Cosel (6905): FY2025 Results Summary — Operating Loss on Lower Sales as Orders Rebound Sharply; PRBX Share Transfer and Higher DOE

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Cosel Co., Ltd. (TSE Prime: 6905), whose product lineup spans unit power supplies, on-board power supplies, noise filters and PRBX products, reported net sales of 25,046 million yen for FY2025, down 7.4% year on year, and an operating loss of 695 million yen. A loss on liquidation of affiliates of 3,630 million yen related to the PRBX share transfer was recorded as an extraordinary loss, resulting in a net loss attributable to owners of parent of 3,406 million yen. Orders, by contrast, rebounded sharply to 27.8 billion yen on strong demand for semiconductor production equipment related to generative AI GPUs, and for FY2026 the company guides for net sales of 28,875 million yen (+15.3%) and a return to an operating profit of 1,335 million yen, alongside a dividend increase to ¥60 under a DOE floor raised from 3.5% to 4.5%.

Note: In line with the company’s own materials, FY2025 refers to the fiscal year ended May 20, 2026 (the deck describes FY2025 as the fiscal year ending 2026/5), and FY2026 refers to the fiscal year ending 2027/5.

Consolidated Results (Full-Year Actual)

Net sales declined 2,006 million yen (-7.4%) year on year to 25,046 million yen, though they exceeded the revised forecast by 927 million yen (3.8%). Mainly in Japan, demand for semiconductor production equipment was strong, and centered on FA-related applications, customers’ inventory drawdown progressed, showing a recovery trend from the second half. With the decline in net sales, the company worked to cut expenses, but the heavy fixed-cost burden resulted in an operating loss of 695 million yen (versus an operating profit of 628 million yen in FY2024). Ordinary profit fell 63.9% to 267 million yen. Due to the PRBX share transfer, a loss on liquidation of affiliates was recorded, resulting in a net loss.

Item (JPY million)	FY2024 Result	FY2025 Result	YoY Change	YoY %	vs. Revised Forecast
Net sales	27,052	25,046	-2,006	-7.4%	+927 (3.8%)
Gross profit	7,207	6,036	-1,171	-16.3%	–
SG&A	6,579	6,731	+152	2.3%	–
Operating profit	628	-695	-1,323	–	+118
Operating margin	2.3%	-2.8%	-5.1pt	–	+0.6pt
Ordinary profit	740	267	-473	-63.9%	+220
Profit attributable to owners of parent	-113	-3,406	-3,292	–	-3,436

By destination, the year-on-year change in net sales (25.0 billion yen, -2.0 billion yen, -7.4%) breaks down as follows: in Japan, although customer demand recovery and inventory drawdown are progressing, sales declined; in Asia, sales have been rising on the recent recovery in orders but increased only slightly; in North America, sales are on an upward trend as orders recovered from the prior 3Q onward; in Europe, performance was sluggish amid the continuing demand adjustment phase and customer order adjustments.

Factor	Amount (million yen)
FY2024 net sales	27,052
Japan	-2,522
Asia	71
North America	295
Europe	-504
F/X impact	653
FY2025 net sales	25,046

Orders and Balance Sheet

Full-year orders received in FY2025 came to 27.8 billion yen (of which PRBX 5.2 billion yen). Orders related to semiconductor production equipment for generative AI GPU applications rebounded sharply, and inventory drawdown for FA and medical equipment progressed, with the recovery from FY2025 3Q onward exceeding expectations. On the balance sheet, total assets stood at 60.5 billion yen (+0.5 billion yen), with cash and deposits of 28.3 billion yen (+0.5 billion yen) and inventories of 9.2 billion yen (-2.0 billion yen); the equity ratio was 86.1% (-7.0pt).

FY2026 Forecast

For FY2026 (fiscal year ending 2027/5), the company forecasts net sales of 28,875 million yen (+15.3% YoY), driven by higher demand for semiconductor production equipment-related products and price increases from this fiscal year, and an operating profit of 1,335 million yen (operating margin 4.6%) on earnings improvement through price pass-through of higher material costs. Ordinary profit is forecast at 1,539 million yen (+475.9%) and profit attributable to owners of parent at 1,604 million yen. Orders received are forecast at 29.4 billion yen (FY2025 actual: 27.8 billion yen). Assumed average exchange rates are ¥155.00 to the U.S. dollar, ¥182.50 to the euro and ¥16.50 to the Swedish krona.

Item (JPY million)	FY2025 Result	FY2026 Forecast	1H	2H	YoY Change	YoY %
Net sales	25,046	28,875	14,201	14,674	3,828	+15.3%
Operating profit	-695	1,335	304	1,031	2,030	–
Operating margin	-2.8%	4.6%	2.1%	7.0%	+7.4pt	–
Ordinary profit	267	1,539	412	1,127	1,271	+475.9%
Profit attributable to owners of parent	-3,406	1,604	562	1,042	5,010	–
USD / JPY	151.95	155.00	–	–	3.05	–
EUR / JPY	176.74	182.50	–	–	5.76	–
SEK / JPY	16.19	16.50	–	–	0.31	–

Business Portfolio Optimization through PRBX Share Transfer

The company will transfer its shares in Powerbox International AB (PRBX), its 100% subsidiary in Sweden, with a scheduled transfer date of 2026/8; product sales and procurement transactions will continue after the transfer. Against the background of a changing competitive environment in the European market, expanding growth investment needs and the need for improved capital efficiency, the expected effects include concentration of management resources on priority areas, improved capital efficiency, improved profitability and enhanced corporate value. In FY2025, a loss on liquidation of affiliates of 3,630 million yen was recorded as an extraordinary loss. In FY2026, 1Q includes PRBX results up to the scheduled transfer date, and from 2Q onward profitability is expected to improve through the exclusion of loss-making businesses. As a reference, PRBX’s most recent results (FY2025) were net sales of SEK 324 million, an operating loss of SEK 35.6 million and an operating margin of -11.0%.

Shareholder Returns

The company positions the enhancement of medium- to long-term corporate value and the strengthening of shareholder returns as key management priorities. Under the 11th Medium-Term Plan it will continue its progressive dividend policy (in principle, no dividend cut) and, to further strengthen shareholder returns, raise the lower limit of DOE (Dividend on Equity) from 3.5% to 4.5% from FY2026. The FY2025 annual dividend was ¥55 per share (interim ¥27 + year-end ¥28), with DOE of 4.2%, and for FY2026 the company plans an annual dividend of ¥60 (interim ¥30 + year-end ¥30), a ¥5 dividend increase, with DOE planned at 4.8%. The company has also decided to introduce a shareholder benefit program for shareholders who have continuously held 300 shares (three trading units) or more for at least one year, offering foods and local specialties such as crafts from the Hokuriku region, centered on Toyama Prefecture.

Fiscal Year	Interim	Year-end	Full-year
FY2025 (Actual)	¥27	¥28	¥55
FY2026 (Forecast)	¥30	¥30	¥60

Topics — FY2026 Business Direction and LITEON Alliance

For FY2026, the company targets an increase in sales and profit driven by higher demand for semiconductor manufacturing equipment and inventory drawdown, together with earnings improvement through price pass-through of rising materials cost. In the LITEON business alliance, it will develop COSELSYNC. products to realize business alliance synergies, adding COSEL development resources to accelerate this, drive sales strategies to expand sales of COSELSYNC. products, and leverage LITEON supply chain information to develop new suppliers and reduce materials cost. In FY2025, the joint-development product with LITEON, COSELSYNC., experienced development delays, so order acquisition is expected from the next fiscal year onward.

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.