Stanley Electric raises full-year forecast, boosts dividends on yen depreciation

Stanley Electric has revised its consolidated financial results forecast for the fiscal year ending March 31, 2026, projecting higher net sales and profits compared to previous estimates. Net sales are now expected to reach JPY 500.0 bn, with operating profit at JPY 45.0 bn, ordinary profit at JPY 50.0 bn, and profit attributable to owners of parent at JPY 31.4 bn. These revisions are primarily attributed to foreign exchange effects, the continued depreciation of the yen, and the easing impact of higher U.S. tariff rates.

In line with the improved outlook, the company increased its interim dividend per share to JPY 49.0, up from the previously forecasted JPY 46.0. The year-end dividend forecast has also been raised from JPY 46.0 to JPY 51.0, bringing the total annual dividend to JPY 100.0 per share. This decision aligns with the company's dividend policy, which emphasizes stable dividends, capital efficiency, and a consolidated dividend payout ratio of 40% or a dividend on equity ratio of 3.5%, whichever is higher.

For the first half of FY2026/3, net sales reached JPY 248.47 bn, an increase of 1.8% year-on-year, and operating income was JPY 18.46 bn, a decrease of 3.8% year-on-year, but both figures outperformed forecasts. The Automotive Equipment Business and Electronic Components Business showed strong performance. Capital investments are also projected to increase to JPY 86.00 bn for the full fiscal year.