CMC Corporation (2185) Q2 2025 earnings summary

Executive summary

• Revenue and operating profit declined year-over-year due to a lull in client product lifecycles and changes in model launch plans, but ordinary profit and net profit increased, aided by one-time gains and cost controls.

• Full-year forecasts were revised downward due to market uncertainty, but returns to shareholders remain unchanged.

• The group continues to pursue growth through digital transformation, new business models, and global reorganization.

Financial highlights

• FY2025 first half revenue was ¥8,935 million, down 7.3% year-over-year; operating profit was ¥1,167 million, down 24.1%.

• Ordinary profit rose 1.4% to ¥1,482 million; net profit attributable to owners of parent increased 2.6% to ¥980 million, supported by gains from investment securities sales and forex.

• EPS increased to ¥74.28; ROE was 4.7%; equity ratio improved to 80.0%.

• Gross profit margin decreased to 13.1%; gross profit for the period was ¥3,214 million.

• Cash and cash equivalents at period-end were ¥11,782 million, a decrease of ¥47 million from the previous year-end.

Outlook and guidance

• FY2025 full-year revenue forecast revised to ¥18,000 million (down 7.8% year-over-year); operating profit forecast at ¥2,400 million (down 19.3%).

• Ordinary profit forecast at ¥2,600 million (down 18.3%); net profit forecast at ¥1,850 million (down 11.0%).

• EPS forecast at ¥140.16; ROE forecast at 8.7%; annual dividend forecast maintained at ¥44 per share.