DMG Mori (6141) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 sales revenue was JPY 114.0 bn, down 14.2% year-over-year, with operating profit at JPY 1.8 bn, an 85.5% decline, and net profit at JPY 0.2 bn, reflecting recovery from prior year losses.

• Order intake rose 5.4% sequentially to JPY 120.7 bn, with average order price per unit up to JPY 78.5 mil, nearing the 2030 target.

• Minimal impact from U.S. tariffs; demand in Europe is recovering due to government incentives.

• Environmental and HR initiatives recognized with top rankings for climate change, water security, and health management.

• Acquisition of MIYAWAKI MACHINERY CO., LTD. and reopening of Nara Campus as a major automation system solution factory were key developments.

Financial highlights

• Operating profit margin dropped to 1.6% from 9.4% in Q1 FY2024, mainly due to lower sales and FX losses.

• Order backlog at end of March 2025 was JPY 223.5 bn, down from JPY 263.0 bn a year earlier.

• MRO, spare parts, and engineering order intake stable at JPY 30.1 bn, representing 25% of total orders.

• Total assets at March 31, 2025: JPY 783,625 mil; equity ratio: 38.9%.

• Operating free cash flow was negative JPY 8.9 bn for Q1, but full-year surplus of JPY 15.0 bn is expected.

Outlook and guidance

• FY2025 full-year guidance maintained: sales revenue JPY 510.0 bn (-5.7% y/y), operating profit JPY 38.0 bn (-13.1% y/y), net profit JPY 20.0 bn.

• Dividend per share planned at 105 yen.

• 78% of FY2025 machine tool sales plan already covered by order backlog.

• Order forecast for FY2025 remains at JPY 530.0 bn, a 6.9% increase from last year.

• No change in long-term strategy; sales and profit expected to recover from FY2026, with FY2025 as the bottom.