Eiwa (9857) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended September 2024 increased by 5.2% year-over-year to ¥20,195 million, with operating profit up 21.7% and net profit attributable to shareholders rising 32.5%, supported by strong demand in industrial machinery, process control equipment, and a one-time compensation gain.

• Growth was driven by robust orders for special vehicles related to disaster prevention, equipment upgrades in the chemical and electric power sectors, and increased sales to the shipbuilding industry.

• Profitability improved due to a focus on high value-added sales strategies and execution of the mid-term plan emphasizing digital transformation and green innovation.

• A one-time transfer/relocation compensation gain of ¥125 million contributed to higher net profit.

• The company continued to focus on infrastructure-related business and digital transformation.

Financial highlights

• Revenue: ¥20,195 million (+5.2% YoY); Operating profit: ¥1,087 million (+21.7% YoY); Ordinary profit: ¥1,118 million (+18.3% YoY); Net profit: ¥829 million (+32.5% YoY).

• Gross profit rose 8.4% YoY to ¥3,560 million, reflecting higher-margin sales.

• Earnings per share for the interim period were ¥131.14, up from ¥99.00 a year earlier.

• Cash and equivalents at period end: ¥7,546 million, up ¥1,003 million from previous year.

• Shareholder equity ratio improved to 53.6% from 49.3% at previous year-end.

Outlook and guidance

• Full-year revenue forecast is ¥44,000 million (+1.6% YoY), with operating profit of ¥2,350 million (+1.1%) and net profit of ¥1,680 million (+0.7%).

• No changes to previously announced earnings guidance.

• Segment forecasts: Industrial measurement/control equipment ¥21,400 million (+1.9%), industrial machinery ¥16,950 million (+3.8%).

• Annual dividend forecast is ¥70 per share, up from ¥65 in the prior year.