ERI Holdings (6083) Q2 2025 earnings summary

Executive summary

• H1 FY2025 net sales rose 3.6% YoY to ¥8,976m, while operating profit fell 32.4% to ¥565m and parent profit fell 33.0% to ¥339m.

• Results were in line with expectations; earnings were expected to be weighted toward the second half.

Financial highlights

• Net sales were ¥8,976m vs. ¥8,661m YoY; gross profit declined to ¥2,842m from ¥2,911m as cost of sales rose to ¥6,134m from ¥5,750m.

• Operating profit was ¥565m vs. ¥836m; operating margin fell to 6.3% from 9.6%.

• Ordinary profit was ¥601m vs. ¥844m; parent profit was ¥339m vs. ¥506m, and EPS was ¥44.17 vs. ¥65.60.

• Operating cash flow was ¥428m vs. ¥709m; investing cash flow was -¥941m vs. -¥148m, and ending cash was ¥5,951m vs. ¥6,566m.

Outlook and guidance

• FY2025 forecast remained unchanged: net sales ¥20,500m (+13.7%), operating profit ¥2,100m (+5.5%), ordinary profit ¥2,100m (+4.0%), and parent profit ¥1,300m (+5.4%).

• FY2025 forecast EPS was ¥165.98; the annual dividend forecast was ¥60 per share, including ¥30 interim.

• Earnings were expected to be more heavily weighted to the second half; Q2 performance was within expectations.