Brother Industries, Ltd. (TSE: 6448) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under IFRS. Revenue rose 5.3% year-on-year to ¥893,464 million from ¥848,889 million, while operating profit climbed 15.0% to ¥77,868 million from ¥67,696 million. Pre-tax profit advanced 13.0% to ¥81,973 million, and profit attributable to owners of the parent jumped 23.5% to ¥67,624 million from ¥54,778 million. Basic EPS rose to ¥268.10 from ¥214.27, and ROE improved to 9.3% from 8.1%. Comprehensive income surged 136.7% to ¥115,668 million, lifted by foreign-exchange-related items.
Profit growth outpaces revenue
Brother — the Nagoya-based diversified manufacturer best known for its printing and solutions business (printers and multifunction devices), alongside home and industrial sewing machines, machine tools, and industrial and precision parts — delivered a year in which profit expanded far faster than the top line. On modest 5.3% revenue growth, business segment profit rose 10.8% to ¥83,631 million and operating profit grew 15.0%, lifting the operating margin. The standout was net profit, which climbed 23.5% as the gap between pre-tax growth (+13.0%) and bottom-line growth (+23.5%) reflected a more favourable tax and minority-interest picture, with profit attributable to owners of the parent of ¥67,624 million almost exactly matching the ¥67,641 million total profit for the year.
MUTOH and 16 others brought into the group
A defining feature of the year was a significant expansion of the consolidation scope: Brother added 17 newly consolidated subsidiaries during the period, including MUTOH Holdings and 16 other entities. MUTOH is a long-established maker of industrial inkjet printers and plotters, and its consolidation broadens Brother's reach in the wide-format and industrial-printing space that sits adjacent to its core printing and solutions franchise. Separately, the company reclassified its Network & Contents business as discontinued operations from the third quarter, so revenue, segment profit, operating profit and pre-tax profit are presented on a continuing-operations basis; the prior year was restated accordingly.
Comprehensive income more than doubles on FX
While operating performance was strong, the most dramatic swing came below the operating line. Comprehensive income jumped 136.7% to ¥115,668 million, far outpacing the 23.5% rise in net profit, driven by foreign-exchange-related items — primarily translation gains on overseas net assets in a weaker-yen environment. The gap between net profit (¥67.6 billion) and comprehensive income (¥115.7 billion) underscores how much of the year's balance-sheet strengthening came from currency effects rather than the income statement alone.
Fortress balance sheet; strong cash generation
Brother ended the year with a notably conservative balance sheet. Total assets stood at ¥1,018,815 million, with owners' equity of ¥763,277 million and an owners'-equity ratio of 74.9% — an unusually high capitalisation that gives the company ample flexibility for M&A and shareholder returns. Book value per share reached ¥3,066.67. Operating cash flow was robust at ¥111,001 million, comfortably exceeding net profit, and period-end cash and equivalents stood at ¥197,674 million.
Dividend held at ¥100; buyback-and-cancellation to dispel dilution; FY27 guides higher
The FY3/2026 annual dividend was maintained at ¥100.00 per share (¥50.00 interim + ¥50.00 year-end), unchanged year-on-year, for a payout ratio of 37.3%. The FY3/2027 forecast keeps the dividend at ¥100.00. On capital management, the board had resolved a share buyback (May 9, 2025) and the treasury shares acquired are to be cancelled to dispel dilution concerns; the FY27 EPS guidance reflects the buyback. For FY3/2027, management guides — on a continuing-operations basis — revenue of ¥910,000 million (+1.9%), business segment profit of ¥85,000 million (+1.6%), operating profit of ¥85,000 million (+9.2%), pre-tax profit of ¥87,500 million (+6.7%), and profit attributable to owners of ¥72,000 million (+6.5%), with EPS of ¥289.21.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥M) | 893,464 | 848,889 | +5.3% |
| Operating profit (¥M) | 77,868 | 67,696 | +15.0% |
| Pre-tax profit (¥M) | 81,973 | 72,542 | +13.0% |
| Profit attrib. to owners (¥M) | 67,624 | 54,778 | +23.5% |
| Basic EPS (¥) | 268.10 | 214.27 | +25.1% |
| ROE | 9.3% | 8.1% | +1.2pp |
| Annual dividend (¥) | 100.00 | 100.00 | 0.0% |
| FY27 operating profit guidance (¥M) | 85,000 | — | +9.2% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.