Johnson Electric Holdings Limited, a leading manufacturer of electric motors, has reported its financial results for the fiscal year ending March 31, 2026. The company faced a challenging environment that affected its profitability.
Sales and Profit Overview
Operating conditions for global manufacturing businesses during the financial year 2025/26 remained challenging, with end-market demand in most regions subdued and geopolitical events and uncertainties placing upward pressure on input costs.
Dr. Patrick Wang, Chairman and Chief Executive
- Group sales reached US$3,650 million, a slight increase of 0.1% year-on-year.
- Net profit attributable to shareholders fell 23% to US$202 million.
- The Automotive Products Group (APG) accounted for 84% of total sales, with revenues of US$3,054 million.
The group's gross profit stood at US$840 million, maintaining a margin of 23.0%. However, adjusted EBITA dropped to US$287 million, representing 7.9% of sales.
The decline in profitability was attributed to various factors, including increased overhead costs and adverse changes in the fair value of investments.
Regional Performance and Challenges
Sales in the Automotive Products Group were uneven across regions, reflecting market-specific challenges. In Asia, sales fell by 7% on a constant currency basis, primarily due to reduced market share among Sino-foreign joint venture customers.
In the Americas, sales rose by 1%, while Europe saw a 2% decline, highlighting the ongoing affordability issues for consumers and fluctuating production demands.
Financial Health and Dividend Recommendations
Despite the profit decline, Johnson Electric reported a solid financial position with cash reserves of US$902 million and a total debt to capital ratio of 10%. The Board recommended a final dividend of 44 HK cents per share, totaling 61 HK cents for the year.
Dr. Patrick Wang expressed cautious optimism regarding future performance, emphasizing the company's commitment to navigating current economic challenges while investing in innovative solutions for high-growth markets.