an increase in sales and profits YoY due to volume effects resulting from the strong recovery in demand for semiconductor manufacturing equipment. The Automotive Business forecasts sales of ¥400.0 billion (-¥3.3 billion, -0.8%), operating income of ¥18.0 billion (+¥0.6 billion, +3.6%; margin 4.5%) and operating income excluding one-time costs of ¥20.0 billion (-¥1.5 billion, -7.0%; margin 5.0%), promoting structural reforms and cost improvements toward a full-year operating margin of 5% (excluding one-time costs). The Steering Business forecasts sales of ¥170.0 billion and operating income of ¥4.0 billion, and Others forecasts sales of ¥54.0 billion and operating income of ¥0.0 billion. Capital expenditures are planned at ¥60.0 billion (FY2025: ¥51.9 billion), depreciation and amortization at ¥58.0 billion (¥55.1 billion) and R&D expenses on a managerial basis at ¥40.0 billion (¥34.2 billion).

Shareholder Returns

NSK’s shareholder return policy is to continue stable shareholder returns, with a dividend payout ratio of 30–50% and a dividend on equity (DOE) that will target a minimum of 2.5% and be raised in stages in line with progress in improving ROE, with a target DOE of 3.5% for FY2028, together with flexible share buybacks. The FY2025 full-year dividend was ¥34 per share, unchanged from FY2024, and the FY2026 full-year dividend plan is also ¥34 per share (interim dividend ¥17 per share). The dividend history shown in the presentation is ¥30 for FY2022 and FY2023 and ¥34 for FY2024, FY2025 and the FY2026 plan; DOE was 2.5% in FY2022, 2.4% in FY2023, 2.5% in FY2024 and FY2025 and 2.5% planned for FY2026, with a 3.5% target for FY2028. A share buyback of ¥21.7bn was conducted in FY2023. At the end of FY2025, the net D/E ratio was 0.24 (0.26 at the end of FY2024), total assets were ¥1,239.8 billion (¥1,219.5 billion) and the ratio of equity attributable to owners of the parent to total assets was 54.2% (53.4%); the company notes that assets and liabilities increased from the previous fiscal year-end due in part to the consolidation of the Steering Business.

Item	FY2026 (Plan)	FY2025	FY2024	FY2023
Annual dividend (¥/share)	34	34	34	30
DOE	2.5%	2.5%	2.5%	2.4%
Share buyback	—	—	—	¥21.7bn

Medium-Term Management Plan 2028 (FY2026–FY2028)

In its review of the Medium-Term Management Plan 2026, NSK states that structural reform progress was in line with plan while growth and sales expansion are projected to fall short of targets: against the MTP2026 operating income target of ¥75.0 billion (modified in May 2024), the FY2026 forecast is ¥42.0 billion, compared with ¥27.4 billion in FY2023. Achievements cited include the ¥15.0 bn profitability improvement plan for FY2024–FY2026 (passing on cost increases due to inflation and U.S. tariffs to selling prices, structural reforms to return Europe to profitability, ultra-stable production and cost reductions, and expanded sales of new products for electric vehicles) and stable shareholder returns, while challenges include market fragmentation, prolonged sluggish demand, technological transformation and the rise of Chinese manufacturers, as well as expanding sales in the Industrial Machinery Business, price competitiveness, deteriorating profitability in Japan and Europe, and maintaining profitability in the Steering Business while seeking strategic partners. Under the new Medium-Term Management Plan 2028, NSK renews its commitment to achieving 8% ROE in FY2028, with management objectives of operating income of ¥75.0 billion (margin over 8%), Industrial Machinery operating income of ¥42.0 billion (10%), Automotive operating income of ¥30.0 billion (7%), ROE of 8%, ROIC of 6%, a net D/E ratio of less than 0.4x and an exchange rate assumption of ¥150 per USD; the Steering Business will not be included in the management targets, and the company will continue to seek strategic partners while maintaining its profitability. Non-financial targets include Scope 1+2 CO2 emissions of under -60% versus FY2017 and an employee engagement score of over 75. The profitability roadmap to ¥75.0 billion shows an improvement of +¥44.0 billion from FY2025 operating income of ¥38.8 billion (¥31.1 billion excluding the Steering Business), of which +¥27.0 billion is improvement not reliant on volume, assuming a gradual market recovery of approximately 1% annual growth. Structural reform costs are planned at ¥9.0bn in FY2026, ¥12.5bn in FY2027 and ¥2.5bn in FY2028, with the effect versus FY2023 reaching +¥17.5bn in FY2028 (+¥12.0bn versus FY2025); production restructuring in Europe is to be completed by FY2026, and reforms in Japan include the Fujisawa (Kugenuma) production transfer and downsizing of the Otsu plant. Cash allocation over the three years FY2026–FY2028 assumes operating cash flow of ¥270.0bn, with capital expenditure of ¥170.0bn (strengthening management resources ¥50.0bn and capital investment ¥120.0bn), stable dividends of ¥50.0bn, and strategic investment and share buybacks funded partly by the sale of policy shares (cross-shareholdings, targeted at zero) and the use of cash on hand and interest-bearing debt. Toward NSK Vision 2036, the company aims to establish a robotics business as a new pillar of revenue, expand its PLM (Product-as-a-Service + Maintenance) business, and accelerate business expansion into the robotics sector through collaboration with other companies such as RT and Delta Electronics, while promoting business process transformation utilizing digital technology and AI through collaboration with Accenture. Note: the management objectives slide (P.22) shows FY2025 Automotive operating income of 17.5 (4.3%) and a consolidated operating margin of 4.1%, whereas the results pages show ¥17.4 billion and 4.3% respectively; the results-page figures are used in the tables above.

Management objective	FY2025 Actual (as shown on P.22)	FY2028 Target
Operating income (Billions of yen)	38.8	75.0
Operating margin	4.1%	Over 8%
Industrial machinery operating income (margin)	12.6 (3.3%)	42.0 (10%)
Automotive operating income (margin)	17.5 (4.3%)	30.0 (7%)
ROE	3.5%	8%
ROIC	2.6%	6%
Net D/E ratio	0.24x	Less than 0.4x
Exchange rate (¥/USD)	¥151	¥150

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.