DAIKO XTECH (8023) Q2 2025 earnings summary

Executive summary

• H1 revenue rose 1.3% YoY to ¥20.827bn, supported by large-project sales and recurring business; orders fell 3.9% to ¥21.789bn and backlog declined 11.6% to ¥13.676bn.

• Operating profit fell 39.1% YoY to ¥849m as lower gross profit from fewer high-margin large projects outweighed lower SG&A.

• Net income attributable to shareholders fell 35.5% to ¥569m, reflecting lower profitability and higher tax expenses.

• FY2025 guidance was unchanged; H1 progress was described as on plan, with operating profit weighted toward H2.

Financial highlights

• Revenue was ¥20.827bn, up 1.3% YoY; gross profit fell ¥654m to ¥4.922bn and gross margin declined to 23.6% from 27.1%.

• SG&A declined ¥109m to ¥4.072bn; operating profit was ¥849m, down 39.1%, and operating margin fell to 4.1% from 6.8%.

• Ordinary profit was ¥894m, down 37.3%; net income attributable to shareholders was ¥569m, down 35.5%, and EPS was ¥43.71 versus ¥66.83.

• H1 orders were ¥21.789bn, down ¥877m YoY; backlog was ¥13.676bn, down ¥1.796bn.

Outlook and guidance

• FY2025 forecast unchanged: revenue ¥41.0bn, operating profit ¥2.2bn, ordinary profit ¥2.25bn and net income ¥1.45bn.

• H1 achieved 50.8% of revenue guidance and 38.6% of operating profit guidance; operating profit tends to be weighted toward H2.

• Management expects performance to track plan; forecasts may be revised if business conditions or assumptions change.