NITTOSEIKO (5957): FY2025 Results Summary — Record Sales as Fastener Segment and Indian Subsidiary Drive Growth

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NITTOSEIKO CO., LTD. reported net sales of 50,238 million yen for FY2025 (the fiscal year ended December 31, 2025), up 3,168 million yen or 6.7% year on year, with operating income rising 105 million yen (+3.2%) to 3,431 million yen. Ordinary income fell 164 million yen (△4.6%) to 3,409 million yen and net income attributed to shareholders of the parent company declined 47 million yen (△2.2%) to 2,152 million yen, reflecting foreign exchange losses and higher interest payments on borrowings related to M&A. Net sales exceeded the forecast announced on November 13, 2025 by 138 million yen (+0.3%), while operating income came in 168 million yen (△4.7%) below plan. Alongside the results, the company announced its new Mid-Term Management Plan “Mission G-final” covering 2026-2028.

Consolidated Results (Full-Year Actual)

Gross profit rose 804 million yen (+7.2%) to 12,045 million yen and the gross profit ratio improved to 24.0% from 23.9%, as manufacturing cost reductions achieved through supplier reviews and mold improvements in the Fastener Segment took effect. Selling, general and administrative expenses increased 699 million yen (+8.8%) to 8,613 million yen, mainly due to the recording of India M&A-related expenses in 1Q, which the company cites as the reason the operating income ratio temporarily declined to 6.8% from 7.1%. Below the operating line, the yen’s appreciation produced foreign exchange losses, the Indonesian rupiah weakened, and interest payments rose on increased M&A-related borrowings and higher interest rates.

Item (Unit: Million yen / %)	FY2024	FY2025	YoY (Amount change)	YoY (% Change)	FY2025 Forecast (as of Nov. 13, 2025)	vs. Forecast (Amount change)	vs. Forecast (% Change)
Net sales	47,069	50,238	3,168	6.7	50,100	138	0.3
Gross profit	11,240	12,045	804	7.2	–	–	–
Selling, general and administrative expenses	7,914	8,613	699	8.8	–	–	–
Operating income	3,326	3,431	105	3.2	3,600	△ 168	△ 4.7
Ordinary income	3,573	3,409	△ 164	△ 4.6	3,700	△ 290	△ 7.9
Net income attributed to shareholders of the parent company	2,199	2,152	△ 47	△ 2.2	2,300	△ 147	△ 6.4
Net income per share (yen)	60.18	59.34	–	–	63.36	–	–

On the balance sheet, total assets grew 2,068 million yen to 57,673 million yen, with property, plant and equipment up 1,658 million yen and inventory up 760 million yen mainly on the Indian subsidiary, while accounts receivable fell 840 million yen on a shortened collection period. Total net assets increased 2,410 million yen to 41,002 million yen. Cash flow from operating activities was 2,930 million yen (down 777 million yen year on year) and cash flow from investing activities was an outflow of 2,732 million yen, including 1,566 million yen for the acquisition of the Indian subsidiary’s shares, leaving free cash flow of 197 million yen versus 2,808 million yen a year earlier.

Segment Results

The Fastener Segment posted increased revenue and profit, with net sales up 10.2% to 37,103 million yen and operating income up 38.8% to 2,271 million yen, lifting the segment profit ratio to 6.1% from 4.9%. The Indian subsidiary added in 2Q contributed to the automobile industry, precision screws for game consoles increased significantly, and demand for AI-related products and automobile CASE-related products grew primarily within Japan. The Assembly Machine Segment saw sales fall 5.5% to 6,274 million yen and operating income drop 33.4% to 760 million yen, as slowing EV sales and sluggish capital investment caused by U.S. tariffs offset a significant increase in energy-sector sales, compounded by the reaction to large equipment orders in the previous year. The Control System Segment recorded sales of 6,714 million yen (△0.4%) and operating income of 503 million yen (△24.7%); analytical instruments for chemicals and pharmaceuticals, domestic battery-related measurement equipment and overseas elemental analyzers performed well, but revenue declined on the reaction to previous-year large orders in the energy and automobile sectors. The Medical Segment lifted sales to 145 million yen from 19 million yen following a strategic restructuring of its product portfolio, narrowing its operating loss to 103 million yen.

Segment	Item (Unit: Million yen / %)	FY2024	FY2025	YoY (% Change)
Fastener	Net sales	33,664	37,103	10.2
Fastener	Operating income	1,636	2,271	38.8
Fastener	Profit ratio	4.9	6.1	–
Assembly Machine	Net sales	6,642	6,274	△ 5.5
Assembly Machine	Operating income	1,141	760	△ 33.4
Assembly Machine	Profit ratio	17.2	12.1	–
Control System	Net sales	6,743	6,714	△ 0.4
Control System	Operating income	669	503	△ 24.7
Control System	Profit ratio	9.9	7.5	–
Medical	Net sales	19	145	638.4
Medical	Operating income	△ 120	△ 103	–
Medical	Profit ratio	△ 612.3	△ 71.0	–

Overseas sales rose to 15,488 million yen from 14,233 million yen, raising the overseas ratio to 30.8% from 30.2%. By region, Southeast Asia grew 6.0% to 6,403 million yen on strong fastener sales for office automation equipment and home appliances in Malaysia, South Asia surged 1,172.4% to 1,357 million yen on the incorporation of the Indian subsidiary and industrial machinery sales in India, and Europe rose 6.8% to 703 million yen as PFAS regulations sustained demand for organic fluorine analysis. East Asia declined 3.0% to 4,677 million yen on weaker demand for moisture meters and resistivity meters for lithium-ion batteries destined for China, and North America fell 16.4% to 1,900 million yen on slowing EV demand and tariff-related investment stagnation. The company states that the new Indian subsidiary added approximately 1 billion yen and that overseas operations excluding it increased by approximately 0.2 billion yen.

