Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 （281KB）

May 14, 2026

Company name : SMC Corporation

Listing : Tokyo Stock Exchange, Prime Market

Securities code : 6273

URL : https://www.smcworld.com/ir/en-jp/

Representative : Yoshiki Takada, President

Inquiries : Masahiro Ota, Director and Executive Officer (disclosure.jp@smc.com)

Scheduled date of annual general meeting of shareholders : June 26, 2026 Scheduled date to commence dividend payments : June 29, 2026

Scheduled date to file annual securities report : June 26, 2026 Preparation of supplementary material on financial results : Yes

Holding of financial results briefing : Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2026	842,541	6.4	190,558	0.2	235,591	12.2	167,302	7.0
      March 31, 2025	792,108	2.0	190,244	(3.0)	209,921	(16.4)	156,344	(12.3)

      Note : Comprehensive income For the fiscal year ended March 31, 2026 : ¥ 276,299 million 97.8%

      For the fiscal year ended March 31, 2025 : ¥ 139,704 million (48.7%)

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	2,640.04	-	8.3	10.7	22.6
      March 31, 2025	2,444.61	-	8.2	10.0	24.0

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of	Millions of yen	Millions of yen	%	Yen
      March 31, 2026	2,311,835	2,115,240	91.5	33,498.92
      March 31, 2025	2,100,767	1,928,306	91.8	30,255.22

      Reference : Equity As of March 31, 2026 : ¥ 2,115,090 million

      As of March 31, 2025 : ¥ 1,928,281 million

   3. Consolidated cash flows

      	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
      Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 188,917 196,656	Millions of yen (107,511) 35,234	Millions of yen (94,119) (100,202)	Millions of yen 573,769 531,649

2. Cash dividends

   	Annual dividends per share					Total dividends (Total)	Dividend Ratio (Consolidated)	Dividend on equity (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   Fiscal year ended March 31, 2025	Yen -	Yen	Yen -	Yen	Yen	Millions of yen	%	%
   		500.00		500.00	1,000.00	63,865	40.9	3.4
   Fiscal year ended March 31, 2026	-	500.00	-	500.00	1,000.00	63,228	37.9	3.1
   Fiscal year ending March 31, 2027 (Forecast)	-	500.00	-	500.00	1,000.00		37.1

3. Forecasts of consolidated operating results for the year ending March 31, 2027

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent		Basic earnings per share
   Year ending March 31, 2027	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   	1,000,000	18.7	219,000	14.9	239,000	1.4	170,000	1.6	2,692.46

   ＊Notes

   1. Significant changes in the scope of consolidation during the period : None

   2. Changes in accounting policies, changes in accounting estimates, and restatement

      1. Changes in accounting policies due to revisions to accounting standards and other regulations : None

      2. Changes in accounting policies due to other reasons : None

      3. Changes in accounting estimates : None

      4. Restatement : None

   3. Number of issued shares (common shares)

      1. Total number of issued shares at the end of the period (including treasury shares)

         As of March 31, 2026	63,869,359 shares
         As of March 31, 2025	67,369,359 shares

      2. Number of treasury shares at the end of the period

         As of March 31, 2026	730,300 shares
         As of March 31, 2025	3,635,534 shares

      3. Average number of shares outstanding during the period

Note : The Company's shares held by the Board Benefit Trust (BBT) for the Directors' Stock Compensation Plan (11,200 shares) is included in the number of treasury shares, which is excluded in the calculation for the above: 2. Number of treasury shares at the end of the period and 3. Average number of shares outstanding during the period.

1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

   	Net sales		Operating profit		Ordinary profit		Profit
   Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   March 31, 2026	471,116	10.6	85,787	7.1	214,201	6.7	173,640	2.7
   March 31, 2025	425,859	(4.5)	80,118	(19.5)	200,657	(11.7)	169,154	(6.0)

   	Basic earnings per share	Diluted earnings per share
   Fiscal year ended	Yen	Yen
   March 31, 2026	2,740.06	-
   March 31, 2025	2,644.91	-

2. Non-consolidated financial position

Reference : Equity As of March 31, 2026 : ¥ 1,366,683 million

As of March 31, 2025 : ¥ 1,281,525 million

＊Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

＊Proper use of earnings forecasts, and other special matters

1. Forecasts are based on information and certain premises that the Company considers to be reasonable at the time these consolidated financial results for the fiscal year are released.

   Some factors could cause actual results to differ from expectations.

2. The Company is scheduled to hold a financial results briefing for institutional investors and analysts on May 14, 2026. Presentation material will be released on the Company's website on the day.

1. Qualitative information about the results
   1. Operating results

      During the fiscal year (April 1, 2025 to March 31, 2026), the global economy remained uncertain due to factors such as the intensification of the Middle East situation and the U.S. tariff policy.

      Looking at the overall demand environment for automatic control equipment, in the semiconductor and electrical machinery-related industries, demand centered on digital device-related industries such as home appliances and flat panel displays remained solid in Greater China, and demand for the semiconductor-related industry recovered in Japan, North America, and South Korea in the latter half of the fiscal year. In the automotive-related industry, although EV-related demand was resilient in Greater China, capital investments continued to hold back in North America, Japan and Europe. Machine tool-related industry showed strength mainly in Greater China and Japan. Sales to medical equipment-related, food machinery-related, and other industries remained sluggish.

