Johnson Electric reports Business and Unaudited Financial Information for the First Quarter of Financial Year 25/26 and Formation of Joint Ventures in the PRC for Humanoid Robotics Business
Business and Unaudited Financial Information for the First Quarter of Financial Year 25/26
The Group's sales for the three months ended 30 June 2025 were US$915 million compared to US$935 million for the same period in the previous financial year, a decrease of 2%. Exchange rate movements had a favourable impact of US$9 million on the Group's sales during the period.
Sales of Automotive Products Group ('APG')
APG's sales for the three months ended 30 June 2025 were US$765 million, a decrease of US$23 million or 3% compared to the same period in financial year 24/25. Excluding currency effects, APG's sales decreased by US$30 million or 4%.
In Asia-Pacific, sales decreased by 9%. Sales of products for closure, thermal management, oil pump and steering applications decreased, partially offset by increased sales of products for braking applications. The decline in sales in the region was primarily driven by significantly reduced demand for non-domestic car brands in China, a category where APG has historically maintained an above-average market share, as well as price adjustments made in response to competitive market conditions. However, accelerating growth in sales to domestic car brands in China partially offset this decline.
In Europe, the Middle East and Africa ('EMEA'), sales increased by 2%. Sales of products for braking, oil pump, steering, engine and fuel management applications increased, partially offset by decreased sales of products for closure and vision applications.
In the Americas, sales decreased by 4%. Sales of products for braking, oil pump and engine and fuel management applications decreased due to the phasing out of some programs and weak demand from certain customers. This decline was partially offset by increased sales of powder metal components.
Sales of Industry Products Group ('IPG')
IPG's sales for the three months ended 30 June 2025 were US$150 million, an increase of US$2 million or 2% compared to the same period in the previous financial year. Excluding currency effects, IPG's sales increased by US$1 million or 1%. The overall performance reflects a mixed regional picture, shaped by varying market and customer dynamics.
In Asia-Pacific, sales decreased by 7%, primarily due to both IPG as well as some of its customers experiencing keen price competition in certain product segments, where the focus of purchasing decisions has shifted towards low cost over product application features and bespoke design. The decline was further exacerbated by certain customers postponing planned program launches.
In EMEA, sales increased by 14%, due to the combination of the ramp-up of existing programs and new product launches, as well as replenishment orders from certain customers after their consumption of previous inventory surpluses.
In the Americas, sales decreased by 5% mainly due to weak demand from certain customers and some programs reaching end of life. This was partially offset by increase in sales of piezo motors, which benefited from robust demand for medical drug-dosing systems as well as high-precision equipment utilized in semiconductor foundries.
Chairman's Comments on Sales Performance and Outlook
Commenting on the first quarter's sales performance, Dr. Patrick Wang, Chairman and Chief Executive, said: 'Johnson Electric's sales in the first quarter of the financial year compared to the same period in the prior year reflected the more subdued macroeconomic environment, as well as the impact of declines in the market share of non-domestic automotive OEM customers in China'.
Concerning the outlook for the remainder of the financial year 25/26, Dr. Wang said: 'Until a clearer picture of the global tariff landscape emerges, we can expect customers to remain cautious in their purchasing and investment decisions. In the short term, this is likely to be a drag on sales, though we remain encouraged by our pipeline of new product launches and new business developments that should underpin growth in the second half of the financial year'.
Formation of Joint Ventures in the PRC for Humanoid Robotics Business
The Company today announced that the Group entered into two equity joint venture agreements with Shanghai Mechanical & Electrical Industry Co., Ltd. ('SMEIC') in relation to the formation of two equity joint ventures.
The first joint venture will be incorporated in Shanghai which will primarily serve as a sales channel for products manufactured by the second joint venture, as well as support business development, research and development, application engineering, and customer service for humanoid robotic solutions in the People's Republic of China (''PRC''). The second joint venture will be incorporated in Shenzhen which will serve as the engineering design, research and development, and manufacturing base for humanoid robot hardware modules and hardware system integration solutions. Each of the Group and SMEIC will invest RMB75 million in the two joint ventures.
SMEIC is a leading PRC-based electromechanical equipment manufacturing company and is listed on the Shanghai Stock Exchange.
'The two joint ventures are structured to complement one another - combining sales, business development and customer application support with product design, engineering, and manufacturing expertise. Together, they will enable the end-to-end delivery of high-performance humanoid robotic core components and subsystems to customers across the PRC.', said, Austin Wang, Executive Vice President. 'The formation of the joint ventures represents a significant milestone in the Group's long-term strategy to expand its presence in the robotics sector.'
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements regarding the financial condition, results of operations, and business plans of Johnson Electric and its Group, including the formation of joint ventures and the Group's outlook for the full year. These statements are based on current expectations, unaudited internal records, and management accounts, which have not been reviewed or audited by the Company's auditors and are subject to risks and uncertainties.
Forward-looking statements can be identified by words such as 'outlook', 'expects', 'anticipates', 'intends', 'plans', 'believes', 'estimates', 'projects', and similar expressions. Such statements are subject to known and unknown risks and uncertainties, and actual results may differ materially from those expressed or implied in these statements.
Shareholders and potential investors are advised to exercise caution when dealing or investing in the shares of the Company.
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