Estic (6161) Q2 2025 earnings summary

Executive summary

• H1 FY2025 revenue rose 16.2% YoY to ¥3,778m, driven by domestic screw-tightening equipment sales and large-scale orders.

• Operating profit fell 5.5% to ¥623m as a higher mix of lower-margin products compressed margins; net profit was ¥439m.

• Domestic sales surged while overseas sales softened; overseas sales were 60.2% of revenue.

Financial highlights

• Revenue was ¥3,778m, up ¥527m YoY; gross profit rose ¥107m to ¥1,621m.

• Operating profit was ¥623m, ordinary profit ¥655m, and net profit ¥439m; each declined YoY.

• Gross margin fell to 42.9% from 46.6%; operating margin declined to 16.5% from 20.3%.

• EPS was ¥44.17, down from ¥47.89; ordinary margin was 17.3%, down from 21.2%.

• Total assets were ¥11,137m; equity ratio was 86.6%. Cash and equivalents increased ¥1,006m to ¥2,578m.

Outlook and guidance

• FY2025 guidance remains unchanged: revenue ¥7,876m, operating profit ¥1,620m, ordinary profit ¥1,637m, and net profit ¥1,146m.

• FY2025 EPS forecast is ¥115.25; dividend forecast is ¥27/share, with a 23.4% payout ratio.

• Forecast sales: hand nutrunner ¥4,893m (+9.1%), nutrunner ¥1,070m (-18.8%), screw-tightening equipment ¥1,300m (+56.3%), servo press ¥160m (+100%).