KOA Corporation (6999): FY2025 Results Summary — Net Sales Up 12.7% with Operating Profit Up 210%

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KOA Corporation (6999) reported consolidated net sales of ¥72.3 billion for the fiscal year ended March 31, 2026, up 12.7% year on year. Operating profit rose 210.0% to ¥3.7 billion, ordinary profit rose 320.1% to ¥5.2 billion, and profit attributable to owners of parent increased ¥3.7 billion to ¥4.0 billion. Note: the company labels this fiscal year FY03/26 in its materials; this site classifies the same period as FY2025. Figures in this article are based on the company’s Performance Review for the Fiscal Year Ended March 31, 2026, which reflects the numerical data corrections the company disclosed on June 5, 2026.

Consolidated Results (Full-Year Actual)

Net sales increased ¥8.2 billion year on year to ¥72.3 billion. Operating profit was ¥3.7 billion (operating margin 5.0%, up from 1.8% in FY03/25), ordinary profit was ¥5.2 billion, and profit attributable to owners of parent was ¥4.0 billion, compared with ¥0.3 billion in FY03/25. Actual exchange rates were ¥151.06 to the U.S. dollar (FY03/25: ¥152.56) and ¥175.55 to the euro (FY03/25: ¥163.65). In the appendix, the company reports FY03/26 operating cash flow of ¥9.1 billion, investing cash flow of ¥(7.1) billion, free cash flow of ¥2.0 billion, and cash and cash equivalents of ¥27.4 billion.

Item	FY03/26 (Billions of ¥)	FY03/25 (Billions of ¥)	YoY (Billions of ¥)	YoY (%)
Net sales	72.3	64.1	+8.2	+12.7
Operating profit	3.7	1.2	+2.5	+210.0
Ordinary profit	5.2	1.2	+4.0	+320.1
Profit (loss) attributable to owners of parent	4.0	0.3	+3.7	–

Sales by Product, Region, and Application

The company discloses net sales breakdowns on a quarterly basis. In FY03/26 Q4, net sales were ¥19,198 million. By product, resistors accounted for 93% of Q4 net sales (¥17,945 million, up 19.1% year on year), with safety devices at 2%, hybrid ICs at 2%, and other at 3%. By region, Asia accounted for 40% of Q4 net sales (up 20.9% year on year), Japan 25% (up 15.5%), North America 15% (up 10.9%), and Europe 20% (up 17.6%). By application, automotive accounted for 52% of Q4 net sales, and growth was led by communication (up 46.7% year on year) and power supply (up 40.7%).

Application	FY03/26 Q4 net sales (Millions of ¥)	Share of Q4 net sales	YoY
Automotive	9,930	52%	+9.7%
Industrial equipment	2,207	11%	+26.3%
Communication	1,635	9%	+46.7%
Power supply	1,155	6%	+40.7%
Consumer electronics	860	4%	+11.7%
Other	3,411	18%	+19.0%
Total	19,198	–	–

Forecast for the Fiscal Year Ending March 31, 2027

For the fiscal year ending March 31, 2027 (FY03/27), the company forecasts net sales of ¥77.4 billion (up 7.1%), operating profit of ¥2.8 billion (down 22.4%), ordinary profit of ¥3.3 billion (down 36.8%), and profit attributable to owners of parent of ¥4.8 billion (up 21.0%), with ROE of 5.3%. The company states that sales increased for automotive applications in Japan and AI server-related demand in Asia, and that while price adjustments are being implemented to address rising raw material costs, operating profit decreased due to a time lag before these measures take effect. A relocation compensation gain related to the China factory was recorded as extraordinary income, and the impact of the Middle East conflict has not been factored into the forecast. The operating profit analysis attributes the change from ¥3.7 billion in FY03/26 to ¥2.8 billion in FY03/27 to net sales (+1.7), exchange rate (+0.7), rising material costs (-2.2), other (-0.1), and fixed cost (-1.1), in billions of yen. The assumed exchange rates are ¥157.00 to the U.S. dollar and ¥184.00 to the euro.

Item	FY03/27 forecast (Billions of ¥)	FY03/26 (Billions of ¥)	YoY (%)
Net sales	77.4	72.3	+7.1
Operating profit	2.8	3.7	(22.4)
Ordinary profit	3.3	5.2	(36.8)
Profit (loss) attributable to owners of parent	4.8	4.0	+21.0
ROE	5.3%	4.7%	–

Shareholder Returns

The company’s dividend policy is, from the perspective of comprehensive capital allocation, to prioritize reinvestment in the business and optimization of shareholders’ equity, while continuing to provide shareholder returns, including dividends. For the time being, the annual dividend will be set at no less than ¥30 per share, with a consolidated dividend payout ratio of around 30% as a reference. For FY03/26, the annual dividend was ¥32 per share (interim ¥15, year-end ¥17, an increase of ¥2), with a dividend payout ratio of 30.1%. For FY03/27, the company forecasts an annual dividend of ¥39 per share (interim ¥19.5, an increase of ¥2.5, and year-end ¥19.5), with a payout ratio of 30.3%.

Item	FY03/26 (actual)	FY03/27 (forecast)
Interim dividend	¥15/ share	¥19.5/ share
Year-end dividend	¥17/ share	¥19.5/ share
Annual dividend	¥32/ share	¥39/ share
Dividend payout ratio	30.1%	30.3%

Growth Markets and Topics

In AI-related markets, the company reports key AI-related revenue of approximately ¥3.6 billion for FY03/2026, consisting of communication applications (server body, optical transceivers, and memory modules) at approximately ¥2.0 billion, power supply at approximately ¥0.7 billion, and semiconductor manufacturing equipment in industrial equipment at approximately ¥0.9 billion. The company forecasts this revenue to be up 20% year on year in FY03/2027. Resistor demand for AI server racks in FY03/2027 is estimated at approximately 130 billion chip resistors per year, based on assumptions of approximately 350,000 server racks per year and approximately 360,000 chip resistors per rack. The company cites a server market CAGR (2024-2031) of 5.6%, with 18.8% for AI servers.

On new plant operations, KOA ELECTRONICS (TAICANG) CO.LTD. in Taicang City, Jiangsu Province, China was completed in July 2024; the transfer from the old plant was completed in September 2025 and shipments started in October 2025. The new factory of KOA DENKO (MALAYSIA) SDN.BHD. in Malacca, Malaysia was completed in April 2025, with shipments scheduled to begin in October 2026, building a smart factory utilizing MES. In corporate governance, the company introduced a delegated executive officer system in June 2024, transitioned to ROIC-based management with full implementation of management focused on capital cost and share price in February 2025, appointed an outside director as Chair of the Board in June 2025, and plans for outside directors to constitute a majority of the Board (5 out of 8 members) in June 2026, alongside a major overhaul of the executive compensation system.

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.