Sumitomo Electric Industries, Ltd. (TSE: 5802), one of Japan's largest wire and cable manufacturers and a global leader in automotive wiring harnesses, reported its full-year results for the fiscal year ended March 31, 2026, on May 12, 2026. Consolidated revenue advanced 9.2% year-on-year to ¥5,110,171 million — crossing the ¥5 trillion threshold for the first time — while operating profit surged 30.4% to ¥418,173 million and ordinary profit jumped 39.3% to ¥431,274 million. Net profit attributable to owners of the parent nearly doubled, rising 90.7% to ¥369,508 million, up from ¥193,771 million in the prior year. Earnings per share rose to ¥473.78 from ¥248.47.
The result reflects broad-based strength across Sumitomo Electric's four principal business lines — Automotive (wiring harnesses and related components), Infocommunications (optical fibre cables, network equipment), Electronics (electronic wires, FPC, tools), and Environment & Energy (power cables, construction) — with the group benefiting from solid automotive demand, improved pricing, and a weaker yen that bolstered overseas earnings translated back to Japanese yen. Comprehensive income reached ¥596,797 million (+235.2%), with the dramatic swing reflecting both operating improvement and favourable currency translation gains on the group's extensive overseas net assets.
Balance sheet strengthened; equity ratio rises to 56.9%
Total consolidated assets grew to ¥4,824,532 million at fiscal year-end, up from ¥4,441,629 million a year earlier, while net assets expanded to ¥2,834,999 million from ¥2,530,437 million. The equity ratio improved sharply to 56.9% from 51.6%, reflecting strong earnings retention and an improved balance-sheet structure. Book value per share rose to ¥3,517.58 from ¥2,936.93. Operating cash flow remained robust at ¥425,192 million, comfortably covering capital investment, while the end-of-year cash balance stood at ¥235,921 million. The equity ratio improvement signals a significantly de-levered group relative to prior years.
Dividend raised to ¥154; 1-for-4 stock split announced for July 2026
Sumitomo Electric raised its annual dividend to ¥154 per share for FY2026 (¥50 interim + ¥104 year-end), up substantially from ¥97 in FY2025, with total dividends paid of ¥120,131 million and a payout ratio of 32.5%. In a landmark capital-markets decision, the board resolved on May 12, 2026 to execute a 1-for-4 stock split effective July 1, 2026, aimed at improving share liquidity and broadening the retail investor base. The FY2027 dividend forecast is set at ¥39 per share (post-split basis: ¥19 interim + ¥20 year-end), equivalent to ¥156 per share on a pre-split basis — a progressive step up from FY2026's ¥154.
FY2027 guidance: revenue to grow further to ¥5.3 trillion
For the fiscal year ending March 2027, Sumitomo Electric guides for consolidated revenue of ¥5,300,000 million (+3.7%), operating profit of ¥425,000 million (+1.6%), ordinary profit of ¥432,000 million (+0.2%), and net profit attributable to owners of ¥320,000 million (-13.4%), with EPS of ¥102.57 (post-split). The guided net profit decline from the exceptional FY2026 level reflects a normalisation assumption — FY2026 net profit was boosted by substantial one-off items including the deconsolidation of Sumitomo Densetsu Co., Ltd. (excluded from the consolidated scope in FY2026). Operating and ordinary profit are expected to continue growing modestly, supported by ongoing automotive wiring harness demand and infrastructure investment in optical fibre networks.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 5,110,171 | 4,679,789 | +9.2% |
| Operating profit (¥ million) | 418,173 | 320,663 | +30.4% |
| Ordinary profit (¥ million) | 431,274 | 309,496 | +39.3% |
| Net profit attrib. to owners (¥ million) | 369,508 | 193,771 | +90.7% |
| EPS (¥) | 473.78 | 248.47 | +90.7% |
| Comprehensive income (¥ million) | 596,797 | 178,030 | +235.2% |
| Operating margin | 8.2% | 6.9% | +1.3pp |
| Total assets (¥ million) | 4,824,532 | 4,441,629 | +8.6% |
| Net assets (¥ million) | 2,834,999 | 2,530,437 | +12.0% |
| Equity ratio | 56.9% | 51.6% | +5.3pp |
| BPS (¥) | 3,517.58 | 2,936.93 | +19.8% |
| Operating cash flow (¥ million) | 425,192 | 402,253 | +5.7% |
| Annual dividend (¥, pre-split) | 154 | 97 | +58.8% |
| FY2027 guidance — revenue (¥ million) | 5,300,000 | — | +3.7% |
| FY2027 guidance — operating profit (¥ million) | 425,000 | — | +1.6% |
| FY2027 guidance — net profit (¥ million) | 320,000 | — | −13.4% |
| FY2027 guidance — EPS (¥, post-split) | 102.57 | — | — |
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.