The company posted solid 2024 gains but warns of 2025 slowdown.
Oki Electric Industry has posted a third consecutive year of revenue growth, with net sales for the year ending March 2025 rising 7% to ¥452.5 bilion ($2.9 billion/ €2.7 billion), the company’s highest level in five years. However, it warned of a likely revenue and profit decline in 2025, as one-off tailwinds fade and major project demand tapers off.
Operating income for FY2024 was broadly flat at ¥18.6 billion ($120 million/ €110 million), down slightly from ¥18.7 billion in the previous year. Adjusted for non-recurring factors, however, underlying operating profit surged 54% to ¥22.5 billion ($145 million/ €135 million), thanks to improved product mix and strong performances in public infrastructure and defence-related systems.
Still, management forecasts flat revenues of ¥450 billion and a 12% fall in net profit for FY2025, citing an expected downturn in its Enterprise Solutions division, which includes its printer and systems business. That segment had benefited from large-scale projects tied to the release of new Japanese banknotes but is forecast to decline in both sales and profit as that demand wanes.
Enterprise Solutions sales held steady at ¥179.8 billion ($1.15 billion/ €1.08 billion) in FY2024, but operating income fell 40% to ¥13.1billion ($85 million/ €78 million). Oki aims to offset this with cost controls and new manufacturing capacity in Vietnam, alongside expansion in India and Southeast Asia.
