G-TEKT (5970): FY2025 Results Summary — Sales and Operating Profit Ease While Net Income Rises

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

G-TEKT reported FY2025 (April 1, 2025 – March 31, 2026) net sales of ¥333.4 billion, down 1.7% year on year, and operating profit of ¥15.6 billion, down 4.6%. The company said profit slightly decreased year-on-year due to factors such as production disruptions at OEMs in Europe due to cyberattacks, in South America due to natural disasters, and in North America due to semiconductor shortages, but exceeded the plan. Net income attributable to owners of parent rose 8.2% to ¥13.5 billion, which the company attributed to factors such as foreign exchange gains and the recognition of government grant income. For FY2026 the company forecasts net sales of ¥359.0 billion and operating profit of ¥19.2 billion.

Consolidated Results (Full-Year Actual)

Net sales fell ¥5.8 billion year on year to ¥333.4 billion and operating profit fell ¥0.8 billion to ¥15.6 billion, with the operating profit margin at 4.7%, down 0.1pt. Net income attributable to owners of parent increased ¥1.1 billion to ¥13.5 billion and EPS rose ¥24.92 to ¥314.31. Currency effects were +¥2.0 billion on net sales, +¥0.2 billion on operating profit and +¥0.2 billion on net income.

Item (¥ billions)	FY2024 Apr. – Mar.	Change	YoY variance	FY2025 Apr. – Mar.	Currency effects
Net sales	339.2	-5.8	-1.7%	333.4	+2.0
Operating profit	16.4	-0.8	-4.6%	15.6	+0.2
Operating profit margin	4.8%	-0.1pt	–	4.7%	–
Net income attributable to owners of parent	12.4	+1.1	+8.2%	13.5	+0.2
EPS (¥)	289.39	+24.92	+8.6%	314.31	–

On a fourth-quarter basis (January – March), net sales rose 17.1% year on year to ¥99.0 billion, operating profit rose 50.7% to ¥8.2 billion with an 8.3% margin, and net income attributable to owners of parent rose 103.5% to ¥7.2 billion, with EPS of ¥167.37.

Factors Affecting Operating Profit

The company bridged operating profit from ¥16.4 billion in FY2024 to ¥15.6 billion in FY2025 with the following items, in ¥ billions: an increase in new vehicle model development sales (+1.6), cost saving activities (+0.6), an increase in labor cost (-1.3), a fall in scrap metal price (-0.6), depreciation (-0.5), an unfavorable vehicle production mix (-0.4), an increase in manufacturing cost (-0.3), an increase in SG&A expense (-0.1) and the impact of foreign exchange rates (+0.2).

Net Sales by Business Type and Customer

Auto body components, the largest category, declined 3.2% to ¥295.3 billion, or 88.6% of the total, while new vehicle model development sales grew 25.9% to ¥30.2 billion, or 9.1%. Transmission parts fell 7.2% to ¥7.7 billion. EV-related net sales rose 72.6% to ¥19.4 billion, equal to 5.8% of net sales versus 3.3% a year earlier. In the materials, “mass production” sales means sales of assembly and transmission parts, and “new vehicle model development” sales means sales of equipment, die and new model prototype.

Item (¥ billions)	FY2024 Net sales	FY2024 Ratio	FY2025 Net sales	FY2025 Ratio	YoY variance
Auto body components	304.9	89.9%	295.3	88.6%	-3.2%
New vehicle model development	24.0	7.1%	30.2	9.1%	+25.9%
Transmission parts	8.3	2.5%	7.7	2.3%	-7.2%
Other	2.0	0.6%	0.2	0.0%	-92.3%
Total	339.2	–	333.4	–	-1.7%
EV-related Net Sales	11.3	3.3%	19.4	5.8%	+72.6%

By customer, Honda accounted for ¥172.2 billion or 51.6% of net sales, down from ¥185.1 billion and 54.6% in FY2024. Toyota contributed ¥73.9 billion or 22.2%, Subaru ¥35.1 billion or 10.5%, Jaguar Land Rover ¥14.8 billion or 4.4%, Mazda / Ford ¥9.7 billion or 2.9%, BMW ¥7.2 billion or 2.1%, and other customers ¥20.5 billion or 6.3%.

Segment Results

Japan posted the largest gain, with net sales up 10.2% to ¥76.0 billion and operating profit up 29.8% to ¥7.36 billion on higher mass production by major customers and higher new vehicle model development sales. North America grew net sales 1.0% to ¥127.0 billion and operating profit 7.5% to ¥5.40 billion, as higher new vehicle model development sales including molds and prototyping offset lower production volumes at major clients. Europe saw net sales fall 2.5% to ¥36.6 billion and operating profit fall 24.4% to ¥2.18 billion on lower customer production volumes and higher labor costs. Asia was broadly flat on sales at ¥40.2 billion with operating profit up 2.4% to ¥1.61 billion. China recorded net sales down 7.9% to ¥53.2 billion and an operating loss of ¥0.95 billion, as the sales decline outweighed efforts to control labor costs and reduce expenses. South America lifted net sales 1.1% to ¥18.3 billion but operating profit fell 46.2% to ¥0.67 billion. The materials note that the equity-method affiliate G-ONE AUTO PARTS DE MEXICO, S.A. DE C.V. is excluded from the North America segment.

