Oki Electric Industry (6703): FY2025 Results Summary — Profit Jumps 72% on ETRIA Gain, Dividend Raised to 65 Yen

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Oki Electric Industry Co., Ltd. (OKI, securities code 6703) announced its financial results for FY2025 on May 13, 2026. Net sales came to 421.6 billion yen, down 30.9 billion yen (7%) year on year, as large-scale projects in Enterprise Solutions were absent, while operating profit was 18.8 billion yen, up 0.2 billion yen (+1%), mainly supported by strong performance in Public Solutions. Profit attributable to owners of parent rose significantly to 21.5 billion yen (+72% YoY), reflecting extraordinary income associated with participation in ETRIA. ROE reached 13.2%, the equity ratio rose to 40.5%, and the annual dividend was raised by 20 yen to 65 yen per share.

Consolidated Results (Full-Year Actual)

According to the executive summary, net sales remained at a solid level despite a YoY decrease due to the absence of large-scale projects. Operating profit totaled 18.8 billion yen, profit attributable to owners of parent came to 21.5 billion yen, and ROE was 13.2%. The equity ratio reached the 40% range, reflecting a steady recovery in the company’s financial position. Results also exceeded the February 5, 2026 forecasts for ordinary profit (+0.8 billion yen) and profit attributable to owners of parent (+2.5 billion yen).

Item (Billion Yen)	FY2025 Results	FY2024 Results	YoY Change
Net sales	421.6	452.5	(30.9) / (7%)
Operating profit	18.8	18.6	+0.2 / +1%
Operating margin	4.5%	4.1%	+0.4%
Ordinary profit	20.8	16.8	+4.0 / +24%
Profit attributable to owners of parent	21.5	12.5	+9.0 / +72%
ROE (%)	13.2%	8.7%	+4.5%
Equity ratio (%)	40.5%	35.4%	+5.1%
Dividend per share (yen)	65	45	+20 / +44%

The operating profit bridge shows FY2024 operating profit of 18.6 billion yen moving to 18.8 billion yen in FY2025: changes in volume and product mix were (9.4) billion yen (Public +3.0, Enterprise (8.3), Component (5.4), EMS +1.3), changes in fixed costs, etc. added +5.8 billion yen (improvement from structural reforms including the impact of ETRIA participation), currency exchange had an impact of +0.2 billion yen, and two one-time factors related to the allowance for doubtful accounts on the China ATM project contributed +3.9 billion yen (elimination of the FY2024 recording) and (0.3) billion yen (release recorded in FY2025). Exchange rates were 150.8 yen to the US dollar (152.6 in FY2024) and 174.8 yen to the euro (163.7 in FY2024).

Segment Results

In Public Solutions, sales and profit increased, driven by growth in Social Infrastructure Solutions, with firefighting and disaster preparedness systems driving sales growth; the TOKKI System business remained solid, mainly in underwater acoustics, supported by expanding defense demand. In Enterprise Solutions, sales and profit declined due to the absence of large-scale projects, but the company promoted production-efficiency initiatives and maintained an operating profit margin of 7% on the basis excluding the one-time factor. In Component Products, sales and profit declined amid demand fluctuations in Japan and overseas, and structural reforms were implemented to stabilize the business. In EMS, the D/EMS business struggled due to sluggish market conditions, but a recovery in the Components business, including printed circuit boards for the AI semiconductor and aerospace sectors, contributed to improved profitability for the segment as a whole.

Segment (Billion Yen)	Metric	FY2025 Results	FY2024 Results
Public Solutions	Net sales	139.7	130.5
Public Solutions	Operating profit	18.1	14.1
Enterprise Solutions	Net sales	150.6	179.8
Enterprise Solutions	Operating profit	10.3	13.1
Component Products	Net sales	68.2	75.8
Component Products	Operating profit	2.0	2.9
EMS	Net sales	62.7	65.9
EMS	Operating profit	1.0	(0.8)
Others	Net sales	0.5	0.4
Others	Operating profit	(1.6)	(1.5)
Corporate/Eliminations	Operating profit	(11.0)	(9.2)
Total	Net sales	421.6	452.5
Total	Operating profit	18.8	18.6

