Icom (6820): FY2025 Results Summary — Profit Decline on U.S. Tariff Headwinds; New Medium-Term Plan 2030

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

Icom Incorporated (6820), a manufacturer of land mobile, amateur, marine, and avionics wireless communication equipment, reported net sales of 36,959 million yen for the fiscal year ended March 31, 2026, down 1.4% year on year, with operating profit of 2,913 million yen, down 21.7%. Profit attributable to owners of parent was 2,665 million yen, down 9.7%. For the fiscal year ending March 2027, the company forecasts net sales of 37,500 million yen and operating profit of 3,800 million yen, and plans a dividend increase to 87 yen per share. The company also announced its new four-year “Medium-Term Management Plan 2030,” targeting net sales of 43.0 billion yen and an operating profit ratio of 10% in FY March 2030. Note: Icom’s materials label the fiscal year ended March 31, 2026 as “FY March 2026”; this site classifies it as FY2025, and the tables below follow the labels used in the materials.

Consolidated Results (Full-Year Actual)

Net sales came to 36,959 million yen, down 1.4% from 37,468 million yen in the previous fiscal year. Gross profit declined 2.7% to 16,196 million yen, while SG&A expenses rose to 13,283 million yen, resulting in operating profit of 2,913 million yen (operating margin of 7.9%, versus 9.9% a year earlier). Ordinary profit was 3,812 million yen, down 2.3%. R&D expense was 4,256 million yen, up 6.3% year on year. The average exchange rates for the period were 149.97 yen per U.S. dollar (versus 152.72 yen in the prior year) and 173.40 yen per euro (versus 163.94 yen).

Item (Million yen)	FY Mar 2025	FY Mar 2026	Change
Net Sales	37,468	36,959	▲1.4%
Gross profit	16,649	16,196	▲453 (▲2.7%)
SG&A Expenses	12,927	13,283
Operating profit	3,721	2,913	▲808 (▲21.7%)
Operating profit ratio	9.9%	7.9%
Ordinary Profit	3,902	3,812	▲90 (▲2.3%)
Profit attributable to owners of parent	2,951	2,665	▲286 (▲9.7%)

Sales by Product Category

Land mobile radio sales decreased 4.3% year on year to 16,542 million yen. In Japan, revenue exceeded the previous year’s level on growing demand and the acquisition of government-related projects as part of BCP measures, but in export markets customers continued to hold back on purchases of wireless communication equipment due to uncertainty caused by U.S. tariff policies. Amateur radio sales fell 18.0% to 5,529 million yen, as consumers’ growing tendency to not spend in response to rising prices and a hold on purchases ahead of new product launches weighed on demand despite well-performing new products. Marine radio sales increased 9.8% to 3,993 million yen on a surge in demand from contracts with coast guards overseas and equipment replacements prompted by regulatory revisions. Others (options etc.) increased 11.2% to 10,893 million yen, helped by contracts with fire departments, other government agencies, and educational institutions.

Category (Million yen)	Year ended March 31, 2025	Year ended March 31, 2026
Net Sales	37,468	36,959
Land Mobile	17,289	16,542
Amateur	6,745	5,529
Marine	3,635	3,993
Others (Options etc.)	9,798	10,893

Segment Results

By geographic segment (based on the location of group companies), Japan posted net sales of 21,177 million yen, up 0.2% year on year, accounting for 57.3% of total sales. North America declined 6.6% to 11,338 million yen (30.7% of sales), Europe (EMEA) rose 6.0% to 2,788 million yen (7.5%), and Asia/Oceania/Other rose 5.1% to 1,655 million yen (4.5%). On a sales-destination basis, sales in Japan increased 8.2% to 13,525 million yen, the Americas decreased 6.9% to 11,311 million yen, EMEA increased 5.3% to 6,611 million yen, and Asia & Oceania decreased 15.8% to 5,510 million yen; the composition of net sales by destination was 36.6% for Japan, 30.6% for the Americas, 17.9% for EMEA, and 14.9% for Asia/Oceania. In the Americas, sales of land mobile equipment declined due to factors such as the suspension of business operations from government budget freezes and the impact of tariff policies, while marine equipment remained on par with the previous year, partly on military contracts in South America.

