Aisin (7259) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue declined by 0.6% year-over-year to ¥1,184.1 billion, mainly due to lower powertrain sales in Europe and decreased vehicle production in Japan, while North America and ASEAN/India saw growth.

• Operating profit fell 2.2% to ¥33.7 billion, with profit attributable to owners dropping 66.6% to ¥13.6 billion, impacted by increased investments in human capital and future growth.

• Revenue and operating profit remained generally flat year-over-year, supported by FX effects and structural improvements.

• The full-year forecast is unchanged, targeting revenue of ¥4,920.0 billion and operating profit of ¥220.0 billion, driven by electrified product sales and group management reinforcement.

Financial highlights

• Q1 revenue was ¥1,184.1 billion, down 0.6% year-over-year; operating profit was ¥33.7 billion, down 2.2%.

• Profit before income taxes dropped 59.7% to ¥21.9 billion; profit attributable to owners fell 66.6% to ¥13.6 billion.

• Gross profit for the quarter was ¥119.7 billion, down from ¥114.4 billion year-over-year.

• Basic earnings per share decreased to ¥50.76 from ¥152.08 in the prior year.

• Comprehensive income for the period dropped to ¥4.85 billion from ¥162.2 billion year-over-year.

Outlook and guidance

• Full-year FY2025 revenue forecast is ¥4,920.0 billion (+0.2% YoY); operating profit forecast is ¥220.0 billion (+53.4% YoY).

• Profit for the period is expected to reach ¥130.0 billion (+43.2% YoY).

• No changes have been made to the previously announced full-year guidance.

• Electrified product sales expansion and cost structure reforms are key drivers for the outlook.