Aida Engineering (6118) Q2 2025 earnings summary

Executive summary

• Net sales rose 8.5% year-over-year to ¥37,506 million in the first half, driven by growth in medium/large presses and services, and yen depreciation.

• Operating income surged 101.8% year-over-year to ¥2,881 million, with net income up 104.3% to ¥2,346 million, reflecting higher sales, improved gross margins, and gains from investment securities.

• Orders declined 16.8% year-over-year to ¥35,756 million, with order backlog down 2.3%, mainly due to reduced demand for high-speed presses and industry-wide export weakness.

Financial highlights

• Gross profit increased to ¥8,075 million from ¥6,324 million year-over-year, with the gross profit ratio improving by 3.2 points to 21.5%.

• Operating income margin rose from 4.1% to 7.7% year-over-year.

• Comprehensive income fell 36.5% year-over-year to ¥2,036 million due to negative other comprehensive income items.

• Shareholders’ equity ratio improved to 67.0% from 65.2% at the previous fiscal year-end.

• Cash and cash equivalents at period-end were ¥27,738 million, down ¥4,506 million from the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast is ¥74,000 million, a 1.7% increase year-over-year.

• Operating income forecast revised to ¥5,300 million, with net income expected at ¥4,200 million, supported by extraordinary income from investment securities sales.

• Orders are expected to decrease 6.5% year-over-year due to continued weakness in high-speed press demand, but sales and profit growth are anticipated from customized presses and services.

• Dividend forecast maintained at ¥30 per share.