Alps Alpine (6770): FY2025 Results Summary — Sales Top ¥1 Trillion and Operating Income Rises 23.3%; FY2026 Guides Higher Sales and Profit

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

Note: Alps Alpine Co., Ltd. refers to the fiscal year ended March 31, 2026 as FY2025, and the year ending March 31, 2027 as FY2026; this article follows the company’s labels. According to the Results Briefing FY2025 (April 30, 2026), consolidated net sales rose to ¥1,019.4 billion (+2.9% YoY) and operating income increased to ¥42.0 billion (+23.3% YoY), driven by growth in products for the mobile, consumer, and automotive markets within the Components and Mobility businesses. Profit attributable to owners of parent declined to ¥26.8 billion due to the absence of extraordinary gains recorded in FY2024. For FY2026, the company plans increased revenue and profit, with net sales of ¥1,045.0 billion and operating income of ¥48.5 billion, and an annual dividend of 64 yen.

Consolidated Results (FY2025 Full-Year Actual)

Net sales were ¥1,019.4 billion, up ¥29.0 billion (+2.9%) year on year, with a negative exchange-rate impact of ¥4.9 billion. Operating income was ¥42.0 billion, up ¥7.9 billion (+23.3%), as increased sales led to higher profits; the exchange-rate impact on operating income was -¥3.8 billion. The operating margin improved from 3.4% to 4.1%. Ordinary income rose to ¥49.1 billion (+61.0%), including equity in earnings of affiliates of ¥7.9 billion. Profit attributable to owners of parent fell ¥10.9 billion to ¥26.8 billion, reflecting the absence of the FY2024 gain on sale of shares in affiliated companies (27) and gain on the sale of a business (6.4), and an impairment of ¥3.5 billion for audio products in the Mobility business in FY2025. Both sales and operating income also exceeded the forecast announced on January 30, helped by growth in the Mobility business and products for the mobile market, and greater recovery of development costs.

Item (¥ billion)	FY2024	FY2025	YoY
Net Sales	990.4	1,019.4	+29.0 (+2.9%)
Operating Income	34.1	42.0	+7.9 (+23.3%)
Operating margin	3.4%	4.1%	—
Ordinary Income	30.5	49.1	+18.6 (+61.0%)
Profit Attributable to Owners of Parent	37.8	26.8	-10.9
USD/JPY	152.58	150.77	-1.81
EUR/JPY	163.75	174.79	+11.04

On the balance sheet, total assets were ¥783.1 billion at March 2026 (up ¥42.4 billion from March 2025), with fixed assets increasing due to capital investment in software for the Mobility business and the Component business. Net assets totaled ¥449.4 billion, and the equity ratio rose 1.2 pt to 57.1% on an increase in net assets from foreign currency translation.

Segment Results

Component segment sales rose to ¥358.3 billion (+10.3 billion, 3%) on increases for the mobile, consumer and mobility markets, while operating income was ¥30.1 billion (-0.2 billion), with an operating margin of 8.4%, affected by product mix changes and bullion price increases. Sensor & Communication sales were ¥85.2 billion (+1.0 billion); the segment posted an operating loss of ¥3.5 billion (FY2024: -3.3), reflecting decreases from the transfer of the PWI business and the end-of-life of existing digital key products ahead of new product launches. From FY2025, Optical Devices (5.8) were added to the segment due to a segment change. Mobility (Module & System) sales rose to ¥555.0 billion (+17.8 billion) and operating income increased to ¥14.1 billion from ¥5.6 billion (+8.5 billion, 153%), helped by reduction of unprofitable products and sales price improvement, reduction of abnormal costs for new products, and increased recovery of development costs from customers, partly offset by soaring memory prices and tariff payments.