Segment	Metric (¥ billions)	FY2024 Apr. – Mar.	FY2025 Apr. – Mar.	YoY variance	Currency effects
Japan	Net Sales	68.9	76.0	10.2%	–
Japan	Operating Profit	5.67	7.36	29.8%	–
North America (the U.S., Canada, Mexico)	Net Sales	125.8	127.0	1.0%	-1.3
North America (the U.S., Canada, Mexico)	Operating Profit	5.03	5.40	7.5%	0.02
Europe (the U.K., Slovakia)	Net Sales	37.5	36.6	-2.5%	1.0
Europe (the U.K., Slovakia)	Operating Profit	2.89	2.18	-24.4%	0.11
Asia (Thailand, India, Indonesia)	Net Sales	40.3	40.2	-0.1%	1.7
Asia (Thailand, India, Indonesia)	Operating Profit	1.57	1.61	2.4%	0.08
China	Net Sales	57.8	53.2	-7.9%	0.3
China	Operating Profit	-0.15	-0.95	–	0.05
South America (Brazil)	Net Sales	18.1	18.3	1.1%	0.3
South America (Brazil)	Operating Profit	1.24	0.67	-46.2%	-0.03

Cash Flow and Capital Expenditure

Cash and cash equivalents rose from ¥31.2 billion at March 31, 2025 to ¥37.3 billion at March 31, 2026, with operating cash flow of ¥35.1 billion, investing cash flow of -¥37.4 billion, financing cash flow of ¥6.1 billion and other of ¥2.3 billion. Key factors cited were profit before income taxes of ¥19.0 billion and depreciation of ¥18.9 billion within operating cash flow, purchase of property, plant and equipment of -¥40.2 billion and payments into time deposits of ¥2.4 billion within investing cash flow, and a net increase in borrowings of ¥10.7 billion within financing cash flow.

Investments in property, plant and equipment totaled ¥21.6 billion in FY2025, down from ¥34.4 billion in FY2024, and are planned at ¥37.1 billion in FY2026, with North America rising to ¥14.6 billion from ¥4.2 billion. R&D expenditure was ¥3.0 billion in FY2025 against ¥3.4 billion in FY2024, with ¥4.1 billion planned for FY2026.

FY2026 Forecast

For FY2026 the company forecasts net sales of ¥359.0 billion, up 7.7%, operating profit of ¥19.2 billion, up 22.9%, with a 5.3% margin, net income attributable to owners of parent of ¥13.0 billion, down 3.4%, and EPS of ¥303.65. Currency effects are assumed at -¥2.7 billion on net sales and -¥0.1 billion on operating profit. The company said profit is expected to increase due to higher new vehicle model development sales driven by new model launches in Europe and Asia, as well as higher unit prices.

Item (¥ billions)	FY2025 Apr. – Mar.	Change	YoY variance	FY2026 Outlook Apr. – Mar.	Currency effects
Net sales	333.4	+25.6	+7.7%	359.0	-2.7
Operating profit	15.6	+3.6	+22.9%	19.2	-0.1
Operating profit margin	4.7%	+0.6pt	–	5.3%	–
Net income attributable to owners of parent	13.5	-0.5	-3.4%	13.0	-0.1
EPS (¥)	314.31	-10.66	-3.4%	303.65	–

By region, every segment is guided higher on sales except China, which is held flat at ¥53.2 billion but is expected to return to an operating profit of ¥0.40 billion from an operating loss of ¥0.95 billion. Europe, at +21.0%, and South America, at +21.5%, show the largest planned sales growth.

Region (¥ billions)	Net Sales FY2025 Result	Net Sales FY2026 Outlook	Operating Profit FY2025 Result	Operating Profit FY2026 Outlook
Japan	76.0	83.0	7.36	7.97
North America	127.0	135.5	5.40	7.00
Europe	36.6	44.3	2.18	3.09
Asia	40.2	44.8	1.61	1.99
China	53.2	53.2	-0.95	0.40
South America	18.3	22.2	0.67	1.09
Intercompany Eliminations	-17.8	-24.0	-0.64	-2.34
TOTAL	333.4	359.0	15.62	19.20

Shareholder Returns

This cannot be confirmed from the materials. The presentation does not include dividend or share repurchase information.

Currency Assumptions

Weighted average rates in FY2025 were ¥150.79 per US dollar, a change of -1.2% year on year, ¥202.11 per UK pound sterling (3.8%), ¥174.81 per euro (6.7%), ¥4.67 per Thai baht (6.6%), ¥1.71 per Indian rupee (-5.5%), ¥0.0091 per Indonesian rupiah (-4.2%), ¥21.24 per Chinese yuan renminbi (0.6%) and ¥27.73 per Brazilian real (1.7%).

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.