Hirose Electric Co., Ltd. TSE:6806

Hirose Electric : Financial Results for FY2025 3nd Quarter (Apr 2025-Dec 2025)

Published

Source: MarketScreener

Business Results for the Third Quarter of FY2025

February 4, 2026 Hirose Electric Co., Ltd. 6806



Summary of the business results (FY2025.1Q-3Q From Apr 2025 to Dec 2025)

Overall sales remained solid; however, rising material costs-particularly for metals-continued to be a burden from the second quarter, ultimately putting pressure on profits. For the general industrial market, recovered to near historical peak levels, excluding the period of excess demand in FY2022, exceeding our plan. While the smartphone segment was weak, the consumer and mobile segment continued to be stable as expected, and the automotive-related segment continued to be strong.

Cumulative sales were +8.4% year-on-year, operating profit was -5.0%, and operating profit margin was 20.8%. Orders

received in the third quarter totaled 161.74 billion yen, +11.6% year-on-year.

FY2024

FY2025

YoY

1H 3Q 1Q-3Q

（24.4-9） （24.10-12） （24.4-12）

1H

（25.4-9）

3Q

（25.10-12）

1Q-3Q

（25.4-12）

2025.1Q-3Q /

2024.1Q-3Q

Orders

975.9

473.3

1,449.2

1,061.5

555.9

1,617.4

+11.6%

Sales

945.2

499.0

1,444.2

1,020.2

545.2

1,565.5

+8.4%

Operating Profit

222.2

120.0

342.1

204.6

120.4

325.0

-5.0%

Operating Profit ratio

23.5%

24.0%

23.7%

20.1%

22.1%

20.8%

-2.9pt

(Yen in hundred millions)

3

Changes in sales and operating profit (FY2024.1Q - FY2025.3Q / Consolidated basis)

Sales

Operating profit Operating profit ratio (Yen in hundred millions)

496.5

499.0

489.7

448.7 450.0

24.0%

22.9%

24.1%

18.8%

20.1%

22.1%

20.0%

102.6

119.6

120.0

84.6

98.3

106.3

120.4



530.5 545.2

24.1Q 24.2Q 24.3Q 24.4Q 25.1Q 25.2Q 25.3Q

Business Results for FY2025.1Q-3Q

(Yen in hundred millions)

FY2024.3Q

（Dec 31, 2024）

FY2025.3Q

（Dec 31, 2025）

Increase/Decrease

（YoY）

Increase/Decrease Ratio（YoY）

Sales

1,444.2

1,565.5

+121.3

+8.4%

COGS Ratio

54.4%

57.6%

+3.2

SGA Ratio

21.9%

21.5%

-0.4

Operating Profit

342.1

325.0

-17.1

-5.0%

(%)

23.7%

20.8%

-2.9

Profit before tax

374.7

352.9

-21.7

-5.8%

(%)

25.9%

22.5%

-3.4

Net profit

275.8

248.1

-27.7

-10.0%

(%)

19.1%

15.8%

-3.3

Shareholder's Equity Ratio

89.0%

88.3%

FY2024.3Q

FY2025.3Q

1US$

152.57yen

148.74yen

Earnings Per Share

815.25yen

738.35yen

１€

164.83yen

171.83yen

100won

11.11yen

10.55yen

FY2025.1Q-3Q Major Changes

Sales

121.3 hundred million yen Increased

（1,444.2 → 1,565.5）

General Industrial :＋ 99

Smartphone :－ 21

Automotive / Mobility-related :＋ 30 Telecommunications : + 5

(Yen in hundred millions)

COGS Ratio

3.2 pt Decreased （54.4% → 57.6%）

Variable Cost Ratio :37.8% → 40.7% Depreciation Cost Ratio : 7.7％ → 7.7％ Labor Cost Ratio : 7.6% → 7.8%

316.4 → 336.0 (+19.6）

Improved （21.9% → 21.5%）

0.4 pt

SGA Ratio

Financial income / costs

4.6 hundred million yen Decreased（+32.5 → +27.9）

Exchange Gain or Loss: ー1.1 → ＋0.2 Decrease in securities valuation gains: －5.8

FY2025.1Q-3Q YoY Variation Analysis

(Yen in hundred millions)

Sales

Operating Profit

(%)

Profit before tax

(%)

FY2024.1Q-3Q Actual

1,444.2

342.2

23.7%

374.7

25.9%

Exchange rate

-26.9

-17.0

-16.9

Labor cost increase

-26.2

-26.2

Depreciation cost increase

-10.5

-10.5

Increase in the product and others

148.2

36.5

31.8

Total amount of changes

121.3

-17.2

-21.8

FY2025.1Q-3Q Actual

1,565.5

325.0

20.8%

352.9

22.5%

Consolidated Balance Sheet （１）

（Yen in hundred millions）

Account

Mar 31, 2025

Dec 31, 2025

Increase/ Decrease

Remarks

Cash and Cash

856.7

863.4

501.6

278.9

1,436.8

908.7

57.8

231.1

4,278.3

+6.7

Profit before tax +248, Share buybacks -150,

Capital investment (including buildings, etc.)