      Under these circumstances, the SMC Group has continued to make aggressive capital investments to expand its product supply capability, to multiply its production based on BCP (Business Continuity Plan), and to strengthen its product development capability. The Group has also continued to work on promoting diversification of products and customers, and other initiatives.

      Consequently, the summary of consolidated business results for the fiscal year ended March 31, 2026 is as follows: Net sales were 842,541 million yen (increased by 6.4%, yoy).

      Operating profit was 190,558 million yen (increased by 0.2%, yoy). It remained at the same level as the previous fiscal year due to the increase in cost ratio, personnel expenses, and depreciation.

      Ordinary profit was 235,591 million yen (increased by 12.2%, yoy), mainly due to the increase in foreign exchange gains.

      Profit before income taxes was 236,989 million yen (increased by 12.3%, yoy).

      Profit attributable to owners of parent was 167,302 million yen (increased by 7.0%, yoy). ROE became 8.3%, increased by 0.1 point from the previous fiscal year end.

   2. Financial position

      Financial position as of the end of this fiscal year (March 31, 2026) are as follows:

      Total assets were 2,311,835 million yen (a 211,068 million yen or 10.0% increase from the previous fiscal year end), mainly due to a 27,355 million yen increase in trade receivable, a 17,037 million yen increase in inventories, and a 139,292 million yen increase in property, plant and equipment.

      Total liabilities were 196,595 million yen (a 24,134 million yen or 14.0% increase from the previous fiscal year end), mainly due to a 15,076 million yen decrease in trade payable, and a 17,421 million yen increase in income taxes payables.

      Total net assets were 2,115,240 million yen (a 186,933 million yen or 9.7% increase from the previous fiscal year end), mainly due to a 167,302 million yen increase in retained earnings caused by recorded profit attributable to owners of parent, and a 92,933 million yen increase in foreign currency translation adjustment.

   3. Cash flows

      The balance of cash and cash equivalents as of the end of this fiscal year (March 31, 2026) was 573,769 million yen (a 42,120 million yen increase from the previous fiscal year end).

      (Cash flows from operating activities)

      Net cash provided by operating activities was 188,917 million yen (a 7,739 million yen inflow decrease, yoy). The main factors were: 218,815 million yen (a 23,402 million yen inflow decrease, yoy) from sales activities, and

      50,271 million yen (a 16,454 million yen outflow decrease, yoy) from income taxes paid.

      (Cash flows from investing activities)

      Net cash used in investing activities was 107,511 million yen (a 142,746 million yen outflow increase, yoy).

      The main factors were: 42,249 million yen (a 62,393 million yen inflow increase, yoy) from net proceeds from time deposits, and 152,701 million yen (a 45,961 million yen outflow increase, yoy) from purchase of property, plant and equipment.

      With the above factors, the free cash flow for this fiscal year was a positive by 81,405 million yen (a 150,486 million yen inflow decrease, yoy).

      (Cash flows from financing activities)

      Net cash used in financing activities was 94,119 million yen (a 6,083 million yen outflow decrease, yoy).

      The main factors were: 30,018 million yen (a 4,999 million yen outflow increase, yoy) from purchase of treasury shares, and 63,535 million yen (a 513 million yen outflow decrease, yoy) from dividends paid.

   4. Outlook for the next fiscal year

   We estimate the outlook for the next fiscal year ending March 31, 2027 will remain uncertain by the factors such as geopolitical risks including the Middle East situation, the U.S. policy developments, and impact of exchange rate fluctuations.

   In terms of recent demand trends, demand for the semiconductor-related industry has recovered in each region, and we estimate hybrid vehicle-related demand will also increase in the automotive-related industry. We also estimate demands for the machine tool-related, food machinery-related, and medical equipment-related industries will increase, due to the increase in demand for automation and labor-saving.

   Under these circumstances, the Group will move forward increasing direct sales staff, strengthening distributor sales channels, expanding sales of non-pneumatic and energy-saving products including temperature control equipment, and providing solutions such as 4BAR factory, which aims to reduce air consumption by low-pressure operation. The Group will also address issues such as expanding its regional market shares, improving productivity in product development, and actively utilizing its global human resources.

   The consolidated financial results for the next fiscal year are forecasted to be as follows, assuming average exchange rates of the U.S. dollar, the euro, the Chinese yuan against Japanese yen are 155 yen, 183 yen, and 22.70 yen respectively. Net sales 1 trillion yen, operating profit 219,000 million yen, ordinary profit 239,000 million yen and profit attributable to owners of parent 170,000 million yen.

2. Basic concept on selection of accounting standards

In order to maintain the adequacy in figure comparison at all times, the Group will continue to disclose consolidated financial statements in Japanese generally accepted accounting principles (GAAP).

We will appropriately consider adopting IFRS as necessary, taking into account various domestic and international circumstances going forward.