Ferrotec (6890) Q2 2025 earnings summary

Executive summary

• Consolidated net sales for Q2 FY3/25 reached ¥135.2 billion, up 28% year-over-year, with operating income at ¥14.3 billion, up 9.3% year-over-year, and net profit attributable to shareholders up 9.5% to ¥9.19 billion.

• Semiconductor equipment-related and electronic devices drove growth, with strong demand from China and the AI server market.

• New factories in Malaysia and China began operations, supporting growth and meeting ex-China production needs.

• Segment reporting was revised, with car electronics now a separate segment.

• Shareholder returns enhanced via dividend increase and share buyback.

Financial highlights

• Net sales: ¥135.2 billion (+28.1% YoY); Gross profit: ¥38.1 billion (+11.1% YoY); Operating income: ¥14.3 billion (+9.3% YoY); Net income attributable to owners: ¥9.2 billion (+9.5% YoY).

• Operating profit margin was 10.5%, and net profit margin was 6.8%.

• Comprehensive income surged 85.4% YoY to ¥45.86 billion, mainly due to foreign currency translation gains.

• Depreciation rose to ¥11.2 billion (+42.1% YoY).

• Total assets increased to ¥592.79 billion, up ¥82.76 billion from the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast revised upward to ¥265 billion (+19.1% YoY), with operating and ordinary profit both projected at ¥26 billion.

• Net profit forecast for the year is ¥16 billion, up 5.6% YoY; EPS forecast is ¥340.29.

• Dividend forecast raised to ¥110 per share for the year.

• Medium-term plan targets net sales of ¥300 billion in FY3/26 and ¥380 billion in FY3/27, with ROE goal of 15%.

• Profitability expected to be pressured by increased costs and declining margins in some segments.