Press Kogyo (7246): FY2025 Results Summary — Record Net Profit on Truck and Construction Machinery Parts Demand

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

Press Kogyo Co., Ltd. (TSE Prime: 7246) reported net sales of 202,167 million yen for FY2025 (the fiscal year ended March 31, 2026), up 12,284 million yen or 6.5% year on year, with operating profit of 13,509 million yen (+40.0%), ordinary profit of 14,026 million yen (+36.5%) and profit attributable to owners of parent of 8,475 million yen (+39.4%). The company states that sales and all profit items increased year on year and that profit attributable to owners of parent reached a record high, driven by sales increases in the automobile and construction machinery businesses and by streamlining benefits. All lines also came in above the February 10 forecast, with net sales +1.1% and operating profit +12.6% versus that guidance. The annual dividend was set at 37.0 yen per share, 2 yen above the previous forecast, giving a total return ratio of 60.7% and DOE of 3.1%.

Consolidated Results (Full-Year Actual)

The FY2025 results slide compares the FY2024 actual, the forecast announced on February 10 and the FY2025 actual. Assumed exchange rates moved from 158.18 to 156.53 for USD, from 4.66 to 4.96 for THB, from 21.67 to 22.36 for RMB and from 14.39 to 17.05 for SEK. Of the 12,284 million yen increase in net sales, the company attributes 5,979 million yen to foreign exchange gains and losses and 6,305 million yen to the difference excluding foreign exchange; for operating profit the split is +284 million yen and +3,579 million yen. On the operating profit bridge, the company lists sales mix/capacity utilization at +1,827 million yen, the effect of depreciation/amortization at +619 million yen, the effect of energy costs at +353 million yen, the effect of the FX rate at +284 million yen and streamlining at +780 million yen. Extraordinary income and losses were -606 million yen, which the company says include a loss on retirement of property associated with facility reconstruction in Japan (non-consolidated) and a loss on liquidation of PKM.

Item (Millions of Yen)	FY2024 Actual	FY2025 Forecast (Feb. 10)	FY2025 Actual	YoY Change
Net Sales	189,883	200,000	202,167	+12,284 / +6.5%
Operating Profit	9,646	12,000	13,509	+3,863 / +40.0%
Ordinary Profit	10,279	12,500	14,026	+3,747 / +36.5%
Profit attributable to owners of parent	6,080	7,000	8,475	+2,395 / +39.4%
Earnings per share	61.0Yen	70.9Yen	85.9Yen	24.9Yen
Dividend per share	32.0Yen	35.0Yen	37.0Yen	5.0Yen
Interim dividend	13.0Yen	16.0Yen	16.0Yen	3.0Yen
ROE	5.5%	6.1%	7.2%	+1.7%
DOE	2.9%	3.0%	3.1%	+0.2%

Results by Region

By region, the company notes higher sales year on year and above the previous forecast at Press Kogyo (non-consolidated) on a higher-than-expected volume increase; flat sales in Thailand as increased sales from new orders offset a volume decrease; lower sales in the U.S. on the impact of downsizing the panel business; lower sales in Indonesia on weakening demand; and higher sales in Sweden and China on volume increases. Excluding foreign exchange gains and losses of +5,979 million yen, group net sales after exclusion were 196,188 million yen, +6,305 million yen or +3.3% year on year.

Region (Millions of Yen)	FY2024 Actual	FY2025 Actual	YoY Change	YoY %
Press Kogyo	71,489	78,053	+6,564	+9.2%
Domestic Subsidiaries	32,817	33,022	+205	+0.6%
Thailand	72,815	76,896	+4,081	+5.6%
U.S.	22,017	20,615	-1,402	-6.4%
Indonesia	5,437	5,201	-236	-4.3%
Sweden	7,764	9,978	+2,214	+28.5%
China	1,631	1,931	+300	+18.4%
Elimination/Adjustment	-24,087	-23,529	+558	–
Total	189,883	202,167	+12,284	+6.5%

Results by Product

All product categories increased sales year on year. Large Truck Parts (frames and axles for heavy- and medium-duty trucks) benefited from strong customer sales in Japan (non-consolidated) and a production increase in Sweden. Small Truck Parts (frames and axles for light-duty and pickup trucks, and door reinforce parts) grew on a production increase in Japan (non-consolidated) and the effect of FX. Construction Machinery Parts (construction machinery cabins and panel components for hydraulic excavators) rose on volume increases in Japan (non-consolidated) and China.

Product (Millions of Yen)	FY2024 Actual	FY2025 Forecast (Feb. 10)	FY2025 Actual	FY2025 Ratio	YoY Change
Large Truck Parts	36,407	38,800	39,959	19.8%	+3,552 / +9.8%
Small Truck Parts	118,495	121,900	122,887	60.8%	+4,392 / +3.7%
Construction Machinery Parts	28,718	32,700	32,664	16.2%	+3,946 / +13.7%
Others	6,263	6,600	6,657	3.2%	+394 / +6.3%
Total	189,883	200,000	202,167	–	+12,284 / +6.5%

Segment Results

In the Automobile segment, the company says profit has been on an upward trend since 2Q of FY2024, with 4Q showing a significant increase versus 3Q, driven by higher sales in Japan (non-consolidated) and increased sales from new orders in Thailand. Quarterly Automobile net sales in FY2025 were 37,299, 37,954, 40,491 and 51,334 million yen with segment profit of 3,400, 3,498, 3,835 and 5,321 million yen. The Construction Machinery segment remained profitable in FY2025, supported by production recovery of hydraulic excavator cabins in Japan (non-consolidated) and China; quarterly net sales were 8,479, 8,689, 8,609 and 9,350 million yen with segment profit of 201, 193, 232 and 319 million yen. Net sales and segment profit include inter-segment transactions.

