Johnson Electric reports results for the year ended 31 March 2026

Johnson Electric Holdings Limited announced its financial results for the year ended 31 March 2026, reporting group sales of US$3,650 million, a marginal 0.1% increase compared to the prior year but a 2% decline on a constant currency basis. Gross profit remained stable at US$840 million (23.0% of sales), though adjusted EBITA fell to US$287 million (7.9% of sales), down from US$344 million (9.4%) the previous year. Net profit attributable to shareholders dropped 23% to US$202 million, while adjusted net profit excluding non-cash items declined 13% to US$234 million. The company’s Automotive Products Group (APG) generated US$3,054 million in sales, representing 84% of total revenue. APG’s sales declined 3% on a constant currency basis, reflecting regional challenges: Asia saw a 7% drop due to reduced market share among Sino-foreign joint venture OEMs in China, while North America remained flat amid affordability pressures. Europe experienced a 2% sales decline as sluggish demand and excess production capacity weighed on OEMs. APG’s performance varied by region, with China’s domestic OEMs and suppliers now driving the majority of its sales, though legacy joint venture customers continue to suppress growth. North America’s light vehicle production stagnated, with new car prices up over 30% since 2020, limiting affordability for low-to-middle-income buyers. Europe’s auto market remained weak, compounded by geopolitical uncertainty and shifting economics in battery electric vehicles. Free cash flow from operations fell to US$217 million from US$286 million the prior year, while cash reserves rose to US$902 million from US$791 million. The company recommended a final dividend of 44 HK cents per share (5.64 US cents), with a total debt-to-capital ratio of 10%. Challenges in automotive demand and currency effects contributed to the financial downturn, despite efforts to secure new business in key markets.