Meiji Electric Industries (3388): FY2025 Results Summary — Lower Sales, Higher Profit; Annual Dividend Raised to 90 Yen

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

Note: Meiji Electric Industries does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials (its latest full-year results briefing materials), with figures transcribed as reported. The period covered is the fiscal year ended March 2026; in line with this site’s convention, the latest completed full year is classified as FY2025, while tables and text retain the fiscal-period labels used in the materials.

Meiji Electric Industries reported consolidated results for the fiscal year ended March 2026 with net sales of 76,360 million yen (▲2.9% year on year) and operating profit of 3,670 million yen (+11.4% year on year), i.e., lower sales and higher profit. Although net sales declined year on year due to restrained R&D-related investment in the automotive industry, operating profit increased thanks to profitability-improvement activities, including higher value-added engineering business and productivity gains. Profit attributable to owners of parent was 2,844 million yen (+16.8% year on year), and ROE was 7.9% (+0.6pt year on year). The annual dividend was raised to 90 yen (+30 yen year on year).

Consolidated Results (Fiscal Year Ended March 2026, Actual)

Net sales decreased ▲2.9% year on year to 76,360 million yen, reflecting restrained R&D-related investment in the automotive industry. Operating profit rose +11.4% year on year to 3,670 million yen, helped by factors such as an improvement in the gross profit margin from 15.0% in the prior year to 16.2% (+1.2pt). Ordinary profit increased by 494 million yen year on year to 4,090 million yen, driven by the improvement in operating income (+376 million yen) and an improvement in non-operating income/expenses (+118 million yen, including a foreign exchange gain of 94 million yen). Profit attributable to owners of parent was 2,844 million yen, up +16.8% year on year.

Item	FY ended Mar 2026 (Actual)	FY ended Mar 2025 (Actual)	YoY Change (%)
Net sales (million yen)	76,360	78,672	▲2.9%
Operating profit (million yen)	3,670	3,294	+11.4%
Operating profit margin	4.8%	4.2%	+0.6pt
Ordinary profit (million yen)	4,090	3,596	+13.7%
Profit attributable to owners of parent (million yen)	2,844	2,435	+16.8%
ROE	7.9%	7.3%	+0.6pt

Results by Product Category and Region

By region, net sales in Japan, affected by restrained automotive-related investment, fell ▲4.3% year on year to 64,944 million yen, while North America rose +8.7% year on year to 7,054 million yen and Other (Asia and Europe) rose +1.1% year on year to 4,361 million yen, both recording higher sales.

Product Category (million yen)	FY ended Mar 2026	FY ended Mar 2025	YoY Change (%)
Control equipment	19,847	20,921	▲5.1%
Industrial equipment	31,824	30,736	+3.5%
Measuring instruments	8,775	7,587	+15.7%
Power supply equipment	3,319	6,216	▲46.6%
Mounting equipment	2,328	3,687	▲36.9%
Other	10,264	9,522	+7.8%

By product category, industrial equipment rose +3.5% year on year to 31,824 million yen and measuring instruments rose +15.7% year on year to 8,775 million yen, while control equipment fell ▲5.1% year on year to 19,847 million yen, power supply equipment fell ▲46.6% year on year to 3,319 million yen, and mounting equipment fell ▲36.9% year on year to 2,328 million yen. On a non-consolidated basis, the sales composition by business was 59.3% for the trading business (prior year: 56.7%) and 40.7% for the engineering business (prior year: 43.3%).

Full-Year Forecast (Fiscal Year Ending March 2027)

For the fiscal year ending March 2027, anticipating a recovery in R&D-related investment in the automotive industry, the company plans consolidated net sales of 84,000 million yen (+10.0% year on year), operating profit of 4,070 million yen (+10.9% year on year), ordinary profit of 4,380 million yen (+7.1% year on year), profit attributable to owners of parent of 3,060 million yen (+7.6% year on year), and ROE of 7.9%. The company will advance its 11th Medium-Term Management Plan and aims for higher sales and profit.

Item	FY ending Mar 2027 (Forecast)	FY ended Mar 2026 (Actual)	YoY Change (%)
Net sales (million yen)	84,000	76,360	+10.0%
Operating profit (million yen)	4,070	3,670	+10.9%
Operating profit margin	4.9%	4.8%	+0.1pt
Ordinary profit (million yen)	4,380	4,090	+7.1%
Profit attributable to owners of parent (million yen)	3,060	2,844	+7.6%
ROE	7.9%	7.9%	－pt

Shareholder Returns

The annual dividend for the fiscal year ended March 2026 was 90 yen (+30 yen year on year), with a dividend payout ratio of 40.3%. For the fiscal year ending March 2027, the company plans an annual dividend of 96 yen (+6 yen year on year), with a dividend payout ratio of 40.0%. Under its shareholder return policy, the company regards returning profits to shareholders as an important management issue and targets a consolidated dividend payout ratio of around 40%, while enhancing the internal reserves needed for future sustainable growth. For the period of the 11th Medium-Term Management Plan (through the fiscal year ending March 2027), the company has set a floor for dividends per share of 88 yen per year.

Item	FY ended Mar 2025	FY ended Mar 2026	FY ending Mar 2027 (Forecast)
Interim dividend	30 yen	44 yen	48 yen
Year-end dividend	30 yen	46 yen	48 yen
Annual dividend	60 yen	90 yen	96 yen
Dividend payout ratio	31.4%	40.3%	40.0%

Medium-Term Management Plan / Topics

Under the 11th Medium-Term Management Plan, the numerical targets for the fiscal year ending March 2027 are net sales of 84,000 million yen, operating profit of 4,070 million yen, an operating profit margin of 4.9%, ordinary profit of 4,380 million yen, profit attributable to owners of parent of 3,060 million yen, and ROE of 7.9%. As topics, the company held an opening ceremony and began operations for a low-carbon hydrogen model town demonstration project in Chita City, Aichi Prefecture, and opened the co-creation demonstration lab “Co-Creation M-Lab.” In addition, it exhibited jointly with four companies at “H2 & FC EXPO 2026” (Hydrogen & Fuel Cell Expo 2026), where visitors to its booth exceeded 1,000.

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.