Stanley Electric Co., Ltd. (TSE: 6923), a Toyota Group-affiliated manufacturer specialising in automotive lighting systems, LEDs, and electronic devices, disclosed its consolidated full-year results for the fiscal year ended March 31, 2026 on May 12, 2026. Net sales edged up 1.7% year-on-year to ¥518,456 million, continuing a gradual top-line expansion, but profitability at the operating level came under pressure: operating profit fell 12.9% to ¥42,674 million, reflecting higher raw-material and manufacturing costs that the group was only partially able to offset through pricing and productivity improvements. Ordinary profit declined 8.3% to ¥50,853 million, while profit attributable to owners of the parent rose 2.4% to ¥32,813 million, aided by non-operating items and a lower effective tax rate. Earnings per share reached ¥240.51, up from ¥205.73 a year earlier, partly reflecting a reduction in the average share count following buybacks.
The divergence between operating and net profit trends — operating profit down sharply while net profit managed a modest gain — underscores the significant contribution of non-operating income (including equity-method investment gains of ¥1,052 million) and the impact of an active share-buyback programme. Comprehensive income surged to ¥80,172 million (vs ¥19,993 million in FY2025, a 301.0% jump), driven primarily by a strong improvement in other comprehensive income items, notably valuation gains on securities and foreign-currency translation adjustments tied to Stanley Electric's broad overseas manufacturing footprint.
Balance sheet restructured as buybacks reduce equity base
Total consolidated assets expanded to ¥809,264 million from ¥749,605 million a year earlier, reflecting growth in operating assets and overseas investment. Net assets, however, declined to ¥571,938 million from ¥598,906 million, as share-repurchase activity reduced the equity base. The equity ratio consequently contracted to 56.1% from 64.8% — still a robust level indicating a soundly capitalised balance sheet. Book value per share rose to ¥3,695.49 from ¥3,255.93, as the reduction in outstanding shares more than offset the decline in aggregate net assets. Cash flow from operating activities increased to ¥78,344 million (from ¥66,577 million), while capital expenditures consumed ¥48,901 million, leaving a healthy free cash flow position. Cash and equivalents at period-end stood at ¥135,925 million.
Dividend raised sharply; FY2027 guidance targets 20% revenue growth
Stanley Electric announced a significantly increased annual dividend of ¥104 per share for FY2026 (¥49 interim + ¥55 year-end), up from ¥72 the prior year — a 44.4% increase, with the payout ratio rising to 43.2%. For FY2027, the company guides for a much stronger performance: net sales of ¥622,000 million (+20.0%), operating profit of ¥55,000 million (+28.9%), ordinary profit of ¥58,000 million (+14.1%), and net profit of ¥34,000 million (+3.6%), equivalent to EPS of ¥276.62. The forecast annual dividend for FY2027 stands at ¥111 per share (¥55 interim + ¥56 year-end), up a further 6.7% from the already-elevated FY2026 level, with a payout ratio of 40.1%. The 20% revenue growth target reflects the consolidation of new subsidiaries and the company's expanding footprint in high-brightness LED and next-generation automotive lighting for electric vehicles.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Net sales (¥ million) | 518,456 | 509,565 | +1.7% |
| Operating profit (¥ million) | 42,674 | 49,002 | −12.9% |
| Ordinary profit (¥ million) | 50,853 | 55,454 | −8.3% |
| Net profit attrib. to owners (¥ million) | 32,813 | 32,058 | +2.4% |
| EPS (¥) | 240.51 | 205.73 | +16.9% |
| Comprehensive income (¥ million) | 80,172 | 19,993 | +301.0% |
| Total assets (¥ million) | 809,264 | 749,605 | +7.9% |
| Net assets (¥ million) | 571,938 | 598,906 | −4.5% |
| Equity ratio | 56.1% | 64.8% | −8.7pp |
| Operating cash flow (¥ million) | 78,344 | 66,577 | +17.7% |
| Annual dividend (¥) | 104 | 72 | +44.4% |
| FY2027 guidance — net sales (¥ million) | 622,000 | — | +20.0% |
| FY2027 guidance — operating profit (¥ million) | 55,000 | — | +28.9% |
| FY2027 guidance — net profit (¥ million) | 34,000 | — | +3.6% |
| FY2027 guidance — EPS (¥) | 276.62 | — | — |
| FY2027 dividend forecast (¥) | 111 | — | +6.7% |
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.