Segment (¥ billion)	Metric	FY2024	FY2025	YoY
Component	Net Sales	348.0	358.3	+10.3
Sensor & Communication	Net Sales	84.1	85.2	+1.0
Mobility (Module & System)	Net Sales	537.2	555.0	+17.8
Others	Net Sales	20.9	20.7	-0.2
Total	Net Sales	990.4	1,019.4	+29.0
Component	Operating Income	30.3	30.1	-0.2
Sensor & Communication	Operating Income	-3.3	-3.5	-0.1
Mobility (Module & System)	Operating Income	5.6	14.1	+8.5
Others / Eliminations	Operating Income	1.4	1.2	-0.2
Total	Operating Income	34.1	42.0	+7.9

FY2026 Forecast

For FY2026 (fiscal year ending March 31, 2027), Alps Alpine plans increased revenue and profit: net sales of ¥1,045.0 billion (+25.5 billion), operating income of ¥48.5 billion (+6.4 billion, margin 4.6%), ordinary income of ¥45.5 billion (-3.6 billion) and profit attributable to owners of parent of ¥30.0 billion (+3.1 billion). The forecast assumes USD/JPY 150.00, EUR/JPY 180.00 and CNY/JPY 21.00. The plan is weighted to the second half, with first-half operating income of ¥9.0 billion and second-half operating income of ¥39.5 billion. By segment, Component sales are forecast at ¥398.0 billion (operating income 28.0), Sensor & Communication at ¥87.0 billion (operating income 0.5, returning to profit) and Module & System at ¥540.0 billion (operating income 19.0). The company notes environmental changes including changes to OEM customers’ new model plans and soaring prices for memory and raw materials, which it aims to address through price adjustment and compensation negotiations. It estimates the impact on FY2026 revenue of the review of customers’ OEM development plans at ¥6–7bil, and the impact of memory and bullion price hikes at ¥20bil or more; factors such as rising crude oil prices and supply disruptions related to the Middle East situation have not yet been factored in.

Item (¥ billion)	FY2026 Forecast	FY2025 (Actual)	Change
Net Sales	1,045.0	1,019.4	25.5
Operating Income	48.5	42.0	6.4
Ordinary Income	45.5	49.1	-3.6
Profit Attributable to Owners of Parent	30.0	26.8	3.1
Net Sales: Component	398.0	358.3	39.6
Net Sales: Sensor & Communication	87.0	85.2	1.7
Net Sales: Module & System	540.0	555.0	-15.0
Operating Income: Component	28.0	30.1	-2.1
Operating Income: Sensor & Communication	0.5	-3.5	4.0
Operating Income: Module & System	19.0	14.1	4.8
USD/JPY assumption	150.00	150.77	-0.77

Shareholder Returns

Dividends are generally based on a 3% DOE, and the company will also consider options such as flexible share buybacks, taking into account the optimization of its capital structure. For the fiscal year ending March 31, 2026, the year-end dividend is 32.00 yen (scheduled to be paid in late June 2026), bringing the annual dividend to 62 yen (interim 30 yen, year-end 32 yen), up from 60 yen in FY2024. For the fiscal year ending March 31, 2027, the company plans an interim dividend of 32.00 yen (late November 2026) and a year-end dividend of 32.00 yen (late June 2027), for an annual dividend of 64 yen.

Dividend per share (yen)	FY2024	FY2025	FY2026 (Plan)
Interim	30	30	32
Year-end	30	32	32
Annual	60	62	64

Medium-Term Management Plan 2027: Progress

Under the Mid-Term Management Plan 2027 (announced May 29, 2025), the company reports it achieved a P/B ratio of 1x ahead of schedule (KGI: PBR above 1x in FY26 and ROE 10% in FY27). The plan’s FY2027 targets are net sales of ¥1,075.0 billion, operating income of ¥71.0 billion (6.6%) and profit attributable to owners of parent of ¥45.0 billion (4.2%), with an equity ratio of 50%. Progress in FY2025 included steady growth in automotive devices and domestic production competitiveness investment in Components, expansion of portable photo printers and lenses for data centers in Sensor & Communication, and completed development of CDC/peripheral products in Mobility, while headwinds included a major revision of OEM development plans, rising bullion and memory prices, and a sound-product impairment. Future responses include acceleration of Mobility business structural reform, resource reallocation and production site optimization, price optimization, withdrawal of low-profit sound products, and a focus on software and IP business. FY25 investments in improving domestic competitiveness totaled ¥9.7 billion (restructuring of domestic operations 7.5; next-generation manufacturing 2.2), with FY25 returns of ¥1.8 billion. Detailed explanations of the targets by business segment will be provided at the IR Day.

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.