Fuji Electric (6504) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 reached ¥236.4 billion, up 1% year-over-year, setting a new record high, with operating profit at ¥17.3 billion and ordinary profit at ¥18.3 billion, both record highs.

• Profit attributable to owners of parent declined to ¥11.5 billion due to lower extraordinary gains compared to the prior year.

• Growth was driven by strong demand in Industry, Semiconductors, and Food and Beverage Distribution segments, offsetting declines in the Energy segment.

• Achieved record highs for net sales, operating profit, and ordinary profit despite higher fixed costs and raw material prices, supported by improved model mix and cost reductions.

• Orders received increased significantly, up ¥23.9 billion year-over-year to ¥296.1 billion.

Financial highlights

• Net sales: ¥236.4 billion (+1% year-over-year); operating profit: ¥17.3 billion (+17.7%); ordinary profit: ¥18.3 billion (+20.7%).

• Operating profit increase was driven by cost reductions, favorable FX, and higher selling prices, offsetting raw material cost rises.

• Extraordinary profit dropped to ¥0.3 billion due to lower gains on sales of investment securities.

• Free cash flow was positive at ¥39.2 billion, up ¥32.5 billion year-over-year.

• EPS for Q1 FY2024 was ¥80.34, down from ¥86.14 year-over-year.

Outlook and guidance

• Full-year FY2024 guidance maintained for net sales at ¥1,114.0 billion and operating profit at ¥109.0 billion; profit attributable to owners of parent forecast raised to ¥80.5 billion.

• Segment guidance revised: upward for Food and Beverage Distribution, downward for Semiconductors.

• FX assumptions unchanged; review planned for October, with forecasts to be reexamined after six-month results.

• Net profit forecast increased due to earlier and larger sales of investment securities.