Equivalents

-165, Dividend payment -165, Securities and

time deposit maturity redemption +275

Trade and other Receivables

403.9

+97.7

Increased sales

Inventories

250.9

+28.0

Other Financial Assets

1,513.7

-76.9

Securities +60, Time deposits decrease -137

Property, Plant and Equipment

863.8

+44.9

Increase in production facilities

Right-of-use Asset

49.4

+8.4

Others

230.2

+0.9

Consumption tax refund receivable

Total

4,168.7

+109.6

Asset

8

Total of cash in bank 1,604.5 1,458.0 -146.5

© 2025 HIROSE ELECTRIC CO., LTD. All rights reserved.

© 2025

HIROSE ELECTRIC CO., LTD. All rights reserv

ed.

Liabilities

Shareholder's Equity

Account

Mar 31, 2025

Dec 31, 2025

Increase/ Decrease

Remarks

Payables and other Debt

129.0

154.4

+25.4

Accounts payable increase due to increased purchases +20

Lease Liabilities

52.0

60.7

+8.7

Income Taxes Payable

81.4

39.1

-42.3

Domestic corporate tax payment

Others

204.8

247.7

+42.9

Increase in deferred tax liabilities

Total

467.2

502.0

+34.8

Capital stock and capital

206.3

207.8

3,572.9

- 424.5

420.1

3,776.3

+1.5

surplus

Retained earnings

3,489.7

+83.2

Net income +248, dividend payment

-165

Treasury shares

- 274.6

-149.8

Share Acquisition -150

280.1

+140.0

Exchange Conversion Adjustment (due

Others

to appreciation of KRW etc.) +120

Total

3,701.5

+74.8

Total Liabilities and Shareholder's Equity

4,168.7

4,278.3

+109.6

9

Capital Investment Depreciation

Capital Investment Ratio Depreciation Ratio

230

212

188

167

165

141

140

149

158

120

11.2%

11.2%

9.1%

10.1%

7.7%

7.9%

8.0%

7.7%

%

4%

8.5

11.



FY2022 FY2023 FY2024 FY2025 Forecast FY2025 Q1-Q3

(*Excluding land, building, and software investment)

7.36% 7.49% 6.65% 4.97% 7.23%

3.73% 3.94% 4.22% 3.97% 4.03%

42.04% 42.62%

39.90% 38.41% 38.30%

Treasury Stocks Individual and Others

14.50%

14.87%

15.20%

15.59%

15.39%

Foreign Corporation Other Corporation

Securities Firm

1.10%

1.97%

2.25% 3.07% 0.88%

Financial Institution

31.27% 29.10% 31.78% 33.99% 34.17%

Mar, 2022 Mar, 2023 Mar, 2024 Mar, 2025 Dec. 2025

（Yen in hundred millions）

FY2024

FY2025

YoY

1H

3Q

1Q-3Q

1H

3Q

1Q-3Q

FY2025.1Q-3Q

/FY2024.1Q-3Q

Sales

226

122

348

285

162

447

+28%

  • FY2025 1Q-3Q Composition ratio • Changes in quarterly sales

29%

111 115 122 121

141 144

162

1Q

2Q

3Q

4Q

1Q

2Q

3Q

FY2024

FY2025

  • Sales have rebounded to levels higher than FY21, before the COVID-19-related demand spike.

    FY2024

    FY2025

    YoY

    1H

    3Q

    1Q-3Q

    1H

    3Q

    1Q-3Q

    FY2025.1Q-3Q/ FY2024.1Q-3Q

    Sales

    232

    130

    362

    226

    115

    341

    -6%

    • FY2025 1Q-3Q Composition ratio • Changes in quarterly sales

      23%

      133 130

      99

      102 104

      122

      115

      1Q

      2Q

      3Q

      4Q

      1Q

      2Q

      3Q

      FY2024

      FY2025

      • While performance varied by region, results were soft overall.

