Chofu Seisakusho (5946) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of FY2025 rose 4.5% year-over-year to ¥21,140 million, driven by strong sales in water heaters and engineering segments.

• Operating profit dropped 59.7% year-over-year to ¥76 million due to persistently high raw material costs.

• Net income attributable to shareholders fell 86.3% year-over-year to ¥133 million, impacted by a one-time product warranty provision.

• Comprehensive income turned negative at -¥394 million, compared to ¥2,919 million in the prior year.

Financial highlights

• Gross profit was ¥4,374 million, up slightly from ¥4,361 million year-over-year.

• Ordinary profit increased 11.4% year-over-year to ¥1,496 million, supported by foreign exchange gains.

• Cash and equivalents at period-end rose to ¥5,039 million, up ¥1,417 million from the previous year-end.

• Operating cash flow surged 89% year-over-year to ¥4,872 million, mainly from reduced receivables.

Outlook and guidance

• Full-year revenue forecast revised to ¥47,000 million (+1.9% year-over-year).

• Full-year operating profit forecast at ¥1,700 million (-2.6% year-over-year); net income forecast at ¥2,200 million (-29.9% year-over-year).

• Annual dividend forecast maintained at ¥46 per share.