Musashi Seimitsu Industry (7220): FY2025 Results Summary — Operating Profit Up 4.1%, ¥40 Annual Dividend Maintained

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Musashi Seimitsu Industry Co., Ltd. (Securities Code: 7220) announced its FY2025 fourth quarter cumulative (Apr.-Mar.) financial results on May 13, 2026. Net sales were 3,472 hundred million yen (up 0.0% year on year), operating profit was 205 hundred million yen (up 4.1%), ordinary profit was 202 hundred million yen (up 12.5%), and net income was 12 hundred million yen (down 83.8%). EBITDA came to 388 hundred million yen (up 0.7%). For FY2026, the company forecasts net sales of 3,350 hundred million yen and operating profit of 185 hundred million yen, and plans an annual dividend of 40 yen per share, unchanged from FY2025.

Note: In the company’s presentation, FY2025 refers to the fiscal year from April 2025 to March 2026 (balance sheet date: March 31, 2026), and FY2026 refers to the following fiscal year. All figures below are transcribed as reported in the presentation, in units of 100 million yen.

Consolidated Results (Full-Year Actual)

Net sales were nearly flat year on year at 3,472 hundred million yen (+1). Operating profit rose 8 to 205 hundred million yen, with the operating profit ratio improving from 5.7% to 5.9%. By factor, the change in operating profit consisted of FX ▲1, volume/improvement +19, one-time items ▲11, and other +1. Ordinary profit increased 23 to 202 hundred million yen, helped by the operating profit increase (+8), finance income/expense (+1), and the impact of FX (+24), partly offset by others (▲10). Net income fell 65 to 12 hundred million yen; the decrease from ordinary profit reflected extraordinary gain/loss (▲83), income tax (▲5), and non-controlling interest (+1).

Item	FY2024 (12 months)	FY2025 (12 months)	Change	Ratio
Net Sales	3,471	3,472	+1	+0.0%
Operating Profit	197	205	+8	+4.1%
(Operating profit ratio)	(5.7%)	(5.9%)	–	–
Ordinary Profit	179	202	+23	+12.5%
Net Income	77	12	▲65	▲83.8%
EBITDA	386	388	+2	+0.7%

Among management indicators, ROE was 1.1% (FY2024: 6.8%), ROIC was 7.0% (FY2024: 6.9%), the equity ratio was 40.5% (FY2024: 40.2%), and PBR was 1.41 (FY2024: 1.40).

Segment Results

By segment, net sales increased in Japan (400 to 415) and the Americas (1,045 to 1,110), while Asia (819 to 807), China (316 to 291), and Europe (892 to 849) decreased. By customer, sales to Honda rose from 1,749 (50%) to 1,760 (51%), while sales to other global customers declined from 1,722 (50%) to 1,710 (49%). By business, powertrain (PT) sales fell from 2,210 to 2,170, two-wheeler (2W) sales rose from 939 to 984, and linkage & suspension (LS) sales fell from 321 to 316.

Segment	FY2024 Net Sales	Share	FY2025 Net Sales	Share
Japan	400	11%	415	12%
Americas	1,045	30%	1,110	32%
Asia	819	24%	807	23%
China	316	9%	291	8%
Europe	892	26%	849	25%
Total	3,471	100%	3,472	100%

In the operating profit bridge by segment, Japan (▲7) and the Americas (▲5) were negative factors, while Asia (+4), China (+6), and Europe (+10) were positive factors, taking operating profit from 197 in FY2024 to 205 in FY2025.

FY2026 Forecast

For FY2026, the company forecasts net sales of 3,350 hundred million yen (down 3.5% year on year), operating profit of 185 hundred million yen (down 9.9%), ordinary profit of 160 hundred million yen (down 20.9%), and net income of 65 hundred million yen (up 414.2%). EBITDA is forecast at 370 hundred million yen (down 4.9%). The assumed exchange rates include USD 150.00 (FY2025 actual: 151.10), EUR 175.00 (175.57), and CNY 21.00 (21.35). The company plans investment of 350 hundred million yen (FY2025 actual: 281) and depreciation cost of 185 hundred million yen (FY2025 actual: 183).

Item	FY2025 Actual	FY2026 Forecast	Change	Ratio
Net Sales	3,472	3,350	▲122	▲3.5%
Operating Profit	205	185	▲20	▲9.9%
(Operating profit ratio)	(5.9%)	(5.5%)	–	–
Ordinary Profit	202	160	▲42	▲20.9%
Net Income	12	65	+53	+414.2%
EBITDA	388	370	▲18	▲4.9%

Shareholder Returns

The dividend for FY2025 was 40 yen per share (interim 25 yen / year-end 15 yen). For FY2026, the company forecasts an annual dividend of 40 yen per share (interim 20 yen / year-end 20 yen), unchanged from FY2025.

Item	FY2025 Actual	FY2026 Forecast
Dividend per share (Interim/Year-end)	40 yen (25 yen / 15 yen)	40 yen (20 yen / 20 yen)

Business Topics — Mobility and Energy Solution

In the mobility business, the company presented regional strategies of expanding HEV production capacity in North America, strengthening sales expansion to Chinese OEMs, and accelerating growth of the e-Mobility business in India. In North America, Musashi Auto Parts Canada is expanding production capacity for gears and shafts, with completion scheduled by the end of 2026 and an expanded floor area of +8,000 square meters. In India, a letter of intent was signed on April 30, 2026 with Kinetic Green Energy & Power Solutions Limited to establish a long-term strategic partnership; from December 2026, Musashi e-Axles are scheduled to be supplied for next-generation two-wheeler EV platforms.

In China, the sales mix of local Chinese OEMs at MAP-CH rose from 0% in FY2020 to 18% in FY2025, with a target of 40% in FY2028. New orders in FY2025 included a suspension ball joint from Geely (FAWER) — the first chassis-component order from Geely, with deliveries beginning in May 2026 — as well as orders from BYD and INOVANCE.

In the energy solution business, the company noted that capacitors are becoming a standard component in AI data centers, citing the shift in AI models toward inference, the official announcement of capacitor adoption in the next-generation “Vera Rubin”, and intensifying peak power constraints for AI power supply. At the Hokuto Plant in Yamanashi, capacity expansion for the hybrid super capacitor has faced constraints, and supply is expected to be tight from Q1 due to strong order growth; the company is pursuing concentration of engineering resources, improvement in productivity, and improvement in production yield. At the Minami-Alps Plant, the production start has been rescheduled from fall 2026 to early 2027, building a more resilient production system for 2027 full-scale demand.

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.