Aichi Steel (5482) Q2 2025 earnings summary

Executive summary

• H1 revenue was ¥144,963 million, down 2.9% year over year; operating profit fell 30.2% to ¥3,298 million and attributable net income fell 48.3% to ¥1,683 million.

• H1 results exceeded July guidance, with operating profit ¥1,900 million above forecast and attributable net income ¥1,300 million higher; revenue was ¥900 million higher.

• FY2025 operating-profit guidance rose ¥3,000 million to ¥10,000 million, reflecting H1 outperformance and lower purchase prices.

Financial highlights

• H1 sales volume was 470,000 tonnes, down 5% year over year; gross profit declined to ¥16,631 million from ¥19,328 million.

• Basic and diluted EPS were ¥85.23, down from ¥164.91 in the prior-year period.

• Net cash from operating activities was ¥8,434 million, down from ¥15,637 million; cash and cash equivalents at period-end were ¥34,245 million.

• Total assets were ¥431,093 million and total equity was ¥264,183 million at September 30, 2024.

Outlook and guidance

• FY2025 revenue forecast is ¥300,000 million, up 1.2% year over year; operating profit is ¥10,000 million, down 3.6%, and attributable net income is ¥6,400 million, down 2.9%.

• Operating-profit guidance rose ¥3,000 million from July’s ¥7,000 million outlook; attributable net income guidance increased ¥2,700 million to ¥3,700 million.

• Full-year operating profit is expected to benefit from lower purchase prices and selling prices above assumptions, more than offsetting lower sales volumes; the target is to exceed the prior-year ¥10,300 million.

• Standalone volume assumptions include slightly lower steel and forging volumes, higher stainless volume and strong electronic components; USD assumptions are ¥152 in H1 and ¥148 in H2.

• Full-year basic EPS is forecast at ¥324.11.