AIPHONE (6718): FY2025 Results Summary — Lower Sales and Profits as North America Slump Worsens Sales Mix

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

Note: AIPHONE does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. This site classifies the company’s most recent completed fiscal year (the fiscal year ended March 31, 2026) as FY2025 in the title; labels in the body follow the materials.

AIPHONE’s consolidated results for the fiscal year ended March 31, 2026 were net sales of ¥62.98 billion (down 0.5% year on year), operating profit of ¥2.80 billion (down 26.5%), ordinary profit of ¥3.17 billion (down 23.8%), and profit attributable to owners of parent of ¥2.46 billion (down 31.9%). In the domestic market, sales increased mainly in the multi-family housing market and the care market, while in the overseas market North American sales fell sharply and consolidated net sales declined. In addition to the sales decline, every profit line fell sharply year on year due to a worsening sales mix caused by a lower share of sales from the relatively high-margin overseas market, and to higher expenses such as development costs and investment in human resources. For the fiscal year ending March 31, 2027, the company has presented a plan of net sales of ¥65.80 billion and operating profit of ¥4.00 billion.

Consolidated Results (Fiscal Year Ended March 31, 2026)

In the domestic market, sales increased mainly in the multi-family housing market and the care market, but in the overseas market North American sales fell sharply and consolidated net sales declined. In addition to lower profits from the decline in sales, every profit line posted a sharp year-on-year decline due to a worsening sales mix caused by a lower share of sales from the relatively high-margin overseas market, and to increased expenses such as development costs and investment in human resources.

Item	FY3/2025 Actual	FY3/2026 Initial Plan	FY3/2026 Actual	YoY	vs. Plan
Net sales	¥63.31 billion	¥65.40 billion	¥62.98 billion	▲0.5%	▲3.7%
Operating profit (operating margin)	¥3.81 billion (6.0%)	¥4.50 billion (6.9%)	¥2.80 billion (4.4%)	▲26.5%	▲37.7%
Ordinary profit	¥4.16 billion	¥5.00 billion	¥3.17 billion	▲23.8%	▲36.6%
Profit attributable to owners of parent	¥3.61 billion	¥3.70 billion	¥2.46 billion	▲31.9%	▲33.3%

Results by Market (Region)

Sales in the domestic market rose 4.6% year on year to ¥47.44 billion. In the multi-family housing market, sales increased for new construction for rental condominiums and for renewal work for condominiums for sale, and in the care market sales increased overall on higher renewal sales. In detached housing, new-construction sales increased on last-minute demand ahead of price revisions to mainstay products, but renewal sales declined due to delivery delays for some products, leaving the segment down 1.5% year on year overall. Sales in the overseas market fell 13.5% year on year to ¥15.53 billion. The mainstay North American market declined 19.3% year on year in yen terms due to inventory adjustments at major sales distributors, although actual demand from end customers has been maintained. The European market declined 2.3% year on year in yen terms amid stagnation in the European economy and intensified price competition with Chinese products.

Market	FY3/2025	FY3/2026	YoY
Domestic market	¥45.35 billion	¥47.44 billion	Up 4.6%
— Detached housing	¥4.54 billion	¥4.47 billion	▲1.5%
— Multi-family housing	¥30.52 billion	¥31.24 billion	2.3%
— Care	¥7.62 billion	¥8.68 billion	13.9%
Overseas market	¥17.95 billion	¥15.53 billion	▲13.5%
— North America (yen basis)	¥11.77 billion	¥9.50 billion	▲19.3%
— Europe (yen basis)	¥4.33 billion	¥4.23 billion	▲2.3%

Factors Behind Changes in Operating Profit

Operating profit decreased from ¥3.81 billion in the previous fiscal year to ¥2.80 billion. The factors were the sharp decline in sales in the North American market, the cost increase caused by the yen’s depreciation against the Thai baht, and higher expenses from multiple large-scale development projects proceeding concurrently.

Full-Year Forecast (Fiscal Year Ending March 31, 2027)

For the fiscal year ending March 31, 2027, the company forecasts consolidated net sales of ¥65.80 billion (up 4.5% year on year), operating profit of ¥4.00 billion (up 42.7%, with an operating margin of 6.1%), ordinary profit of ¥4.50 billion (up 41.9%), and profit attributable to owners of parent of ¥3.20 billion (up 29.8%). On sales, the company aims to expand renewal sales in Japan against the backdrop of security needs, and overseas it aims for a recovery in North American sales and expanded sales of IP network-compatible products, for which demand is strong. On profits, in addition to an improvement in the sales mix from the recovery of sales in the relatively high-margin overseas market, the company says it will implement price revisions as appropriate while taking into account market trends in Japan and overseas.

Item	FY3/2026 Actual	FY3/2027 Plan	YoY
Net sales	¥62.98 billion	¥65.80 billion	4.5%
Operating profit (operating margin)	¥2.80 billion (4.4%)	¥4.00 billion (6.1%)	42.7%
Ordinary profit	¥3.17 billion	¥4.50 billion	41.9%
Profit attributable to owners of parent	¥2.46 billion	¥3.20 billion	29.8%

Shareholder Returns

On shareholder returns, the company has indicated a policy of maintaining an annual dividend of ¥130 per share in order to respond to shareholders’ ongoing support and further enhance profit returns. The annual dividend for the fiscal year ending March 31, 2027 is ¥130 (forecast).

Quantitative Targets of the Medium-Term Management Plan (8th Medium-Term Management Plan)

The fiscal year ended March 31, 2026 was the final year of the 8th Medium-Term Management Plan. Against the quantitative targets, operating profit came in at ¥2.8 billion versus a target of ¥5.6 billion, the consolidated operating margin at 4.5% versus a target of 8.8%, consolidated net sales at ¥62.98 billion versus a target of ¥63.5 billion, and ROE at 3.5% versus a target of 6.4%, all falling short; on the other hand, the CO2 emissions reduction target of 25% was achieved, with a result of 25% or more.

Item	Plan (Target)	Result (FY3/2026 Actual)	Status
Operating profit	¥5.6 billion	¥2.8 billion	Not achieved
Consolidated operating margin	8.8%	4.5%	Not achieved
Consolidated net sales	¥63.5 billion	¥62.98 billion	Not achieved
ROE	6.4%	3.5%	Not achieved
CO2 emissions reduction	25%	25% or more	Achieved

As for the next plan, the 9th Medium-Term Management Plan, the company has decided to postpone its announcement, judging that at this point the validity of medium-term numerical targets cannot be sufficiently ensured, given external factors such as uncertainty over the procurement of oil and oil-derived products stemming from the situation in the Middle East and the sharp surge in semiconductor memory prices, which raise concerns about the impact of higher component prices on earnings, operating constraints at the Thailand and Vietnam plants, and changes to delivery timing due to schedule delays at construction sites. The company says it will announce the plan promptly once reasonable earnings projections become possible.

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.