FY2026 Forecast

For FY2026, NITTOSEIKO forecasts net sales of 52,000 million yen (+3.5% year on year), operating profit of 3,800 million yen (+10.7%), ordinary profit of 3,800 million yen (+11.5%) and net income attributed to shareholders of the parent of 2,300 million yen (+6.9%), with the operating profit ratio recovering to 7.3% and net income per share of 63.41 yen. In the Fastener Segment the company expects ADAS-related standard equipment adoption to continue driving orders despite automobile market uncertainty, with India growing significantly, the U.S. market beginning to bottom out and data centers emerging as a new market. In the Assembly Machine Segment, it expects firm demand for game consoles and data centers on generative AI growth while expanding in Europe and India. In the Control System Segment, it anticipates sales of large-scale system products for pharmaceutical companies and increased demand for analytical instruments as domestic PFOS and PFOA regulations take effect in April 2026, with organic solvent recycling equipment scheduled for release in 2026.

Item (Unit: Million yen / %)	FY2025	FY2026 (Forecast)	YoY (Amount Change)	YoY (% Change)
Net sales	50,238	52,000	1,761	3.5
Operating profit	3,431	3,800	368	10.7
Ordinary profit	3,409	3,800	390	11.5
Net income attributed to shareholders of the parent	2,152	2,300	147	6.9
Net income per share (yen)	59.34	63.41	–	–

Total growth investment is planned at 2,750 million yen for 2026, against a 2025 result of 4,169 million yen. R&D expenses are planned to rise to 1,000 million yen from 845 million yen and capital investment is planned at 1,750 million yen versus 1,748 million yen in 2025, while business expansion spending falls to 0 from 1,576 million yen in 2025, which covered the acquisition of an Indian special cold forged parts manufacturer. Capital investment items planned for 2026 include installation of automatic cleaning machines and building expansion at Shinwa Seiko, solar panels at a domestic subsidiary, and a third-phase upgrade of the Yata Plant special high-voltage power receiving facility.

Shareholder Returns

The annual dividend per share for FY2025 was 23.0 yen, up from 19.5 yen in FY2024, with total returns of 847 million yen and DOE of 2.4%. For FY2026 the company forecasts an annual dividend of 24.0 yen and total returns of 884 million yen. Under the Mid-Term Plan period, NITTOSEIKO will implement a progressive dividend policy with a minimum of 24 yen per share, aiming for DOE of 3% or higher by 2028. The financial strategy also targets a dividend yield of over 3% and states that shareholder returns will be delivered through dividends and share buybacks.

Item	FY2024	FY2025	FY2026 (Forecast)
Annual dividend per share (yen)	19.5	23.0	24.0
Total returns (Mil Yen)	722	847	884
DOE	2.1%	2.4%	–

Mid-Term Management Plan “Mission G-final” (2026-2028)

Reviewing the previous plan, the company reports that profitability remains a particular challenge. Against FY2025 targets, ROIC came in at 6.1% versus a target of 8% or more (cited reason: weak revenue performance), ROE at 6.1% versus 9% or more (lack of investment and dividend strategy), the engagement score at 3.7P versus 3.8P or more, and labor productivity 11.8% UP versus a 24% UP target compared to 2022. Environmental targets were exceeded: CO2 emissions were ▲20.5% versus a ▲12% target and waste on a basic-unit basis was ▲28.8% versus a ▲5% target, both compared to 2019. The new plan has been devised with profitability improvement as its central theme.

The Vision for 2028 sets operating income of 6 Bil Yen as the top-level target, together with net sales of 63.2 Bil Yen, an operating income ratio of 9.6%, ROE of over 9% and ROIC of over 8%. Sustainability indicators for 2028 include CO2 emissions 28% less and waste volume on a basic-unit basis 41% less than 2019, user contribution to CO2 reduction of over 98,000 t, labor productivity 7.6% UP and an engagement score of 3.8P, with FY2050 carbon neutrality as the long-term goal. By segment, net sales targets for 2028 are 43,198 million yen for Fastener (CAGR from 2025 of 3.9%), 12,471 million yen for Assembly Machine (18.7%) and 7,243 million yen for Control System (1.9%).

On capital efficiency, the company notes that PBR was 0.71 times at the end of FY2025 against a 2028 target of 1.0 times, with PER of 11.96 times, ROE and ROIC both at 6.1% and financial leverage of 1.59 times, and it cites a reference WACC of 6.6% calculated in 2025. Cumulative cash allocation for 2026-2028 is planned at 8.6 Bil Yen for capital investment, 5.0 Bil Yen for strategic investment, 3.3 Bil Yen for R&D expenses, 3.2 Bil Yen for shareholder returns and 1.1 Bil Yen for strengthening the financial base, funded by operating cash flow of 18.2 Bil Yen, capital raising of 2.5 Bil Yen and cash on hand of 0.6 Bil Yen. The company also reports that the number of shareholders roughly doubled over three years, from 5,982 at the end of FY2022 to 11,581 at the end of FY2025.

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.