6592.T

• Overall 2025 Financial Performance

  • Consolidated revenue hit an all-time high, breaking through 200 billion yen for the first time with a 2.1% year-over-year increase
  • Operating income grew 17.7% year-over-year (double-digit growth), with a 17.9% increase compared to the August 2025 forecast
  • Ordinary income increased 8.1% year-over-year, and was 57.3% above forecast due to foreign exchange gains
  • Net income increased 104.8% year-over-year (all-time high), and was 59.2% above forecast, with effective tax rate dropping 21 percentage points year-over-year
  • Total sales volume was 2.5% above plan, total production volume was 3.6% above plan, 32 million units higher than the August forecast in sales volume and 46 million units higher in production volume
  • Operating cash flow was 35.3 billion yen (4.7 billion yen lower year-over-year due to higher corporate tax payments despite higher operating income); free cash flow was 24.8 billion yen (400 million yen higher year-over-year)

• Strategic Growth Initiatives

  • Growth is focused on the three M (Mobility, Machinery, Medical) domains, with active use of M&A and partnerships to accelerate expansion
  • In January 2026, completed the acquisition of Nippon Pulse Motor, now renamed Mabuchi NPM, which will be consolidated starting February 2026. This acquisition adds industrial network capabilities and control technology that Mabuchi did not previously hold, expanding business in the three M domains. Mabuchi NPM provides end-to-end offerings from control to power to units, including self-developed LSI, Motionnet control equipment, various stepping motors, high-speed high-precision shaft motors, and unit products, serving the needs of FA equipment and precision equipment
  • Orders are expanding across the three M domains, with growing new orders in the machinery segment centered on high-value-added brushless motors
  • Participated in the Kyoto Humanoid Association in October 2025 to revitalize Japan's humanoid robot industry, responsible for motor development and supply, currently developing initial prototypes in collaboration with member organizations, and exploring business opportunities in the humanoid robot market across the group

• Operational Infrastructure Development

  • Established India Mabuchi, a sales subsidiary, in March 2025, which will launch full-scale sales operations in 2026 to establish presence in the growing Indian market
  • Spun off the company's long-held production equipment and mold design/manufacturing functions to establish Mabuchi Engineering in October 2025, to further develop these capabilities across the entire group including newly acquired M&A companies
  • Established a new R&D center within Vietnam Mabuchi in October 2025, completing R&D capabilities in Japan, China, and Vietnam to better capture regional market needs and strengthen product development functions

• Sustainability Progress

  • Sustainability indicators (non-financial metrics set as part of Management Plan 2030) are progressing broadly in line with plan, with full details published on the company website

• Shareholder Return Policy Update

  • Added ROE of 10% or higher as a new financial target to Management Plan 2030, and updated the dividend calculation standard to accelerate achievement of this target
  • The new dividend rule: if prior period ROE is below 10% or PBR is below 1x, set dividend based on 4% DOE; if the amount equivalent to 4% DOE is below 50% payout ratio, set a minimum payout ratio of 50% above 4% DOE
  • For 2025, the full-year dividend is set at 106 yen, a 28 yen increase from the prior forecast of 78 yen, applying the new calculation standard
  • For 2026 after stock split, the annual dividend is forecast at 56 yen, which will mark the 4th consecutive year of hitting an all-time high dividend
  • A 19 billion yen share repurchase is planned for 2026, a 12 billion yen increase from 2025, bringing the expected total payout ratio to 150.2% for 2026

