Johnson Electric reports FY25/26 profit slide despite resilient sales; keeps dividend unchanged

Bulletin Express05-28

Johnson Electric (the “Group”) posted FY25/26 revenue of USD 3.65 billion, almost flat year-on-year (-2 % in constant-currency terms). Net profit attributable to shareholders fell 23 % to USD 202.13 million, hit by softer automotive demand, higher overheads, adverse fair-value movements in investments and a USD 22.37 million non-cash impairment of acquired intangibles.

Gross profit held broadly steady at USD 840.45 million, keeping margin at 23.0 % (FY24/25: 23.1 %). Adjusted EBITA dropped 16.5 % to USD 287.40 million, trimming the margin to 7.9 % from 9.4 %. Free cash flow from operations declined to USD 217.30 million (FY24/25: USD 285.70 million) after a jump in capital expenditure to USD 285.00 million, equal to 7.8 % of sales.

DIVISIONAL PERFORMANCE • Automotive Products Group (APG), 84 % of sales, generated USD 3.05 billion, down 3 % in constant currency as joint-venture customers in China lost market share. • Industry Products Group (IPG) delivered USD 596.42 million, up 2 % in constant currency, marking a return to growth after three annual declines.

FINANCIAL POSITION Cash and cash equivalents rose to USD 901.94 million (FY24/25: USD 790.63 million). Net cash increased to USD 577.60 million, while total debt to capital improved to 10 % from 12 %. Interest cover strengthened to 21.9 times.

DIVIDEND The board proposes a final dividend of 44 HK cents (5.64 US cents) per share, equal to last year. Together with the interim payout of 17 HK cents, full-year distribution remains 61 HK cents (7.82 US cents).

OUTLOOK Management cited persistent geopolitical and macro-economic uncertainty but affirmed continued cost control and prudent financial management. Strategic investment will focus on electric-vehicle thermal management, solid-oxide fuel cell components and humanoid-robotics subsystems, supported by new joint ventures in China and expanded manufacturing capacity in India.

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