Maxell (6810): FY2025 Results Summary — Net Profit Doubles While Silver Costs Squeeze Operating Profit

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

For FY2025 (April 2025 – March 2026), Maxell, Ltd. (TSE Prime: 6810) reported net sales of 129.4 billion yen (YoY (0.3%)), operating profit of 7.9 billion yen ((15.3%)) and net profit of 8.3 billion yen (+102.0%). Although sales of primary batteries increased and licensing revenue rose, overall sales and profit decreased due to lower sales of semiconductor-related products and health & beauty care products, as well as soaring raw material costs. Net profit increased mainly due to the recording of extraordinary income associated with the equity transfer of a consolidated subsidiary.

Note: This article is based on the presentation “Financial Results of FY2025” dated April 27, 2026, revised as of May 22, 2026. According to the company, part of the “Summary of Financial Results for the Fiscal Year Ended March 31, 2026” announced on April 27, 2026 was corrected, and the figures shown in “Cash Flow Changes” on page 7 of the presentation were revised accordingly (cash flows from operating activities: 8.9 billion yen before correction, 8.4 billion yen after correction; cash flows from investing activities: (15.1) billion yen before correction, (14.5) billion yen after correction).

Consolidated Results (Full-Year Actual)

Net sales came in 7.1 billion yen below the company’s forecast of 136.5 billion yen announced on April 25, 2025, and operating profit fell 2.1 billion yen short of the 10.0 billion yen forecast, while net profit exceeded the 7.0 billion yen forecast by 1.3 billion yen. The operating profit ratio was 6.1%. ROE rose to 9.3% (+4.9pt. year on year), while ROIC declined to 4.6% ((1.2pt.)). The shareholders’ equity ratio fell 7.3 points to 48.2%, and free cash flow was -6.1 billion yen.

Item (JPY billion)	FY2024 Result	FY2025 Forecast (Apr 25, 2025)	FY2025 Result	Changes to L/Y	Changes to Forecast
Net Sales	129.8	136.5	129.4	(0.4)	(7.1)
Operating Profit (OP ratio)	9.3 (7.2%)	10.0 (7.3%)	7.9 (6.1%)	(1.4)	(2.1)
Ordinary Profit (OP ratio)	9.8 (7.5%)	—	8.6 (6.6%)	(1.2)	—
Net Profit (OP ratio)	4.1 (3.2%)	7.0 (5.1%)	8.3 (6.4%)	4.2	1.3
Shareholders’ Equity Ratio	55.5%	—	48.2%	(7.3pt.)	—
Free Cash Flow	1.8	—	-6.1	(7.9)	—
ROIC	5.8%	6.2%	4.6%	(1.2pt.)	(1.6pt.)
ROE	4.4%	7.5%	9.3%	+4.9pt.	+1.8pt.
Ex-rate (US$)	153	145	151	—	—

On a cash flow basis (after the correction noted above), cash and cash equivalents decreased from +33.1 billion yen at the beginning of FY2025 to +31.6 billion yen at the end of FY2025, with cash flows from operating activities of +8.4 billion yen, cash flows from investing activities of (14.5) billion yen, cash flows from financing activities of +2.9 billion yen and an exchange variance of +1.7 billion yen. Free cash flow was (6.1) billion yen.

Segment Results

In the Energy segment, net sales were flat at 42.5 billion yen: primary batteries increased on steady sales for medical devices and infrastructure applications, while rechargeable batteries decreased due to the discontinuation of prismatic LIB production. Operating profit declined to 2.1 billion yen, as profit for primary batteries decreased due to a sharp increase in raw material cost (silver) despite higher sales; the company also notes that customer adoption of all-solid-state batteries is increasing and that development costs for all-solid-state batteries are rising to achieve larger capacity and higher heat resistance. In Functional Materials, sales and profit increased on adhesive tapes (tapes for construction and for semiconductor manufacturing processes) and on coated separators for HEVs. In Optics & Systems, sales rose but operating profit fell, as lower sales of semiconductor-related products reflecting weakness in the general-purpose semiconductor market and a valuation loss on inventories outweighed higher licensing revenue. In Value Co-Creation Businesses, hydraulic tools increased while health & beauty care products decreased mainly due to the impact of U.S. tariffs in 1H, with performance gradually recovering from 3Q onward.

