NSK Ltd. ( (NPSKY) ) has released its Q4 earnings. Here is a breakdown of the information NSK Ltd. presented to its investors.
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NSK Ltd. is a Japanese company listed on the Tokyo Stock Exchange, primarily engaged in the production and sale of bearings and precision machinery, with a focus on the industrial and automotive sectors. In its latest earnings report for the fiscal year ending March 31, 2025, NSK Ltd. reported consolidated sales of ¥796,667 million, marking a 1.0% increase from the previous year. The company’s operating income rose by 3.9% to ¥28,457 million, while net income attributable to owners of the parent increased by 25.2% to ¥10,647 million. However, total comprehensive income saw a significant drop of 90.8% to ¥7,499 million, largely due to changes in other comprehensive income components.
Key financial highlights include a basic earnings per share of ¥21.78, up from ¥17.27 the previous year, and a return on equity of 1.6%. The industrial machinery segment saw a 4.8% increase in sales, driven by a weaker yen and demand recovery, while the automotive segment experienced a 1.7% decline in sales due to reduced global automotive production. NSK Ltd. also reported a decrease in total assets to ¥1,219,543 million, down by ¥78,534 million from the previous year, and a decrease in total equity to ¥669,189 million.
The company faced challenges in cash flow, with net cash provided by operating activities decreasing to ¥82,176 million from ¥99,818 million the previous year. Cash used in investing activities improved to ¥58,753 million from ¥90,814 million, while cash used in financing activities increased to ¥33,741 million from ¥24,780 million. NSK Ltd. announced a year-end dividend of ¥17.00 per share, totaling ¥34.00 for the fiscal year, with a forecast to maintain the same dividend for the next fiscal year.
Looking ahead, NSK Ltd. anticipates a challenging business environment for the fiscal year ending March 31, 2026, with expected declines in sales and operating income due to geopolitical risks and economic uncertainties. The company forecasts consolidated sales of ¥760,000 million, a 4.6% decrease, and operating income of ¥22,000 million, down 22.7%. Despite these challenges, NSK Ltd. remains committed to its mid-term management plan focusing on growth, resource enhancement, and ESG management.