        Sales by Application _ Consumer / Mobile Equipment

        （Yen in hundred millions）

        FY2024

        FY2025

        YoY

        1H

        3Q

        1Q-3Q

        1H

        3Q

        1Q-3Q

        FY2025.1Q-3Q

        /FY2024.1Q-3Q

        Sales

        180

        89

        269

        176

        87

        263

        -2%

        17%

    • FY2025 1Q-3Q Composition ratio • Changes in quarterly sales

      84

      96 89 86 90 87

      78

      1Q

      2Q

      3Q

      4Q

      1Q

      2Q

      3Q

      FY2024

      FY2025

      • Declined from 2Q due to seasonality but remained resilient.

        Sales by Application _ Automotive / Mobility-related

        （Yen in hundred millions）

        FY2024

        FY2025

        YoY

        1H

        3Q

        1Q-3Q

        1H

        3Q

        1Q-3Q

        FY2025.1Q-3Q

        /FY2024.1Q-3Q

        Sales

        246

        127

        373

        265

        138

        403

        +8%

    • FY2025 1Q-3Q Composition ratio • Changes in quarterly sales

      27%

      124

      122

      127

      119

      128

      137

      138

      1Q

      2Q

      3Q

      4Q

      1Q

      FY2024

      2Q

      FY2025

      3Q

      • Performance remained solid, supported by a diverse customer base.

        Sales by Application _ Telecommunications infrastructure equipment / OA equipment

        Telecommunications infrastructure equipment

        OA equipment

        27

        9

        13

        5

        40

        14

        28

        10

        17

        4

        45

        14

        +13%

        ±0%



        （Yen in hundred millions）

        FY2024

        FY2025

        YoY

        1H

        3Q

        1Q-3Q

        1H

        3Q

        1Q-3Q

        FY2025.1Q-3Q

        /FY2024.1Q-3Q

    • FY2025 1Q-3Q Composition ratio • Changes in quarterly sales

      17

4

Telecommunications 3% OA equipment

5

4

5

5

5

infrastructure equipment

1%

4

13

OA

15

equipment

Telecommunications infrastructure equipment

13

14

13

14

1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2024 FY2025

  • Supported by a strong market, our demand continued to grow gradually.

Business Forecast for the Year Ending March 31, 2026 (Consolidated)

(

© 2025 HIROSE ELECTRIC CO., LTD. All rights reserv

ed.

17

We revise the forecast, as the general industrial business is expected to outperform the forecast announced in November 2025 .

FY2024 Actual

（FY ended March 31, 2025)

FY2025（FY ending March 31, 2026）

1Q-3Q over the previous actual amount

For the year over the previous actual amount

Yen in hundred millions)

1Q-3Q

For the year

1Q-3Q Actual

2025.Nov

forecast

Revised forecast

Amount % change

Amount % change

Sales

1,444.2

1,894.2

1,565.5

2,000.0

2,050.0

+121.3

+8.4%

+155.8

+8.2%

COGS ratio

54.4%

54.9%

57.6%

56.5%

57.6%

Operating Profit

342.1

426.7

325.0

400.0

410.0

-17.1

-5.0%

-16.7

-3.9%

（%）

23.7%

22.5%

20.8%

20.0%

20.0%

Profit before Tax

374.7

462.2

352.9

430.0

440.0

-21.7

-5.8%

-22.2

-4.8%

（%）

25.9%

24.4%

22.5%

21.5%

21.5%

Net Profit

275.8

330.3

248.1

300.0

305.0

-27.7

-10.0%

-25.3

-7.7%

（%）

19.1%

17.4%

15.8%

15.0%

14.9%

Earnings Per Share

976.33yen

738.35yen

891.76yen

911.47yen

FY2024

Actual

FY2025 Forecast (Revised)

Dividend Per Share

245yen

490yen

245yen

490yen

490yen

1US$

152.58yen

150.00yen

１€

163.75yen

174.00yen

Consolidated Dividend Payout Ratio

-

50.2%

-

54.9%

53.8%

100won

10.97yen

10.50yen

Annual Sales Forecast Revision by Field (Approximate)

'24Act '25FCST '25FCST

NOV FEB

54

65

Telecommunication

(Yen in hundred millions)

469

575

545

430

330

340

347

430

464

492

545

610

'24Act '25FCST '25FCST

'24Act '25FCST '25FCST

'24Act '25FCST '25FCST

'24Act '25FCST '25FCST

FY2025 Forecast for the previous year

2025 Nov. FCST

2025 Feb. FCST

Following pages

Following pages



NOV

FEB

NOV

FEB

NOV

FEB

NOV

FEB

General Industrial

Smartphone

Consumer/Mobile equipment

Automotive/ Mobility-related

  • General Industrial

+23%

+30%

  • Smartphone

-7%

-7%

  • Consumer/Mobile equipment

-5%

-2%

  • Automotive/Mobility-related

+11%

+11%

  • Telecommunication

-

+20%

General Industrial: Shift toward growth by subsegment

Changes in the "General Industrial" Segment (FY20 vs FY25)

