Marubun Corporation (7537): FY2025 Results Summary — Higher Sales but FX Losses Cut Profit, with a Sharply Higher Dividend Planned

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

Marubun Corporation, an electronics trading company handling semiconductors, electronic components and system equipment, reported net sales of 213,425 million yen for FY2025, up 2,587 million yen (+1.2%) year on year. Note: Marubun labels the fiscal year ended March 31, 2026 as “FY2025”, and the presentation slides use that label throughout. Profit declined at every level below gross profit: operating profit fell to 7,763 million yen (-1,391 million yen, △15.2%), ordinary profit to 4,218 million yen (-2,322 million yen, -35.5%) and profit attributable to owners of parent to 3,303 million yen (-1,105 million yen, -25.1%), mainly because of foreign exchange losses of 1.8 billion yen recorded on the ongoing yen depreciation toward the end of the fiscal year. For FY2026 the company forecasts net sales of 225,000 million yen and profit attributable to owners of parent of 4,000 million yen, and plans an annual dividend of 77 yen after revising its dividend policy.

Consolidated Results (Full-Year Actual)

Net sales increased as robust demand for mobility and consumer equipment offset the sluggish demand for industrial equipment, and strong growth in demand in the satellite-related fields in the Electronic Systems Business drove overall improvement in performance. Gross profit decreased due to changes in the product mix and a decrease in agency transactions. Ordinary profit and net income decreased due to the recording of foreign exchange losses (1.8 billion yen) resulting from the ongoing yen depreciation towards the end of the fiscal year. From the first quarter of the fiscal year ended March 31, 2026, the company changed its method of valuing inventories, and figures for the corresponding period of the previous fiscal year have been retroactively adjusted for comparison and analysis.

Item (Millions of Yen)	FY2024 Actual	FY2025 Actual	Composition Ratio (FY2024 / FY2025)	YoY Changes
Net Sales	210,837	213,425	ー / ー	+2,587 (+1.2%)
Gross Profit	26,223	24,701	12.4% / 11.6%	-1,521 (-5.8%)
SG&A expenses	17,068	16,938	8.1% / 7.9%	-130 (-0.8%)
Operating profit	9,155	7,763	4.3% / 3.6%	-1,391 (△15.2%)
Ordinary profit	6,541	4,218	3.1% / 2.0%	-2,322 (-35.5%)
Profit attribute to owners of parent	4,409	3,303	2.1% / 1.6%	-1,105 (-25.1%)

Against the forecast announced on November 4, net sales came in 3,425 million yen (+1.6%) above the 210,000 million yen plan, gross profit 701 million yen (+2.9%) above the 24,000 million yen plan, operating profit 763 million yen (+10.9%) above the 7,000 million yen plan, and profit attributable to owners of parent 303 million yen (+10.1%) above the 3,000 million yen plan, while ordinary profit fell 781 million yen (-15.6%) short of the 5,000 million yen plan. The company notes that unrecognized and unrealized valuation gains in the inventories at the end of this fiscal year, which are profit to be realized by recording net sales for the next fiscal year and beyond, are estimated to be equivalent to 2.1 billion yen.

Segment Results

In the Electronic Devices Business, net sales increased due to boosted demand for semiconductors for mobility and consumer equipment; on the other hand, profit decreased due to reduced agency transactions and the fluctuation of foreign exchange. In the Electronic Systems Business, net sales and profit increased due to significant growth in space and defense equipment, such as high-reliability components for satellites, against a backdrop of expanding space and defense-related markets. In the Entrepreneur Business, net sales and profit declined due to reduced demand for time synchronization systems for communication infrastructure and software products.

Segment	Metric (Millions of Yen)	FY2024	FY2025	YoY Changes
Electronic Devices Business	Net sales	150,525	152,245	+1,719 (+1.1%)
Electronic Devices Business	Ordinary Profit	2,965	562	-2,403 (-81.0%)
Electronic Systems Business	Net sales	57,336	58,623	+1,287 (+2.2%)
Electronic Systems Business	Ordinary Profit	3,342	3,670	+328 (+9.8%)
Entrepreneur Business	Net sales	2,975	2,556	-419 (-14.1%)
Entrepreneur Business	Ordinary Profit / (Loss)	231	(14)	-245 (-)

Within the Electronic Devices Business, Special-Use IC rose to 46,997 million yen (+4,119 / +9.6%) on an increase in mobility and Memory IC rose to 6,531 million yen (+3,336 / +104.4%) on an increase in consumer equipment and mobility, while Analog IC fell to 52,851 million yen (-4,843 / -8.4%) and Custom IC fell to 7,948 million yen (-2,003 / -20.1%), both on a decrease in industrial equipment. Micro-Processor was 2,949 million yen (+1,229 / 71.4%) and Electronic Components were 34,969 million yen (-118 / -0.3%), described as flat year on year. In the Electronic Systems Business, Space & Defense Electronics grew to 9,054 million yen (+1,844 / +25.6%) on an increase in high-reliability components for satellites and Industrial Equipment to 20,637 million yen (+1,068 / +5.5%), while Medical Equipment fell to 21,695 million yen (-1,568 / -6.7%) on a decrease in radiation therapy equipment and Laser Equipment was 7,237 million yen (-55 / -0.7%). In the Entrepreneur Business, ICT Solution was 2,395 million yen (-420 / -14.9) and AI & Robotics 161 million yen (+1 / +0.5%).