Segment (Million yen)	FY March 2025	Ratio	FY March 2026	Ratio	Change
Net Sales	37,468	100.0%	36,959	100.0%	△1.4%
Japan	21,125	56.4%	21,177	57.3%	0.2%
North America	12,137	32.4%	11,338	30.7%	△6.6%
Europe (EMEA)	2,630	7.0%	2,788	7.5%	6.0%
Asia/Oceania/Other	1,575	4.2%	1,655	4.5%	5.1%

FY March 2027 Forecast

For the fiscal year ending March 2027, Icom forecasts net sales of 37,500 million yen, operating profit of 3,800 million yen (operating profit ratio of 10.1%), and net income attributable to owners of the parent of 3,100 million yen (net income ratio of 8.3%). The plan assumes exchange rates of 153.00 yen per U.S. dollar and 180.00 yen per euro. The company will focus on capturing growing domestic demand for land mobile wireless communication equipment and generating new demand overseas through customized solutions. Amid rising geopolitical risks, it also plans to pursue defense-related business, initially aiming to launch terminals compatible with the next-generation defense satellite communication system network “MA-DNX” by 2027. The investment plan calls for capital investment of 1,284 million yen, depreciation and amortization of 1,115 million yen, and R&D expense of 4,447 million yen.

Item	FY March 2027 Forecast	FY March 2026 (Actual)
Net Sales	37,500 Million Yen	36,959 Million Yen
Operating Profit	3,800 Million Yen	2,913 Million Yen
Net Income Attributable to Owners of the Parent	3,100 Million Yen	2,665 Million Yen
Capital Investment	1,284 Million Yen	1,237 Million Yen
Depreciation & Amortization	1,115 Million Yen	959 Million Yen
R&D Expense	4,447 Million Yen	4,256 Million Yen

Shareholder Returns

The annual dividend for the fiscal year ended March 2026 was 75 yen per share (25 yen at the half year and 50 yen at year end), for a dividend payout ratio of 40.4%. For the fiscal year ending March 2027, the company plans a dividend increase to 87 yen per share (25 yen at the half year and 62 yen at year end), for a planned payout ratio of 40.3%. Under its shareholder return policy, Icom will continue to pay a minimum annual dividend of 60 yen per share or a consolidated dividend payout ratio of 40%, whichever is higher, and will consider further shareholder returns as appropriate if profits exceed expectations.

	Half of Year	End of Year	Full Year	Dividend Payout Ratio
FY March 2025 Result	25 Yen	58 Yen	83 Yen	40.4%
FY March 2026 Result	25 Yen	50 Yen	75 Yen	40.4%
FY March 2027 Plan	25 Yen	62 Yen	87 Yen	40.3%

Medium-Term Management Plan 2030

Icom announced its “Medium-Term Management Plan 2030,” a four-year plan covering FY March 2027 through FY March 2030 under the theme “A New Turning Point ~Towards a 100-year-old Company~.” The plan is built on four key factors: entry into the public infrastructure sector (expanding into the MC-PTT/MCX market, aiming to begin generating revenue in the second half of 2028), acceleration of business partnerships, promotion of M&A (with a target of one acquisition per year, primarily through “acquihiring”), and entry into the defense communications market (aiming to launch terminals compatible with the “MA-DNX” network by 2027). For FY March 2030, the plan targets net sales of 43.0 billion yen, operating profit of 4.3 billion yen, and an operating profit ratio of 10%, and aims to increase the proportion of recurring revenue to 10% of total revenue. The investment plan totals 37 billion yen over the period, comprising capital investment of 12 billion yen, R&D of 18 billion yen, replacement of existing equipment of 5 billion yen, and new business of 2 billion yen. The company also continues to target an ROE of 5.0% or higher and a PBR of 1.0x or higher, compared with an ROE of 3.8% and a PBR of 0.61x in FY 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.