FY2026 Forecast

OKI positions FY2026 as the first year of the “New Management Plan 2031,” which shifts management from defense to offense, and describes the outlook as a plan for higher sales and profit with an operating profit margin of 5% or higher. The company forecasts net sales of 440.0 billion yen (+4% YoY), operating profit of 22.0 billion yen (+17%), ordinary profit of 22.0 billion yen (+6%) and profit attributable to owners of parent of 18.0 billion yen ((16)% YoY; +10% versus FY2025 profit of 16.4 billion yen after excluding the one-time factor of extraordinary income associated with participation in ETRIA). Assumed exchange rates are 155.0 yen to the US dollar and 175.0 yen to the euro.

Item (Billion Yen)	FY2026 Forecast	FY2025 Results	YoY Change
Net sales	440.0	421.6	+18.4 / +4%
Operating profit	22.0	18.8	+3.2 / +17%
Operating margin	+5.0%	+4.5%	+0.5%
Ordinary profit	22.0	20.8	+1.2 / +6%
Profit attributable to owners of parent	18.0	21.5	(3.5) / (16%)
ROE (%)	10.0%	13.2%	(3.2%)
Dividend per share (yen)	65	65	±0%

From FY2026, OKI revises its disclosure segments: Public Solutions comprises the Social Infrastructure Solutions, Network Infrastructure and Defense Systems businesses; Financial & Payments Solutions comprises the Financial & Payments Solutions and Maintenance Services businesses; and Components & Manufacturing comprises the Advanced Components (CFB, Components), Component Products and EMS (D/EMS) businesses. The revision aims at strengthening competitiveness in strategic public and financial markets and promoting structural reform in manufacturing while accelerating growth in high-growth markets. The company’s forecast slide presents FY2026 forecasts by segment together with FY2025 results as follows (segment labels as shown on the slide).

Segment (Billion Yen)	Metric	FY2026 Forecast	FY2025 Results
Public Solutions	Net sales	147.0	146.4
Public Solutions	Operating profit	18.0	20.3
Enterprise Solutions	Net sales	147.0	141.2
Enterprise Solutions	Operating profit	11.0	9.3
Components & Manufacturing	Net sales	139.0	129.4
Components & Manufacturing	Operating profit	5.0	1.9
Others	Net sales	7.0	4.7
Others	Operating profit	(1.0)	(1.6)
Corporate/Eliminations	Operating profit	(11.0)	(10.9)

Balance Sheet and Cash Flows

Total assets stood at 445.2 billion yen at the end of March 2026 (+34.2 billion yen from the end of March 2025), with equity of 180.3 billion yen (+34.7 billion yen). The equity ratio improved to 40.5% (+5.1 points) and the D/E ratio to 0.5 times ((0.2) times). Cash flows from operating activities were 20.6 billion yen (39.3 billion yen in FY2024), cash flows from investing activities were (10.3) billion yen, and free cash flows came to 10.3 billion yen. Cash and cash equivalents at the end of March 2026 were 35.8 billion yen ((0.4) billion yen from a year earlier).

Shareholder Returns

The FY2025 year-end dividend is 65 yen per share, an increase of 20 yen compared to the previous fiscal year (FY2024: 45 yen), equivalent to a 44% increase and 15 yen above the February 5, 2026 forecast of 50 yen. For FY2026, the company forecasts a dividend of 65 yen per share, unchanged from FY2025.

Medium-Term Plan / Topics

FY2026 is the first year of the “New Management Plan 2031,” which shifts management from defense to offense, targeting higher sales and profit with an operating profit margin of 5% or higher. In connection with the plan, the disclosure segments are revised from FY2026 as described above. Segment topics for FY2025 include continuing proposal activities for the equipment transfer project for Australia’s next-generation general-purpose frigates in the TOKKI System business, steady replacement acquisitions in Japan’s financial market with an expanding operation support business in Enterprise Solutions, stable operation of the new factory in Vietnam, and steady progress of operations under the new structure following participation in ETRIA in Component Products.

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.