Amada (6113) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 sales revenue reached ¥83,093 million, down 4.0% year-over-year, marking the second highest Q1 on record after last year.

• Operating profit declined 28.8% year-over-year to ¥8,569 million, impacted by lower revenue and production adjustments.

• Net income attributable to owners was ¥6,499 million, a 30.6% decrease year-over-year.

• Orders totaled ¥87.8bn, up 1.2% year-over-year, supported by strong North America and Europe performance and favorable exchange rates.

• Comprehensive income declined to ¥20,965 million from ¥25,109 million year-over-year.

Financial highlights

• Gross profit fell to ¥36,604 million, with gross margin at 44.1%.

• SG&A expenses increased 4.5% to ¥28.3bn, while fixed costs rose 7.1%.

• Operating margin dropped to 10.3% from 13.9% a year ago.

• Net income margin decreased to 7.8% from 10.8% year-over-year.

• Cash and cash equivalents increased to ¥100,651 million as of June 30, 2024.

Outlook and guidance

• Management notes growing uncertainty in economic and political environments despite some recovery in consumption and easing financial conditions.

• FY2025 revenue forecast is ¥415,000 million, up 2.8% year-over-year; operating profit forecast at ¥59,000 million.

• Net income forecast for FY2025 is ¥41,000 million, with basic EPS projected at ¥122.76.

• Dividend forecast for FY2025 is ¥62.00 per share, up from ¥60.00 in FY2024.

• Future performance may be affected by demand trends, currency fluctuations, and interest rates.