THK Swings to Net Loss on Business Reclassification but Signals 2026 Profit Rebound

THK Co ( (JP:6481) ) has provided an announcement.

THK Co., Ltd. reported 2025 revenue of ¥240.4 billion from continuing operations, up 7.9% year on year, but operating income fell 9.3% to ¥14.4 billion and profit before tax declined 11.9% to ¥15.7 billion. A reclassification of the automotive and transportation business as a discontinued operation, combined with other factors, resulted in a sharp swing to a net loss attributable to owners of the parent of ¥69.9 billion and a drop in equity attributable to owners to ¥261.3 billion, or ¥2,332.92 per share.

Despite the loss, operating cash flow improved to ¥42.7 billion and the company maintained a strong cash position of ¥120.5 billion at year-end, while significantly increasing annual dividends to ¥246 per share, implying an aggressive payout aligned with its dividend-on-equity policy. For 2026, THK forecasts a recovery in profitability from continuing operations, guiding for ¥260 billion in revenue and a substantial rise in operating income to ¥26 billion, signaling management’s expectation of a rebound in core businesses and a more normalized earnings profile after the portfolio shift.

The most recent analyst rating on (JP:6481) stock is a Hold with a Yen5270.00 price target. To see the full list of analyst forecasts on THK Co stock, see the JP:6481 Stock Forecast page.

More about THK Co

THK Co., Ltd. is a Japan-based manufacturer listed on the Tokyo Stock Exchange Prime Market, operating under IFRS accounting standards. The company is engaged in industrial automation and related mechanical components, with a global customer base in manufacturing and transportation sectors.

Average Trading Volume: 1,169,065

Technical Sentiment Signal: Buy

Current Market Cap: Yen569.4B

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