Aichi Tokei Denki (7723): FY2025 Results Summary — Net Income Jumps 35.9% to a Record High

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

Note: Aichi Tokei Denki does not publish an English-language results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is in turn based on the company’s Japanese-language IR materials, with figures transcribed as reported. The company’s fiscal year ended March 31, 2026 (labeled “2026年3月期” / FY ended March 2026 in the source materials) is classified as FY2025 under this site’s naming convention for the most recently completed fiscal year.

Aichi Tokei Denki announced its consolidated financial results for the fiscal year ended March 31, 2026 on May 8, 2026. Net sales rose 8.9% year on year to ¥59,116 million, operating profit rose 19.5% to ¥4,710 million, and profit attributable to owners of parent rose 35.9% to ¥4,801 million, with net sales and all profit lines reaching record highs. Steady demand centered on the domestic market, together with a gain on sale of investment securities (extraordinary income), contributed to the increase in net income.

Consolidated Results (Full-Year Actual)

Net sales increased 8.9% year on year. Cost of sales also rose 5.9%, but gross profit increased 18.9% to ¥14,720 million (gross margin of 24.9%). Although the company recorded costs related to countermeasures for a product defect, the increase in sales and an improved sales product mix absorbed an 18.6% rise in selling, general and administrative expenses, and operating profit increased 19.5% to ¥4,710 million (operating margin of 8.0%), while ordinary profit increased 9.3% to ¥5,208 million.

Item	FY2026/3 (Current Period)	FY2025/3 (Previous Period)	YoY Change
Net sales	¥59,116 million	¥54,286 million	+8.9%
Gross profit (gross margin)	¥14,720 million (24.9%)	¥12,383 million (22.8%)	+18.9%
Operating profit (operating margin)	¥4,710 million (8.0%)	¥3,940 million (7.3%)	+19.5%
Ordinary profit	¥5,208 million	¥4,764 million	+9.3%
Profit attributable to owners of parent	¥4,801 million	¥3,533 million	+35.9%

Segment Results

The measuring-instruments business exceeded the prior year in every field. Gas-related equipment sales rose 3.8% as demand for the replacement of household LP gas meters entered a recovery phase and “Aichi Cloud”-related products remained firm. Water-related equipment sales rose 8.6% on steady demand in both public-sector and private-sector markets and an increase in exports centered on water meters for North America. Instrumentation sales rose a substantial 34.1% as construction work on a project spanning fiscal years, carried over from the previous period, progressed. Special equipment sales declined 1.3%.

Business Segment	FY2026/3 (Current Period)	FY2025/3 (Previous Period)	YoY Change
Gas-related equipment	¥27,484 million	¥26,479 million	+3.8%
Water-related equipment	¥20,470 million	¥18,854 million	+8.6%
Sensors and systems for private-sector demand	¥2,706 million	¥2,631 million	+2.9%
Instrumentation	¥8,399 million	¥6,265 million	+34.1%
Special equipment	¥54 million	¥55 million	-1.3%
Total	¥59,116 million	¥54,286 million	+8.9%

FY2026 Forecast

For the fiscal year ending March 31, 2027, the company expects steady orders centered on its gas and water businesses to drive net sales of ¥60,480 million (up 2.3% year on year). Having recorded substantial product-defect countermeasure costs in the previous period, and despite facing higher costs for raw materials, parts and labor, the company expects operating profit of ¥4,960 million (up 5.3%, operating margin of 8.2%), with net sales, operating profit and ordinary profit all expected to reach new record highs. On the other hand, profit attributable to owners of parent is expected to decrease 4.0% to ¥4,610 million because of a decline in extraordinary income (gain on sale of investment securities).

Item	FY2027/3 (Forecast)	FY2026/3 (Actual)	YoY Change
Net sales	¥60,480 million	¥59,116 million	+2.3%
Operating profit (operating margin)	¥4,960 million (8.2%)	¥4,710 million (8.0%)	+5.3%
Ordinary profit	¥5,320 million	¥5,208 million	+2.1%
Profit attributable to owners of parent	¥4,610 million	¥4,801 million	-4.0%

Shareholder Returns

The annual dividend per share for the fiscal year ended March 31, 2026 was ¥113 (payout ratio of 36.2%), an increase from ¥75 (payout ratio of 32.6%) in the previous period. For the fiscal year ending March 31, 2027, the company expects an annual dividend of ¥120 (payout ratio of 39.9%). The company intends to maintain stable dividends while raising its payout ratio during the period of its Medium-Term Management Plan 2026.

Fiscal Year	Dividend per Share	Payout Ratio
FY2024/3	¥64	30.9%
FY2025/3	¥75	32.6%
FY2026/3	¥113	36.2%
FY2027/3 (Forecast)	¥120	39.9%

Medium-Term Plan / Topics

According to the materials, the company achieved the targets for all indicators under its Medium-Term Management Plan 2026 in the fiscal year ended March 31, 2025, and progress in the fiscal year ended March 31, 2026 was also on track, with all indicators expected to reach their targets. Cumulative connections to the company’s “Aichi Cloud” data-distribution service surpassed 1,550,000 units as of the end of March 2026. Regarding cross-shareholdings, the company achieved its first-year Medium-Term Plan target of a consolidated net-asset ratio “below 20%” at 19.2% in the previous period, but in the current period the ratio stood at 20.3%, narrowly missing the “below 20%” target due to the impact of rising share prices.

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.