Tomen Devices (2737): FY2025 Results Summary — AI-Driven Memory Demand Lifts Sales 50.3% and Net Profit 79.2%

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Tomen Devices Corporation, the electronics trading company that distributes Samsung Group semiconductors and electronic components, reported net sales of 633.6 billion yen for FY2025 (the fiscal year ended March 31, 2026), up 50.3% year on year, with net profit of 10.0 billion yen, up 79.2%. The company attributes the growth to strong AI-driven demand for memory products and to memory prices that surged from mid-2025 and continue to rise. ROE reached 18.4%, and the company describes the year as significantly exceeding the targets of its Medium-Term Management Plan (FY2024-FY2026).

Consolidated Results (Full-Year Actual)

All four headline profit lines grew. Against the forecast revised on March 23, 2026, net sales came in at 102.2% and net profit at 100.2%, while ordinary profit finished at 98.7% of plan. Total assets expanded to 344.9 billion yen, which the company explains by higher inventories driven by tight supply conditions and rising procurement prices, together with increased borrowings to fund rising procurement prices and higher purchase volumes. As a result the equity ratio fell 26.3 pt to 17.2%.

(billions of yen)	FY2024 Result	FY2025 Result	YoY change (Amount)	YoY change (Percentage)	vs forecast (Mar 23, 2026)
Net Sales	421.6	633.6	211.9	50.3%	102.2%
Operating Profit	10.1	18.7	8.6	84.7%	106.1%
Ordinary Profit	7.3	13.3	5.9	80.6%	98.7%
Net Profit	5.5	10.0	4.4	79.2%	100.2%
Earnings per share (yen)	821.69	1,472.71	651.02	79.2%	100.2%
Total Assets	113.9	344.9	230.9	202.7%	ー
Net Assets	49.6	59.2	9.6	19.4%	ー
Net Assets per share (yen)	7,296.29	8,710.38	1,414.09	19.4%	ー
Equity ratio	43.5%	17.2%	ー	-26.3 pt	ー
ROE	11.7%	18.4%	ー	6.7 pt	ー

The bridge for ordinary profit runs from 7.3 billion yen in FY2024 to 13.3 billion yen in FY2025: an increase of 7.3 billion yen driven by higher sales and 1.6 billion yen from improved margins year on year, offset by declines of -0.8 billion yen from increased SG&A, -1.8 billion yen from higher foreign exchange losses and -0.3 billion yen from changes in other non-operating items.

Sales by Product Category

Memory drove the increase, rising 59.4% on higher sales for server/storage (overseas) and automotive applications, partly offset by lower sales for smartphones. System LSI rose 8.3% as growth in the domestic SiP (system in package) business outweighed a decline in high-resolution CIS (CMOS image sensors) for smartphones. Display gained 13.8% on OLEDs for automotive and smartphones, while Others fell 23.7% as battery sales grew but LED products declined due to discontinuation of sales.

Product Category (billions of yen)	FY2024	FY2025	YoY change
Memory	347.0	553.2	+ 59.4 %
System LSI	58.4	63.2	+ 8.3 %
Display	12.9	14.7	+ 13.8 %
Others	3.2	2.4	– 23.7 %

Sales by Application

By application, Information Equipment grew 55.4% on memory products for server/storage (overseas) and for PCs in Japan and overseas. Digital Home Appliances more than doubled, up 137.2%, on memory products for TVs (overseas) and digital cameras. Automotive rose 75.5% on strong memory sales and growing OLED sales in the domestic market, and Others rose 45.9% on the domestic SiP business. Mobile Communications was the only decline, down 14.5%, on lower sales of CIS and memory products for overseas smartphones. The overseas sales ratio rose from 69.8% in FY2024 to 74.7% in FY2025.

Application (billions of yen)	FY2024	FY2025	YoY change
Information Equipment	256.6	399.0	+55.4 %
Automotive	46.9	82.3	+75.5 %
Mobile Communications	60.5	51.6	-14.5 %
Digital Home Appliances	18.3	43.4	+137.2 %
Others	39.2	57.2	+45.9 %

FY2026 Forecast

For FY2026 (the fiscal year ending March 31, 2027), the company forecasts net sales of 750.0 billion yen, up 18.4%, ordinary profit of 14.5 billion yen, up 9.0%, and net profit of 11.0 billion yen, up 10.0%, with operating profit expected to edge down 2.7% to 18.2 billion yen and ROE at 17.5%. The assumptions given are that strong memory demand, particularly from data centers, continues; that supply tightness intensifies further this fiscal year and persists at least through 2027; and that memory prices continue a moderate upward trend through 2026 before plateauing at an elevated level. Amid tight supply, the company says it will prioritize securing volumes to maintain fulfillment rates for customers.

(billions of yen)	FY2025 Result	FY2026 Forecast	Changes (Amount)	Changes (%)
Net Sales	633.6	750.0	116.4	18.4%
Operating Profit	18.7	18.2	-0.5	-2.7%
Ordinary Profit	13.3	14.5	1.2	9.0%
Net Profit	10.0	11.0	1.0	10.0%
ROE	18.4%	17.5%	-0.9pt	ー

By product, Memory is expected to grow 21.5% to 672.0 billion yen and to account for 89.6% of sales, while System LSI is guided down 0.2% to 63.2 billion yen as domestic SiP growth is offset by weaker smartphone CIS sales, and Displays are guided down 16.2% to 12.3 billion yen on lower OLED sales for smartphones. The company flags the risk that surging memory prices are passed through to selling prices and dampen demand.

(billions of yen)	FY2025 Result	FY2025 Composition	FY2026 Forecast	FY2026 Composition	YonY change (Amount)	YonY change (Percentage)
Net Sales	633.7		750.0		116.3	18.4%
Memory	553.2	87.3%	672.0	89.6%	118.8	21.5%
System LSI	63.3	10.0%	63.2	8.4%	-0.1	-0.2%
Displays	14.7	2.3%	12.3	1.6%	-2.4	-16.2%
Others	2.5	0.4%	2.5	0.3%	0.0	0.3%

Shareholder Returns

The FY2025 dividend is 540 yen per share, up from 300 yen in FY2024, and the company forecasts 600 yen per share for FY2026. Under the new Medium-Term Management Plan (FY2026-FY2028) the shareholder return policy maintains performance-linked dividends with a 300 yen minimum dividend and a 40% payout ratio target in the final year.

Fiscal Year	Dividend (yen per share)	Dividend Payout Ratio
FY2024	300	36.5%
FY2025	540	36.7%
FY2026 Forecast	600	37.1%

Medium-Term Plan and Topics

Against the Medium-Term Management Plan covering FY2024 to FY2026, the company reports an achievement rate of 126.7% for net sales and 166.6% for net profit, and an ROE of 18.4% versus a target of 10% stably. Alongside the results, Tomen Devices announced Medium-Term Management Plan 2028. For FY2026 the sales division is being reorganized into an application-based structure in order to strengthen cross-functional collaboration, consolidate expertise and enhance solution capabilities, and an SCM Preparation Office is being established to promote operational efficiency, business standardization and talent development and to begin building the foundation for a supply chain management framework.

The group is a technology-based trading company that mainly distributes Samsung Group semiconductors and electronic components worldwide, and it is the only distributor of Samsung Group in Japan following the October 2018 transfer of the Samsung Japan distribution business from Marubun Semicon. It is listed on the Tokyo Stock Exchange Prime Market, is a group company of Toyota Tsusho, and had 202 employees on a consolidated basis as of March 31, 2026, equating to sales per employee of 3.1 billion yen.

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.