UMC Electronics (6615): FY2025 Results Summary — Return to Net Profit despite Lower Sales

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

UMC Electronics Co., Ltd. (Securities Code: 6615), an EMS (electronics manufacturing services) company, reported consolidated net sales of 112,726 million yen for the fiscal year ended March 31, 2026, a decrease of 14.6% compared to the previous period. Operating profit was 1,209 million yen (a decrease of 43.7%), while profit attributable to owners of the parent was 283 million yen, compared to a net loss of 2,508 million yen in the previous fiscal year.

Note: The company’s briefing materials label the fiscal year ended March 31, 2026 (April 2025 – March 2026) as “FY2026”; this article retains the labels used in the materials. This article is based on the corrected version of the FY2026 Financial Results Briefing Materials released on May 28, 2026.

Consolidated Results (Full-Year Actual)

According to the company, the environment surrounding the group remained highly uncertain during the fiscal year due to sluggish demand in the Chinese market and the impact of U.S. tariff policies, as well as geopolitical risks in various regions including the Middle East, surging resource prices, and concerns about an economic downturn. Operating profit decreased because the decline in sales and the resulting worsening of manufacturing cost ratios outweighed improvements such as company-wide loss reductions. Ordinary profit of 1,107 million yen (down 32.7%) reflected the reduced sales, while interest expense decreased due to reduced borrowings and lower interest rates, and exchange rate losses decreased as the imbalance between foreign currency-denominated assets and liabilities was reduced. All monetary figures below are in millions of yen unless otherwise noted.

Item	FY2025 (Apr 2024 – Mar 2025)	FY2026 (Apr 2025 – Mar 2026)	Change (Amount)	Change (%)
Net sales	131,938	112,726	(19,211)	(14.6)
Operating profit	2,149	1,209	(939)	(43.7)
Ordinary profit	1,646	1,107	(539)	(32.7)
Profit attributable to owners of the parent	(2,508)	283	2,791	ー
Earnings per share	(90.49 yen)	8.48 yen	98.98 yen	ー
Exchange rate (1USD=)	152 yen	150 yen	(2 yen)	ー

At the end of March 2026, total assets stood at 75,900 million yen (up 2,273 million yen from the end of March 2025), net assets were 17,143 million yen (up 1,826 million yen), and the capital ratio was 22.5% (up 1.8 points from 20.7%).

By contributing factor, operating profit declined from 2,149 million yen in FY2025 to 1,209 million yen in FY2026, reflecting increases and decreases in sales / changes in model composition of -271 million yen, an increased cost burden of -992 million yen, an improvement effect of +315 million yen, and others of +8 million yen.

Sales by Product

In the automotive equipment sector, sales decreased due to the impact of sluggish demand in the Chinese market, as well as the discontinuation and production adjustments of some products. In the OA equipment sector, production of products for multifunction devices and laser printers remained steady for some models, but sales declined due to the discontinuation of production for certain products. In the industrial equipment sector, while demand for semiconductor equipment is showing signs of recovery, sales decreased due to production adjustments related to control equipment and the fact that revenue from some transactions with customers has been recorded on a net basis as agency transactions since the first quarter of the fiscal year.

Product Category	FY2025 (Apr 2024 – Mar 2025)	FY2026 (Apr 2025 – Mar 2026)	Change (Amount)	Change (%)
Automotive Equipment	69,834	58,646	(11,187)	(16.0)
OA Equipment	40,326	36,487	(3,839)	(9.5)
Industrial Equipment	20,682	16,656	(4,026)	(19.5)
Others (EMS Business)	337	216	(121)	(36.0)
Other Businesses	757	720	(37)	(5.0)
Total	131,938	112,726	(19,211)	(14.6)

The company breaks down the total sales decrease of 19,211 million yen into an increase in net revenue recognized as agency transactions of (2,065) million yen, an exchange rate impact of (209) million yen, and a decrease in production of (16,937) million yen.

FY2027 Forecast

For FY2027 (April 2026 – March 2027), the company forecasts net sales of 115,000 million yen, operating profit of 800 million yen, ordinary profit of 600 million yen, and a loss attributable to owners of the parent of 400 million yen, based on an assumed exchange rate of 149 yen to the U.S. dollar. Relative to the FY2026 operating profit of 1,209 million yen, the forecast of 800 million yen reflects a decrease in production at the China base of -570 million yen, an increased cost burden of -460 million yen, and an improvement effect of +621 million yen.

Item	FY2027 Forecast (Apr 2026 – Mar 2027)	FY2026 (Actual)
Net sales	115,000	112,726
Operating profit	800	1,209
Ordinary profit	600	1,107
Profit attributable to owners of the parent	(400)	283
Exchange rate (1USD=)	149 yen	150 yen
Earnings per share	(14.21 yen)	8.48 yen

Shareholder Returns

The dividend on common shares for FY2026 was 10 yen per share, unchanged from FY2025. The dividend on preferred shares was 44, compared with 46 in FY2025 (a decrease of 4.3%). The dividend payout ratio including preferred shares was 117.9% for FY2026. The dividend for the fiscal year ending March 2027 is currently undecided.

Item	FY2025	FY2026	FY2027 Forecast
Dividends (common shares)	10 yen/share	10 yen/share	Undecided
Dividends (preferred shares)	46	44	Undecided
Dividend payout ratio (including preferred shares)	ー	117.9%	ー

Topics

With UMC-H Electronics, a consolidated subsidiary, obtaining certification (release dated March 11, 2026), all sites within the group that perform PCB assembly for the automotive equipment sector have completed IATF 16949 certification. The number of awards received from customers in the current fiscal year was six, compared with five in the previous fiscal year.

Because the company has applied to change its market segment from the Tokyo Stock Exchange Prime Market to the Standard Market, its shares were designated as a Supervised Stock (Under Review) by the Tokyo Stock Exchange effective April 1, 2026, and the designation remained in place as of May 15, 2026. The company states that there is no impact on the group’s production activities and that it will continue the application process so that the designation can be lifted.

In sustainability, the company introduced the human resource management system “Talent Palette” (release dated January 21, 2026), acquired the “Tomonin Mark” for supporting employees balancing work and caregiving, and revised the “UMC Group Supply Chain CSR Promotion Guidebook” for business partners in March 2026.

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.