CTI Engineering Co (9621) Q2 2025 earnings summary

Executive summary

• Orders received increased by 11.7% year-over-year to 60,917 million yen, driven by strong domestic and overseas demand in core and growth areas.

• Sales remained steady at 50,794 million yen, nearly matching the same period last year.

• Operating income decreased by 12% year-over-year to 5,976 million yen, due to higher SG&A expenses and cost of sales deterioration.

• Net income attributable to owners declined by 22.6% year-over-year to 3,779 million yen, impacted by extraordinary losses such as impairment of idle assets and waivers of claims.

• The group launched its Mid-Term Management Plan 2027, focusing on business portfolio transformation and foundation rebuilding.

Financial highlights

• Orders received: JPY 60,917 million (+11.7% YoY); Sales: JPY 50,794 million (+0.1% YoY).

• Operating income: JPY 5,976 million (-12.0% YoY); Net income attributable to owners: JPY 3,779 million (-22.6% YoY).

• Ordinary profit: JPY 6,034 million, about 60% of full-year forecast.

• Net income per share was 136.11 yen, reflecting a 2-for-1 stock split.

• Operating income margin at 11.8% (down from 13.4% YoY).

Outlook and guidance

• Full-year sales forecast is 100,000 million yen, up 2.4% year-over-year; operating and ordinary profit both forecast at 10,000 million yen.

• Net income forecast revised downward to JPY 6,300 million due to extraordinary losses.

• Dividend forecast maintained at JPY 75 per share, with a payout ratio of 33.1%.

• Carryover order backlog at Q2 end increased by 8% year-over-year.

• Progress ratios for orders, sales, and operating income are all around 60% of the full-year plan.