Overseas Sales Ratio

Overseas initiatives proved effective

Expansion of prod leads to higher ov

ratio

F

FY25

FY25

customer development progress

omer base expanded

Continued expansion in domestic and overseas markets

Cust

FY20

FY20

ket growth and

FY25

25

Mar

FY

uct base erseas

Y20

FY25

FY20

s amount ecember)

le Size: Sale m April to D

Bubb (Fro





FA & Industrial Equipment Medical Devices



Batteries & Power Devices Security Equipment





Measuring Instruments

Deal amount under negotiation

In addition to the progress in inventory adjustments, the General Industrial segment grows steadily due to product development and market development. Expects as a continuous growth driver.



Telecommunications Infrastructure Equipment: AI Server-related Business

AI server-related orders and sales in the "Communication Infrastructure Equipment" segment

AI server-related (servers, routers, switches, etc.) Orders

AI server-related (servers, routers, switches, etc.) Sales



Orders

IT5 Series

IT8 Series

IT14 Series

Sales

24 1Ǫ

24.1Q

24 2Ǫ

24.1Q

24.2Q

24 3Ǫ

24 4Ǫ

25 1Ǫ

25 2Ǫ

25 3Ǫ

2026

24.1Q 24.2Q 24.3Q 24.4Q 25.1Q 25.2Q 25.3Q 2026

AI server-related orders increased in FY25.3Q. The segment BB ratio, which was previously around 1 times, has been expanded to

1.4 times. While receiving the tailwind of market growth, we would like to aim for further growth by adding our own initiatives.

Tohoku Advanced Technology Center Plans to Expand Functions ~Further Strengthening of Production Facility Development System~

From Spring 2027: Aiming to further strengthen manufacturing capabilities, in addition to the assembly process, we aim to strengthen and optimize equipment development capabilities in all processes, including the front and rear processes.

Improvements to the control equipment software and the development of new heads boosted line productivity and contributed to reducing equipment manufacturing lead time.

March 2024: Construction to strengthen assembly equipment development capabilities

Hirose Electric Co., Ltd. is pleased to announce the expansion of the Tohoku Advanced Technology Center, which has been in operation since March 2024 as a production facility development base in Mukai-Nakano, Morioka City, Iwate Prefecture, with the aim of expanding its functions. The completion of the extension is scheduled for the spring of 2027.

As productivity improvement efforts are paying off, additional investments are being made for further expansion and development.



Shareholder Return - Share Buyback Announced in May 2025:

Decided to acquire treasury shares up to 60 billion yen over the four years from FY2025 to 2028.

  • From August 5, 2025 to November 14, 2025, acquisition completed

    806,500 shares, 15 billion yen

  • Announced on December 25, 2025, in progress

We are currently executing Share Buyback to increase the level of shareholder returns and improve capital efficiency as well as to enable a flexible capital policy in response to changes in the business environment.

Class of shares

Common stock

Total number of shares to be repurchased

Up to 1,000,000 shares

(3.03% of total shares outstanding, excluding treasury stock)

Total amount to be paid for repurchase

Up to 15,000,000,000 yen

Period of repurchase

From January 5, 2026 to July 31, 2026

Method of repurchase

Purchase on the Tokyo Stock Exchange

Appendix. Sales by Industry Segments round number (Quarterly Basis)

FY2024

FY2025

FY2025Q3

Composition ratio

General Industrial

1Q

2Q

3Q

4Q

1Q

2Q

3Q

111

115

122

121

141

144

162

29%

Smartphone

99

133

130

102

104

122

115

23%

Consumer/Mobile equipment

84

96

89

78

86

90

87

17%

Automotive/Mobility related

124

122

127

119

128

137

138

27%

Telecommunications infrastructure equipment

13

14

13

14

13

15

17

3%

OA equipment

4

5

5

4

5

5

4

1%

Total of Connector Sales

434

485

486

438

478

513

523

100%

Others

14

12

13

12

12

17

22

Total

449

497

499

© 2025 HIROSE

450 490

ELECTRIC CO., LTD. All rights reserved.

530

545

(Yen in hundred millions)

23



© 2025 HIROSE ELECTRIC CO., LTD. All rights reserved.

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