EIZO (6737) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2024 were JPY36.8B, down 1% year-over-year, with operating income at JPY0.8B, a 49.3% decrease, and net income at JPY0.7B, down 67.1% compared to the same period last year.

• Comprehensive income turned negative at JPY(0.28)B, compared to JPY6.57B in the prior year.

• Sales and profit declined due to weak demand in Business & Plus (B&P) and Healthcare (HC) segments, impacted by economic slowdown, stock adjustments, and postponed projects.

• Vertical & Specific (V&S) segment saw increased sales, especially in Air Traffic Control, while Amusement (AMU) sales dropped after a strong prior year.

Financial highlights

• Gross profit margin decreased to 32.5% from 33.1% year-over-year, with gross profit at JPY11.97B, down from JPY12.29B.

• Ordinary profit fell 66.6% year-over-year to JPY1.07B.

• Selling, general, and administrative expenses rose 4.6% year-over-year, driven by higher wages and R&D investment.

• Foreign exchange loss of JPY0.39B realized, compared to a gain in the previous year.

• Cash and equivalents increased to JPY18.8B, while inventories and accounts receivable declined.

Outlook and guidance

• FY2024 full-year net sales projected at JPY81.0B, up 0.7% year-over-year, with operating income expected to reach JPY4.0B.

• Net income forecasted to decrease to JPY3.4B, reflecting a 37.7% drop year-over-year.

• Earnings per share forecast for FY2025 is JPY82.61, reflecting the share split.

• B&P and HC segments expected to remain weak due to delayed demand recovery in Europe and China, while V&S sales are projected to increase.

• SG&A expenses to be controlled below original plan.