DENSO Announces Year-End Financial Results

• Consolidated revenue totaled 7,540.0 billion yen (US$47.2 billion), a 5.3 percent increase from the previous year.

• Consolidated operating profit totaled 552.5 billion yen (US$3.5 billion), a 6.5 percent increase from the previous year.

• Consolidated profit attributable to owners of the parent company totaled 443.8 billion yen (US$2.8 billion), a 5.9 percent increase from the previous year.

“Revenue increased compared to the previous year, driven by higher vehicle sales, and cost recovery from changes to certain product programs. Although our profitability was affected by various factors – including tariff-related costs, higher parts and material prices, and increased investment in our workforce – our team’s ongoing business improvements and higher production volumes enabled us to achieve a higher operating profit than last year,” said Yasushi Matsui, CFO, Executive Vice President and member of the Board of Directors of DENSO CORPORATION. “In 2027 fiscal year, we forecast revenue to increase to 7,670.0 billion yen (US$48.0 billion), operating profit to reach 500.0 billion yen (US$3.1 billion) and operating profit margin to be 6.5%. Our operating profit forecast decreased from the 2026 fiscal year, reflecting strengthened investments aimed at future growth and potential risks associated with a highly uncertain business environment. The annual dividend for the concluded fiscal year is 67 yen, a 3 yen increase from the previous announcement, and the forecast for the next fiscal year is 74 yen, a 7 yen increase from the previous year. We continue to strive to improve the DOE level in a long-term and stable manner.

In Japan, revenue increased to 4,404.1 billion yen (US$27.6 billion), up 4.5% from the previous year, and operating profit decreased to 185.9 billion yen (US$1,163.4 million), down 15.7% from the previous year.

In North America, revenue increased to 2,025.1 billion yen (US$12.7 billion), up 8.7% from the previous year, and operating profit increased to 132.3 billion yen (US$828.0 million), up 34.9% from the previous year.

In Europe, revenue increased to 767.9 billion yen (US$4.8 billion), up 6.8% from the previous year, and operating profit increased to 27.8 billion yen (US$174.0 million), up 221.3% from the previous year.

In Asia, revenue increased to 1,976.9 billion yen (US$12.4 billion), up 1.9％ from the previous year and operating profit increased to 178.8 billion yen (US$1,119.2 million), up 5.5％ from the previous year.

In other areas, revenue increased to 126.3 billion yen (US$0.8 billion), up 6.1% from the previous year, and operating profit increased to 24.9 billion yen (US$155.6 million), up 11.7% from the previous year.