IDEC Corporation (6652): FY2025 Results Summary — Operating Profit Jumps 67.5% as Global Demand Recovers

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

IDEC Corporation (Securities code: 6652) announced its financial results for FY2026 (April 1, 2025 to March 31, 2026) on May 14, 2026. Net sales rose 8.3% year on year to 72,967 million yen as channel inventory was absorbed both in Japan and overseas and demand from major industries expanded, driving sales growth across various regions, particularly in China and the United States. Operating profit increased 67.5% to 6,118 million yen, and profit attributable to owners of parent more than doubled, rising 117.7% to 3,873 million yen. The company states that in the first year of its medium-term management plan it achieved results that significantly exceeded initial targets.

Note: The company’s materials label the fiscal year ended March 31, 2026 as “FY2026” and the fiscal year ending March 2027 as “FY2027.” This article follows the company’s labeling in the text and tables below, while the site classifies this period as FY2025.

Consolidated Results (Full Year)

The operating profit margin improved from 5.4% to 8.4%. According to the company, operating profit increased by approx. 2.46 billion yen compared to the previous fiscal year due to the increase in sales in each region. Earnings also improved significantly due to the increased revenue. Average exchange rates for FY2026 were JPY 150.67 for USD, JPY 174.64 for EUR, and JPY 21.22 for CNY.

Item (Millions of JPY)	FY2025 Actual	FY2026 Actual	YoY
Net sales	67,380	72,967	+8.3%
Gross profit	29,437	32,349	+9.9%
SG&A	25,784	26,230	+1.7%
Operating profit	3,652	6,118	+67.5%
Ordinary profit	3,477	6,569	+88.9%
Profit attributable to owners of parent	1,778	3,873	+117.7%
Basic earnings per share (JPY)	60.36	131.22	+70.86

Sales by Region

Overseas sales grew 12.5% to 48,466 million yen, lifting the overseas sales ratio from 63.9% to 66.4%. In Japan, sales increased as channel inventory was worked down and demand in major industries gradually recovered, despite the impact of the business transfer involving a Group company. In the Americas, sales were driven by the pass-through of additional U.S. tariff costs to selling prices as well as progress in clearing backlog. In EMEA, sales in Europe increased, supported by the impact of the weaker JPY, even though demand in major industries declined due to the economic downturn and geopolitical risks. Sales in Asia-Pacific remained strong, driven by growing demand in China’s automotive and semiconductor industries and the normalization of channel inventory levels. Orders also recovered: the full-year amount of orders received rose 11.3% to 76,585 million yen and the order backlog increased 18.3% to 23,376 million yen.

Region (Millions of JPY)	FY2025	FY2026	YoY
Japan	24,294 (36.1%)	24,500 (33.6%)	+0.9%
Overseas	43,085 (63.9%)	48,466 (66.4%)	+12.5%
– Americas	14,389 (21.4%)	15,944 (21.8%)	+10.8%
– EMEA (Europe, Middle East, and Africa)	14,512 (21.5%)	15,657 (21.5%)	+7.9%
– Asia Pacific	14,184 (21.0%)	16,865 (23.1%)	+18.9%
Total	67,380 (100%)	72,967 (100%)	+8.3%

Sales by Product

By product category, HMI sales rose 7.0% to 34,085 million yen, as sales of industrial switches for factory automation remained strong, driven by the normalization of channel inventories, despite the economic slowdown in Europe and the decline in demand in the special vehicle industry. Industrial Relays & Components grew 15.2%, with control relays remaining strong in core markets including Asia Pacific and North America. Automation & Sensing declined 5.9%, as new orders for programmable controllers decreased due to inventory adjustments from OEMs, and the previous fiscal year included large orders for automatic recognition equipment in Japan. Safety & Explosion Protection rose 14.7%, with particularly strong performance in China, and Systems jumped 44.2% on higher sales of control panels for semiconductor manufacturing and logistics-related equipment. Due to the sale of IDEC Systems & Controls Co., Ltd. (solar power generation business), etc., the “Other” category was abolished from the fiscal year ending March 2026.

Product category (Millions of JPY)	FY2025	FY2026	YoY
HMI	31,842 (47.3%)	34,085 (46.7%)	+7.0%
Industrial Relays & Components	11,294 (16.8%)	13,005 (17.8%)	+15.2%
Automation & Sensing	8,705 (12.9%)	8,193 (11.2%)	-5.9%
Safety & Explosion protection	11,045 (16.4%)	12,665 (17.4%)	+14.7%
Systems	3,479 (5.2%)	5,016 (6.9%)	+44.2%
Others	1,013 (1.4%)	—	—
Total	67,380 (100%)	72,967 (100%)	+8.3%

FY2027 Forecast

For FY2027, based on the strong order situation, the company forecasts increased sales and profit compared to the previous fiscal year: net sales of 75,500 million yen (+3.5%), operating profit of 7,200 million yen (+17.7%), and profit attributable to owners of parent of 6,000 million yen (+54.9%). The profit forecast reflects an expected extraordinary profit of 3.9 billion yen from selling the land and buildings of the former office building at the U.S. base. In the second year of the medium-term management plan, the company reviewed the initial plan based on the global market environment: compared with the initial plan announced in May 2025 (net sales of JPY 72 billion and operating profit of JPY 7.2 billion with a 10% margin), the new forecast announced on May 14, 2026 calls for net sales of JPY 75.5 billion and operating profit of JPY 7.2 billion with a 9.5% margin. Exchange rate assumptions are JPY 150 for USD, JPY 180 for EUR, and JPY 21 for CNY.

Item (Millions of JPY)	FY2026 Actual	FY2027 Forecast	YoY
Net sales	72,967	75,500	+3.5%
Gross profit	32,349	35,200	+8.8%
SG&A	26,230	28,000	+6.7%
Operating profit	6,118	7,200	+17.7%
Ordinary profit	6,569	6,750	+2.7%
Profit attributable to owners of parent	3,873	6,000	+54.9%
Basic earnings per share (JPY)	131.22	203.25	+72.03

Shareholder Returns

The company will maintain an annual dividend of 130 yen (interim dividend of 65 yen, year-end dividend of 65 yen). The FY2026 annual dividend of JPY 130 corresponds to a dividend payout ratio of 99.1%. The company’s dividend chart shows annual dividends of 130 yen each year from FY2023 through FY2026, with a forecast of 130 yen for FY2027 as well; earlier years were 50 yen in FY2020 and FY2021, and 100 yen in FY2022 (a dividend of 80 yen plus a commemorative dividend of 20 yen, as shown in the chart).

Medium-Term Management Plan

Under the “New IDEC” medium-term management plan, the company is promoting a transition to a customer-centric business structure and enhanced responsiveness to market changes, together with “Realizing One IDEC” initiatives such as optimizing operations and manufacturing bases globally and establishing an SCM system that leverages digital technology. Targets for FY2028 are net sales of JPY 77 billion or more, an operating profit margin of 13% or more, and ROIC of 7% or more. The company established a new global management matrix structure starting in April 2025 and set up the Global Operations Committee (GOC) to review plans while regularly sharing information and checking progress. Structural reforms cover sales reform, reform of the R&D system and process, and global optimization of SCM and production, including production and assembly at the new head office in the United States and the establishment of a new site in Mexico.

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.