Mitsui High-tec (6966) investor relations material

Executive summary

• Net sales rose 4.2% year-over-year to JPY 108,334 million, driven by strong electric vehicle-related demand and productivity improvements.

• Operating profit declined 19.2% year-over-year to JPY 6,347 million, mainly due to upfront costs for growth, higher management costs, and foreign exchange losses.

• Ordinary profit fell 36.6% to JPY 5,978 million, and net profit dropped 40.8% to JPY 4,189 million.

• The economic environment showed gradual recovery, but uncertainty persists due to US policy trends, a slowing Chinese economy, and unstable international conditions.

• Performance was generally in line with expectations despite external uncertainties such as U.S. tariff policy changes.

Financial highlights

• EBITDA decreased 11.6% year-over-year to JPY 13,085 million; EBITDA margin fell to 12.1%.

• Capital investment increased 16.0% to JPY 15,700 million.

• Gross profit was JPY 15,740 million, nearly flat year-over-year; gross margin stable at approximately 14.5%.

• Comprehensive income for the period was JPY 1,197 million, down from JPY 11,261 million a year earlier, mainly due to a negative foreign currency translation adjustment.

• Total assets increased to JPY 234,394 million as of July 31, 2025, from JPY 223,698 million at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast for fiscal year ending January 31, 2026, is JPY 216,000 million (up 0.5% year-over-year, down 6.1% from initial forecast).

• Operating profit is projected at JPY 11,000 million (down 31.3%), ordinary profit at JPY 10,000 million (down 41.0%), and net profit at JPY 7,000 million (down 42.7%).

• Basic earnings per share forecast is JPY 38.30.

• Electrical Parts Business sales and operating income expected to fall short of initial forecasts due to lower raw material prices and rescheduled mass production.

• Dividend forecast unchanged at 18 yen per share for FY2025.