• 2026 (December fiscal year) consolidated guidance

  • Revenue is projected at 213 billion yen, a 6.3% year-over-year increase
  • Operating income is projected at 26 billion yen, a 2.1% year-over-year increase, with an operating margin of 12.2%, making steady progress toward the Management Plan 2030 target of 15% or higher operating margin
  • Ordinary income is projected at 29.2 billion yen, a 16.8% year-over-year decrease; net income is projected at 21.5 billion yen, an 18.2% year-over-year decrease. No foreign exchange gain/loss is included in these projections
  • SG&A is projected at 40.6 billion yen, an 18.3% year-over-year increase, driven by higher SG&A from newly acquired subsidiaries, as well as continued investments to strengthen R&D, expand talent, and improve group management and IT infrastructure
  • Sales volume is projected to decrease 0.1% year-over-year, while production volume is projected to increase 0.4% year-over-year
  • Capital expenditure is planned at 12.5 billion yen, including 9.2 billion yen for production equipment and 1.1 billion yen for R&D-related facilities, to support medium to long-term orders with new product and labor-saving equipment investments
  • Depreciation is projected at 13.8 billion yen (500 million yen increase year-over-year), R&D expenditure is projected at 8.7 billion yen (1 billion yen increase year-over-year)

• Management Plan 2030 long-term guidance (maintained)

  • Financial targets: 300 billion yen total revenue, 15% or higher operating margin, 12% or higher ROIC, 10% or higher ROE
  • The company targets to achieve 100 points of Mabuchi Motor Value Point (measuring achievement of corporate value goals based on financial and non-financial metrics) by 2030; 2025 achievement was 77.3 points, on track
  • Through the first half of the 2030 period, the company is strengthening management infrastructure to improve profitability while preparing for new business expansion; in the second half, it will accelerate new business expansion, establish multiple business pillars of over 10 billion yen each, and achieve the 300 billion yen revenue target
  • For automotive electrical equipment, revenue growth is expected from 2027 onward driven by new customers and new application expansion for power window products
  • For Life & Industrial Equipment and new domains, growth will continue to be accelerated via M&A and partnerships centered on the three M domains
  • The company plans to deploy 70 billion to 80 billion yen of total strategic investment by 2030, using leverage to pursue new revenue opportunities and sustainable corporate value improvement

1. Automotive Electrical Equipment Segment: 2025 sales volume increased 2.3% compared to plan, and sales value increased 4% compared to plan. Growth was driven by strong sales of motors for valves, mirrors, and door locks, as well as expansion into new applications including grille shutters and fuel filler openings, which offset the decline from the end of production and sales of older-generation power window products. For 2026, this segment is projected to achieve a 3% year-over-year increase in sales value; small motor demand will follow overall industry trends, while medium motors are expected to grow driven by steady expansion of new adoption for applications such as power seats.
2. Life & Industrial Equipment Segment: 2025 sales volume increased 3.5% compared to plan, and sales value increased 3.1% compared to plan. Growth came from solid performance in health and medical applications, as well as the addition of Mabuchi OTGear System and Mabuchi Microtech to the group. For 2026, this segment is projected to achieve a 17.4% year-over-year increase in sales value, driven by continued solid demand from health/medical, growing demand from mobility and machinery applications, and significant contribution from newly acquired group companies. Overall 2025 consolidated revenue broke through 200 billion yen for the first time, reaching 200 billion yen, a 2.1% year-over-year increase, and a 3.8% increase compared to the August 2025 forecast. Operating income reached 254.6 billion yen? No, correction: 2025 operating income was 25.46 billion? Wait no, conversion: 2000亿円 = 200 billion yen. 2025 operating income grew 17.7% year-over-year, and was 17.9% above the August 2025 forecast, reaching 25.5 billion yen (which matches 2026 forecast of 26 billion yen, +2.1% YoY). Overall consolidated 2025 results: operating income had a 4.5 billion yen increase from selling price and product mix improvement, offset by a 1.7 billion yen decrease from higher costs including increased SG&A, resulting in net double-digit year-over-year growth. Compared to August 2025 forecast, overall operating income was 3.8 billion yen higher than projected despite negative factors in selling price and product mix.

• Global economic growth is expected to slow overall in 2026
• Global automotive production volume is expected to be stagnant, with a slight year-over-year decline; North America finished vehicle inventory has started increasing again, leading to expected stagnant production
• Overall consumer spending is expected to remain sluggish across most non-automotive consumer goods categories in 2026
• The guidance does not include any assumption for foreign exchange gain or loss, so actual results may vary based on future exchange rate movements
• Raw material commodity prices are expected to increase, which will create a 2.7 billion yen headwind to operating income in 2026

No question and answer section is included in the provided transcript.