Shirai Electronics Industrial Co., Ltd. (TSE: 6658), the Shiga-based manufacturer of printed circuit boards (PCBs) with production in Japan and overseas, reported softer FY2026 results (year ended March 31, 2026) under Japanese GAAP. Consolidated net sales edged down 0.7% year-on-year to ¥29,118 million, but operating profit fell 21.2% to ¥2,030 million, ordinary profit declined 29.7% to ¥1,822 million, and profit attributable to owners of the parent dropped 36.9% to ¥1,309 million.
The earnings squeeze came despite stable top-line demand, reflecting weaker PCB margins. The operating margin narrowed to 7.0%, and ROE eased to 12.5%. Comprehensive income fell 37.7% to ¥1,557 million. Basic EPS came to ¥87.47, down from ¥137.57 a year earlier, as the bottom line contracted across the board.
Balance sheet stays solid; dividend raised to ¥35
The balance sheet remained healthy. Total assets stood at ¥19,185 million and net assets at ¥11,109 million, giving an equity ratio of 57.1% and book value per share of ¥731.04. Operating cash flow reached ¥1,965 million, with cash and equivalents of ¥802 million at year-end. Despite the profit decline, Shirai raised its FY2026 annual dividend to ¥35.00 per share (¥0 interim + ¥35 year-end), up from ¥30.00 the previous year, for a payout ratio of 40.0%.
Cautious FY2027 guidance signals a sharp profit drop
For FY2027 (ending March 2027), the company guides revenue of ¥29,000 million (-0.4%), broadly flat, but a steep decline in earnings on softer PCB demand: operating profit of ¥850 million (-58.1%), ordinary profit of ¥800 million (-56.1%), and net profit attributable to owners of ¥600 million (-54.2%), with EPS of ¥40.01. In line with the weaker outlook, the FY2027 dividend forecast is cut to ¥20.00 per share.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Net sales (¥ million) | 29,118 | 29,337 | -0.7% |
| Operating profit (¥ million) | 2,030 | 2,576 | -21.2% |
| Ordinary profit (¥ million) | 1,822 | 2,594 | -29.7% |
| Net profit attrib. to owners (¥ million) | 1,309 | 2,075 | -36.9% |
| EPS (¥) | 87.47 | 137.57 | -36.4% |
| Operating margin | 7.0% | 8.8% | -1.8pp |
| ROE | 12.5% | 21.0% | -8.5pp |
| Equity ratio | 57.1% | 54.4% | +2.7pp |
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.