FY2026 Forecast

For FY2026 the company expects net sales to increase due to higher demand for space and defense equipment and medical equipment in the Electronic Systems Business. SG&A expenses are expected to increase due to an increase in personnel expenses and facility-related expenses, so operating profit is expected to be flat year on year. Ordinary profit is expected to increase on the assumption of no foreign exchange gains or losses, and net income is also expected to increase. The assumed exchange rate for the fiscal year ending March 2027 is 150 JPY/USD.

Item (Millions of Yen)	FY2025 Results	FY2026 Forecasts	Composition Ratio (FY2025 / FY2026)	YoY Changes
Net sales	213,425	225,000	ー / ー	+11,574 (+5.4%)
Gross profit	24,701	25,800	11.6% / 11.5%	+1,098 (+4.4%)
SG&A expenses	16,938	18,000	7.9% / 8.0%	+1,061 (+6.3%)
Operating profit	7,763	7,800	3.6% / 3.5%	+36 (+0.5%)
Ordinary profit	4,218	6,000	2.0% / 2.7%	+1,781 (+42.2%)
Profit attributable to owners of parent	3,303	4,000	1.5% / 1.8%	+696 (+21.1%)

By segment, Electronic Devices net sales are expected to remain solid at almost the same level as the previous fiscal year, with ordinary profit expected to increase on the assumption of balanced foreign exchange gains and losses. Electronic Systems net sales and profit are expected to increase due to solid demand for space and defense-related and medical-related equipment, and Entrepreneur Business net sales and profit are expected to increase due to the acquisition of new projects by market development for AI and Robotics products.

Segment	Metric (Millions of Yen)	FY2025	FY2026 Forecast	YoY Changes
Electronic Devices Business	Net sales	152,245	152,000	-245 (-0.2%)
Electronic Devices Business	Ordinary Profit	562	1,900	+1,337 (+237.9%)
Electronic Systems Business	Net sales	58,623	69,000	+10,376 (+17.7%)
Electronic Systems Business	Ordinary Profit	3,670	3,800	+129 (+3.5%)
Entrepreneur Business	Net sales	2,556	4,000	+1,443 (+56.5%)
Entrepreneur Business	Ordinary Profit / (Loss)	(14)	300	+314 (-)

Shareholder Returns

The company decided to revise the dividend policy and introduce a shareholder benefit system to shift management’s focus to capital efficiency, with the objective of cultivating a medium- to long-term relationship of trust with shareholders by returning stable and proactive profits. Under the revision, the consolidated dividend payout ratio target is raised from 40% to 50% and the DOE (dividend on equity ratio, calculated as total dividends divided by shareholder equity) target from 2.5% to 3.5%, with the company targeting the higher of the two. The shareholder benefit system targets shareholders who have held shares for more than one year, granting shareholder benefit points equivalent to 1,000 yen for holdings of 100 to 499 shares and points equivalent to 3,000 yen for holdings of 500 or more shares.

The slide states: “Dividend for FY3/25: Annual dividend of 50 yen planned, consisting of an interim dividend of 25 yen and a year-end dividend of 25 yen. Payout ratio: 39.6%, Dividend on equity (DOE): 2.6%”. The dividend chart labels the FY2025 column as (Plan) and the FY2026 column as (Forecast).

Dividend per share (yen)	FY2023	FY2024	FY2025 (Plan)	FY2026 (Forecast)
Interim dividend	25	25	25	38
Year-end dividend	27	41	25	39
Annual total	52	66	50	77

Medium-Term Business Plan and Topics

Marubun is executing the medium-term business plan “Marubun Nextage 2027” covering 2025-2027 under the slogan “Innovating Together”, positioned as a phase of expansion of sales rights and further strengthening of profitability. Its consolidated financial targets are ordinary income of 8.0 billion yen or more and ROE of 9.0% or higher, following the preceding “Nextage 2024” plan whose targets of ordinary income of 6.3 billion yen and ROE of 8.1% were achieved. As an aspiration for FY2030, the company points to ordinary income of 10.0 billion yen and ROE of 10.0% or higher, toward the vision of being “the unrivaled and most trusted electronics trading company with unique and original values”. The medium-term plan’s final-year FY2027 targets shown in the progress slide are net sales of 240.0 billion yen and ordinary profit of 8.0 billion yen.

On the balance sheet, total assets stood at 145,001 million yen, down 172 million yen from the end of the previous fiscal year, including an increase of 1,648 million yen in notes and accounts receivable-trade and an increase of 2,672 million yen in other current assets against a decrease of 6,118 million yen in merchandise and finished goods. Total liabilities decreased 2,179 million yen to 82,211 million yen, including a decrease of 1,594 million yen in short-term borrowings due to enhanced efficiency of working capital, and total net assets increased 2,007 million yen to 62,790 million yen.

Among business initiatives, the company describes a shift toward a streamlined revenue structure in the Electronic Devices Business focused on the consumer equipment, industrial equipment and mobility markets, which account for approximately 85% of operating sales; expansion of the high-profit model with technical service and system integration functions in the Electronic Systems Business; and, in the Entrepreneur Business, promotion of AI robotics and digital medical equipment, including a cumulative total of 55 units sold of the “Clarius Ultrasound Scanner” general-purpose ultrasound diagnostic device. A new enterprise resource planning system started full-fledged operation in August 2025, job categories for general and core employees were unified into a comprehensive employee category effective April 2025, and an alumni/referral employment system was introduced effective October 2025, with two people hired through alumni employment as of May 2026.

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.