Segment (JPY billion)	Net Sales FY2024	Net Sales FY2025	Changes	Operating Profit FY2024	Operating Profit FY2025	Changes
Energy	42.5	42.5	0.0	2.4	2.1	(0.3)
Functional Materials	31.8	32.6	0.8	1.2	1.5	0.3
Optics & Systems	35.9	36.4	0.5	4.4	3.5	(0.9)
Value Co-Creation Businesses	19.6	17.9	(1.7)	1.3	0.8	(0.5)

Against the initial operating profit plan of 10 billion yen, the full-year result of 7.9 billion yen represented 79% achievement. By segment, Energy reached 115% of its initial plan of 1.8 billion yen (result 2.1 billion yen), Functional Materials 77% (1.9 → 1.5 billion yen), Optics & Systems 71% (5 → 3.5 billion yen) and Value Co-Creation Businesses 63% (1.3 → 0.8 billion yen). The company cites the sharp rise in raw material costs (silver) from the second half in Energy, the delayed recovery of semiconductor-related products until FY2026 and an inventory valuation loss in Optics & Systems, and the impact of U.S. tariffs in Value Co-Creation Businesses.

FY2026 Forecast

For FY2026, Maxell forecasts net sales of 143.0 billion yen (YoY +10.5%), operating profit of 10.0 billion yen (+26.7%) and net profit of 6.7 billion yen ((18.9%)). The company plans for increased sales and profit driven by growth in existing businesses and the newly joined Maxell Sakura (primary battery business), as well as a recovery in semiconductor-related products and health & beauty care products. Net profit is expected to decline from FY2025, when extraordinary income was recorded from the equity transfer of a consolidated subsidiary. By segment, the forecast calls for net sales of 53.0 billion yen and operating profit of 3.1 billion yen in Energy, 34.7 billion yen and 1.9 billion yen in Functional Materials, 35.7 billion yen and 3.9 billion yen in Optics & Systems (Analog Core Business Group total: 123.4 billion yen and 8.9 billion yen), and 19.6 billion yen and 1.1 billion yen in Value Co-Creation Businesses. Capital expenditure is planned to double from 5.0 billion yen to 10.0 billion yen.

Item (JPY billion)	FY2025 Result	FY2026 Forecast	Changes
Net Sales	129.4	143.0	13.6
Operating Profit (OP ratio)	7.9 (6.1%)	10.0 (7.0%)	2.1
Net Profit (OP ratio)	8.3 (6.4%)	6.7 (4.7%)	(1.6)
ROIC	4.6%	5.5%	+0.9pt.
ROE	9.3%	7.5%	(1.8pt.)
Ex-rate (US$)	151	150	(1.0)
Capital expenditure	5.0	10.0	5.0
Depreciation	5.3	6.5	1.2
R&D expense	6.1	6.0	(0.1)

Regarding the situation in the Middle East, the company anticipates a risk of several hundred million yen on operating profit in 1Q due to soaring raw material costs such as crude oil and naphtha, which it is offsetting through price pass-through. For raw materials that are difficult to procure, recovery measures such as intergroup supply sharing and substitution of materials are being implemented.

Shareholder Returns

The FY2025 annual ordinary dividend was 50 yen per share (interim 25 yen, already paid, and year-end 25 yen). In FY2025 the company implemented a share buyback of 13.2 billion yen in addition to ordinary dividends, steadily carrying out a total payout ratio of over 100%. For FY2026, ordinary dividends are planned at 56 yen per share for the year (interim 28 yen and year-end 28 yen), an increase of 6 yen from the previous fiscal year. All treasury shares acquired on November 19, 2025 — 6,292,200 shares of common stock — are scheduled to be cancelled on May 29, 2026, leaving 40,664,000 shares issued and 3,789,613 treasury shares after the cancellation.

Dividends (ordinary dividends)	FY2025	FY2026 Forecast	Changes
Interim	25 yen (already paid)	28 yen	+3 yen
Year-end	25 yen	28 yen	+3 yen
Total	50 yen	56 yen	+6 yen

Topics

Among the points highlighted for the Analog Core Business Group, Maxell plans to implement price pass-through to offset the increase in raw material costs (silver) in primary batteries, with a new production line scheduled to start operating from 2H to support expanded production for medical devices. In rechargeable batteries, losses will be eliminated due to the end of production of prismatic LIBs, and full-scale sales of all-solid-state batteries will be accelerated, with development of general-purpose modules for FA applications expected to be completed in June. In Functional Materials, a new production line for tapes for construction has started operation, and the company aims to expand sales of tapes for semiconductor manufacturing processes, mainly for AI applications. In Optics & Systems, the company plans increased sales and profit driven by expanded sales of next-generation lenses, expects a gradual recovery in semiconductor DMS, and will transfer the EF2 business to SONOMOM CO., LTD. (scheduled for July 1, 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.