Connector and PCB Makers FY2026 Full Year: AI demand boosts sales but profits diverge

The market was primarily propelled by the AI server and automotive segments. Four key themes defined the period:

• Explosion in AI: Orders for data center boards and components surged.
• Advanced Automotive Tech: Autonomous driving and electrification boosted demand for high-performance components.
• Surging Raw Material Costs: Rising prices of gold and copper squeezed margins.
• Expansion via M&A: Companies pursued growth by acquiring semiconductor and new-sector firms.

These factors played a decisive role in shaping each company's earnings.

The clear winner this period is Meiko, which achieved substantial growth in both revenue and profit.

The company's sales surged 16.3% year on year to 240.6 billion yen, while operating profit jumped 28.8% to 24.6 billion yen. This rapid expansion was propelled by high-value-added boards, lifting its operating margin to 10.2%.

In contrast, Hirose struggled on the profit front.

Although sales reached a record high of 211.3 billion yen (up 11.5%), operating profit remained nearly flat with just a 0.8% increase to 43.0 billion yen. Soaring material costs for gold and copper hit the firm directly, causing profit growth to stall. Nonetheless, its operating margin remained exceptionally high at 20.4%, vastly outperforming its peers.

Each company pursued distinct growth strategies to secure its market position.

Hirose is accelerating its entry into the semiconductor testing sector. By acquiring the former S.E.R. Corporation, the company aims to build a solid business pillar outside of connectors. It also boasts an exceptionally strong financial foundation with an equity ratio of 87.7%.

Meiko saw its heavy investments in a new Vietnam factory pay off, enabling it to capture leading-edge trends like AI servers and autonomous driving.

Meanwhile, MinebeaMitsumi expanded its scale through aggressive M&A, including the acquisition of Linear Motion. Its ultra-precision bearings remain a core strength, with the bearing segment delivering an impressive 22.1% operating margin.

Looking ahead, the companies face three major shared risks:

• Persistent Raw Material Costs: Elevated gold and copper prices threaten to keep squeezing profit margins.
• Geopolitical Uncertainty: Tensions in the Middle East and shifting tariff policies could disrupt export markets.
• Heavy Investment Burden: Funding new factories and advanced R&D requires massive capital expenditure.

The key to future performance lies in how effectively these companies can pass on these costs to customers.

As crucial pillars supporting growth sectors like AI and autonomous driving, these companies offer highly promising career prospects.

For those seeking stability, Hirose stands out for its high margins and robust 87.7% equity ratio.

Meiko is an excellent choice for professionals eager to take on global challenges in overseas markets like Vietnam.

MinebeaMitsumi offers the sheer scale and reach of a company with revenues exceeding 1.6 trillion yen.

Candidates should align their choices with their personal career goals to find the best fit.