Daiseki (9793) Q2 2025 earnings summary

Executive summary

• Achieved record-high profit attributable to owners of parent for the first half ended August 31, 2024, despite a YoY decline in net sales and operating profit, with consolidated results exceeding forecasts.

• Progress made on VISION2030, including new operating bases, expansion of core businesses, and increased domestic market share in industrial wastewater treatment.

• Shareholder engagement enhanced through treasury share acquisitions, restricted stock compensation, and publication of the first integrated report.

• Soil remediation business saw significant declines in sales and profit due to completion of large projects from the prior year.

• Lead recycling and tank washing businesses exceeded plans, benefiting from high lead prices and profitable project completions.

Financial highlights

• Consolidated net sales: ¥32,791 million (down 8.3% YoY), gross profit: ¥11,273 million (up 2.4% YoY), operating profit: ¥7,327 million (down 5.4% YoY), profit attributable to owners of parent: ¥4,881 million (up 2.0% YoY), basic EPS: ¥101.28 (up from ¥97.16 YoY).

• 1H results exceeded forecasts for both net sales and profits; profit attributable to owners of parent reached a record high.

• Ordinary profit: ¥7,715 million (down 2.5% YoY).

• Daiseki (parent) achieved record high net sales and profits, driven by strong recycled fuel shipments despite a 1% YoY decline in wastewater received volume.

Outlook and guidance

• Full-year consolidated net sales forecast: ¥65,600 million (down 5.2% YoY); operating profit: ¥14,000 million (down 5.5% YoY); ordinary profit: ¥14,100 million (down 8.7% YoY); profit attributable to owners of parent: ¥8,700 million (down 8.0% YoY); EPS: ¥180.88.

• Aiming for ROE of 12.0% by FY ending Feb 2027 and 15.0% by FY ending Feb 2031.

• Plans to acquire treasury shares worth approximately ¥12 billion over the next 3 years.

• No revisions to previously announced forecasts.