Eagle Industry (6486): FY2025 Results Summary — Sharp Profit Recovery and New Medium-Term Plan “Fly Sky High!”

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

Eagle Industry Co., Ltd. (EKK), a comprehensive manufacturer of mechanical seals and equipment products, reported results for FY2025 in its Financial Results Briefing for Fiscal Year Ended March 31, 2026, dated May 13, 2026. Net sales rose to 1,775 (unit: JPY 100 million, as presented throughout the materials), 106% of the prior year, while operating profit climbed to 135, or 159% of FY2024, and profit attributable to owners of parent doubled to 98 (202%). The company also unveiled its new Medium-Term Management Plan “Fly Sky High!” covering FY2026 to FY2028, positioned around the planned management integration with NOK Corporation.

Consolidated Results (Full-Year Actual)

For FY2025, net sales were 1,775 against 1,682 in FY2024, an increase of 93 (106%). Operating profit rose 50 to 135 (159%), ordinary profit rose 51 to 172 (143%), and profit attributable to owners of parent rose 50 to 98 (202%). The average actual exchange rate was ¥150.7 to the dollar (FY2024: ¥152.6) and ¥174.6 to the euro (FY2024: ¥163.9).

Item (JPY 100Mil)	FY2024 Results	FY2025 Results	Increase/Decrease	vs. FY2024
Net Sales	1,682	1,775	93	106%
Operating Profit	85	135	50	159%
Ordinary Profit	120	172	51	143%
Profit Attributable to Owners of Parent	49	98	50	202%

The bridge analysis of operating profit versus FY2024 shows negative factors from an increase in labor costs (12), an increase in raw material prices, etc. (10), and foreign exchange impact (2), which were more than offset by cost reduction and productivity improvement (31), an increase in product prices (22), and an increase in sales (21), lifting operating profit from 85 to 135.

Segment Results

By segment, Automobile & Construction Machinery sales rose to 933 (106% of FY2024) with operating profit surging to 31 from 6 (551%). General Machinery sales slipped to 395 (97%) while operating profit rose to 57 (107%). Semiconductor sales expanded to 165 (131%) and the operating loss narrowed to (12) from (38). Marine sales grew to 195 (108%) with operating profit of 51 (97%), and Aerospace sales were 88 (96%) with operating profit of 7 (68%).

Segment (JPY 100Mil)	Metric	FY2024 Results	FY2025 Results	vs. FY2024
Automobile & Construction Machinery	Sales	876	933	106%
Automobile & Construction Machinery	Operating Profit	6	31	551%
General Machinery	Sales	408	395	97%
General Machinery	Operating Profit	54	57	107%
Semiconductor	Sales	126	165	131%
Semiconductor	Operating Profit	(38)	(12)	—
Marine	Sales	180	195	108%
Marine	Operating Profit	53	51	97%
Aerospace	Sales	91	88	96%
Aerospace	Operating Profit	10	7	68%
Total	Sales	1,682	1,775	106%
Total	Operating Profit	85	135	159%

FY2026 Forecast

For FY2026, the company forecasts net sales of 1,880 (106% of FY2025), operating profit of 124 (92%), ordinary profit of 158 (92%), and profit attributable to owners of parent of 95 (97%). The assumed exchange rates are ¥155.0 to the dollar and ¥179.4 to the euro. The operating profit bridge anticipates negative factors from an increase in depreciation and other expenses (30), an increase in labor costs (21), and an increase in raw material prices (10), partly offset by cost reduction and productivity improvement (20), an increase in product prices (16), an increase in sales (8), and foreign exchange impact (6). By segment, Automobile & Construction Machinery is projected at sales of 914 with operating profit of 12, General Machinery at 450 and 59, Semiconductor at 200 with an operating loss of (2), Marine at 209 and 47, and Aerospace at 107 and 8. As the initial year of the new Medium-Term Management Plan, the company plans capital investments across all business segments, with CAPEX of 131 (FY2025: 91) and depreciation of 112.

Item (JPY 100Mil)	FY2025 Results	FY2026 Forecast	Increase/Decrease	vs. FY2025
Net Sales	1,775	1,880	105	106%
Operating Profit	135	124	(11)	92%
Ordinary Profit	172	158	(14)	92%
Profit Attributable to Owners of Parent	98	95	(3)	97%

Shareholder Returns

The dividend per share was ¥125 for FY2025, up from ¥100 in FY2024 and ¥80 in FY2023, with a dividend payout ratio of 57.7% and DOE of 4.6%. Over the previous three-year plan (FY2023 to FY2025), operating cash flow of ¥53.5 billion was allocated to CAPEX of ¥32.3 billion and shareholder returns of ¥20.4 billion, comprising dividends of approximately ¥14.2 billion and share buybacks of approximately ¥6.2 billion. The materials state the company executed business investments for future growth while delivering shareholder returns as planned. A dividend forecast for FY2026 cannot be confirmed from the materials.

Indicator	FY2023	FY2024	FY2025
Net Asset per Share (JPY)	2,570.06	2,517.54	2,927.77
Basic Earnings per Share (JPY)	160.84	107.51	216.75
Dividend per Share (JPY)	80	100	125
Dividend Payout Ratio (%)	49.7	93.0	57.7
DOE (%)	3.4	3.9	4.6
ROIC (%)	3.6	3.7	5.7
ROE (%)	6.8	4.2	8.0

New Medium-Term Management Plan and NOK Integration

The new Medium-Term Management Plan “Building a Sustainable Corporate Structure—Fly Sky High!” covers FY2026 to FY2028. Business targets for the final year (FY2028) are achieving net sales of over 200 billion across the EKK Group, achieving record highs for all profit items, and accelerating capital efficiency improvement with ROIC of 7% or higher and ROE of 9% or higher. Main items for promotion include the creation of synergies through the NOK/EKK integration, development and commercialization of next-generation products, advancement of DX and total cost down/waste reduction, and respect for human dignity and development of human resources. As a post-integration vision, the company targets the NOK Group’s net sales of 1 trillion yen in FY2031 by generating post-integration synergies with NOK Corporation alongside the organic growth of the EKK Group’s businesses. The plan combines NOK’s expertise in organic materials with EKK’s expertise in inorganic materials such as metals and ceramics to provide multi-faceted sealing solutions, with sectors such as semiconductors and thermal management cited as areas of increasingly sophisticated sealing requirements.

By business, the Automobile & Construction Machinery segment expects a flat sales outlook during the MTMP period due to a decline in sales of conventional products for internal combustion engines, targeting profit growth through expanded sales of new products—such as solenoid valves for suspensions and products for EVs including the GlideX textured mechanical seal, LLC flow switching valve and carbon bearing—and post-integration synergies. General Machinery expects growth to a 50-billion-yen business driven by increasing energy demand. Semiconductor projects sales expansion from FY2026 onward, driving business expansion of over 25 billion yen through the full-scale operation of the invested Tsukuba Factory. Marine sees a flat profit outlook supported by an increase in the number of new vessels built, leveraging its top market share in stern tube seals for medium and large vessels of 10,000 tonnes and above. Aerospace targets continued production and sales expansion toward a 15-billion-yen business, including defense-related applications and participation in domestic space projects such as H3 Launch Vehicle No. 7 and HTV-X1.

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.