Cosel ended the year to May 2026 in worse shape than its dividend might suggest. Sales fell 7.4% to ¥25.05bn, operating profit swung to a ¥695mn loss from a ¥628mn profit, and net loss widened to ¥3.41bn. Even so, the power-supply maker kept its full-year dividend at ¥55 a share, and says it intends to lift that to ¥60 in the current year.
| Item | Year to May 2026 | Year to May 2027 forecast |
|---|---|---|
| Sales | ¥25.046bn | ¥28.875bn |
| Operating profit/loss | ¥695mn loss | ¥1.335bn profit |
| Net profit/loss | ¥3.406bn loss | ¥1.604bn profit |
| Annual dividend per share | ¥55 | ¥60 forecast |
| Minimum DOE floor | 3.5% | 4.5% |
Why the earnings broke
The biggest damage came below the operating line. Cosel said the year included a ¥3.633bn loss tied to the disposal of Powerbox International AB, reflecting valuation losses on loans to PRBX and related sale costs, plus a ¥53mn impairment loss on intangible assets. That helps explain the odd shape of the income statement: ordinary profit stayed positive at ¥267mn, helped by foreign-exchange effects, while bottom-line profit fell deep into the red.
Why the dividend stayed put
The company’s own explanation is policy-led rather than heroic. Its payout framework called for a progressive dividend with a minimum dividend on equity floor of 3.5%, while weighing earnings, financial condition and future cash flow. For the year just ended, Cosel still reported a DOE of 4.2%, operating cash flow of ¥3.035bn, cash and deposits of ¥28.37bn, and an equity ratio of 86.1%, down from 93.1% a year earlier. From the current year, that minimum DOE floor rises to 4.5% under the revised policy.
What management says fixes it
Management argued that orders recovered before sales fully caught up. In the earnings presentation, Cosel said demand tied to semiconductor-manufacturing equipment for generative-AI GPUs rebounded sharply, while inventory digestion in FA and medical equipment improved. For the year to May 2027, it forecasts sales of ¥28.875bn, operating profit of ¥1.335bn and net profit of ¥1.604bn. It also expects help from product price increases, broader COSELSYNC. and LITEON sales, and the planned August transfer of PRBX, with PRBX included in consolidation only through the first quarter.
As ever with a turnaround script, that is a target rather than a promise. Cosel itself says actual results may differ for various reasons.