Segment	Metric (Millions of Yen)	FY2024 H1	FY2024 H2	FY2025 H1	FY2025 H2
Automobile	Net Sales	78,891	79,702	75,253	91,825
Automobile	Segment Profit	6,786	6,381	6,898	9,156
Automobile	Segment Profit Ratio (%)	8.6	8.0	9.2	9.9
Construction Machinery	Net Sales	16,005	14,633	17,168	17,959
Construction Machinery	Segment Profit	-105	-310	394	551
Construction Machinery	Segment Profit Ratio (%)	-0.7	-2.1	2.3	3.1

FY2026 Forecast

For FY2026 the company forecasts net sales of 190,000 million yen and operating profit of 11,400 million yen, both down year on year, citing delayed recovery of pickup truck production in Thailand despite the sales expansion effect from new products launched last year. The forecast reflects the impact of the Middle East situation, including customer production plans and material price increases, to the extent that can be determined at this point. Assumed rates are 150.00 for USD, 4.50 for THB, 21.00 for RMB and 15.00 for SEK. Of the 12,167 million yen decline in net sales, 8,737 million yen is attributed to foreign exchange gains and losses and 3,430 million yen to the difference excluding foreign exchange. The operating profit bridge shows sales mix/capacity utilization at -584 million yen, depreciation/amortization at -1,712 million yen, energy costs at -150 million yen and the FX rate at -263 million yen, partly offset by streamlining at +600 million yen. Capital expenditure is planned at 24.3 billion yen in FY2026 after 17.9 billion yen in FY2025, and depreciation/amortization is projected at 13.2 billion yen after 12.5 billion yen.

Item (Millions of Yen)	FY2025 (Actual)	FY2026 Forecast	Difference	Difference %
Net Sales	202,167	190,000	-12,167	-6.0%
Operating Profit	13,509	11,400	-2,109	-15.6%
Ordinary Profit	14,026	11,500	-2,526	-18.0%
Profit attributable to owners of parent	8,475	7,000	-1,475	-17.4%
Earnings per share	85.9Yen	71.7Yen	-14.2Yen	–
Dividends per share	37.0Yen	44.0Yen	+7.0Yen	–
ROE	7.2%	5.8%	-1.5%	–
DOE	3.1%	3.5%	+0.4%	–

By product, Large Truck Parts are forecast at 42,300 million yen (+2,341 million yen, +5.9%) on higher sales in Japan (non-consolidated) and Indonesia, and Construction Machinery Parts at 34,400 million yen (+1,736 million yen, +5.3%) on production increases in Japan (non-consolidated and KYOWA MFG) and China. Small Truck Parts are projected at 107,500 million yen (-15,387 million yen, -12.5%) on production declines in Thailand and the U.S. and negative FX impact, and Others at 5,800 million yen (-857 million yen, -12.9%). By region, Press Kogyo (non-consolidated) is forecast at 83,300 million yen (+6.7%) and Thailand at 62,700 million yen (-18.5%).

Shareholder Returns

The FY2025 annual dividend is 37 yen per share, with an interim dividend of 16.0 yen and 21.0 yen for the second half, an increase of 2 yen from the previous forecast and of 5.0 yen year on year. The dividend payout ratio was 43.1%, DOE 3.1% and the total return ratio 60.7%, with a dividend amount of 3,640 million yen and a share repurchase amount of 1,500 million yen for a total return amount of 5,140 million yen. The company’s capital policy targets a total return ratio of 60% or higher and an annual dividend of 32 yen per share or higher during the medium-term business plan, aiming to achieve DOE above 3.0%. For FY2026 the annual dividend per share is planned at 44 yen (+7 yen year on year), with a total return ratio of 61.4%, DOE of 3.5% and a dividend amount of 4,297 million yen.

Medium-Term Business Plan

Under the medium-term business plan “PRESence 28” (Pursuing Quality and Enhancing Presence), the FY2028 management targets are net sales of 240.0 billion yen, an operating profit ratio of 8.0% or higher and ROE of 9.0% or higher. Sales targets by segment are 200.0 billion yen for the Automotive-Related Business in FY2028 versus 165.6 billion yen in FY2023, and 40.0 billion yen for the Construction Machinery-Related Business (cabins) versus 32.2 billion yen in FY2023. The plan is organized around expanding and challenging strategies in the core business, evolving core products toward electrification, and promoting sustainability management. The company also states that it aims to increase its production share of hydraulic excavator cabins in Japan from 30% to 38% during the medium-term plan period. On the FY2025 highlights slide, the company says initiatives such as sales expansion and streamlining are progressing as planned and that growth investments are enhancing profitability.

On cash flows, operating cash flow was 22.3 billion yen and investing cash flow -17.2 billion yen in FY2025, for free cash flow of 5.1 billion yen; financing cash flow was -9.4 billion yen. For FY2026 the company forecasts operating cash flow of +25.4 billion yen, investing cash flow of -24.4 billion yen for investments for new orders and streamlining, and financing cash flow of -7.3 billion yen for dividend payments and debt repayments.

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.