Fuji Electric (6504) Q2 2025 earnings summary

Executive summary

• Achieved record highs in net sales, operating profit, ordinary profit, and profit attributable to owners of parent for the first half of FY2024, with net sales at ¥497.4 billion, operating profit at ¥40.3 billion, and profit attributable to owners of parent at ¥35.5 billion, driven by strong domestic demand and gains on sales of investment securities.

• Profit growth supported by increased sales, improved model mix, cost reductions, and extraordinary gains, despite higher fixed costs and raw material prices.

• Growth was aided by strong capital investment in energy and data centers, but offset by weak demand in China and mixed xEV market trends.

Financial highlights

• Net sales rose to ¥497.4 billion, up ¥5.7 billion year-over-year; operating profit increased to ¥40.3 billion, up ¥5.3 billion; ordinary profit reached ¥38.9 billion (+¥4.3 billion YoY); extraordinary profit surged to ¥16.3 billion, mainly from gain on sales of investment securities.

• Operating profit ratio improved to 8.1% from 7.1% YoY.

• Free cash flow was positive at ¥61.8 billion, with operating cash flow up ¥52.7 billion year-over-year.

• Equity ratio improved to 50.4% from 47.4% at the previous year-end; net D/E ratio at 0.1x, a record low.

• EPS for the half-year was ¥248.82, up from ¥170.43 year-over-year.

Outlook and guidance

• Full-year FY2024 net sales forecast maintained at ¥1,114.0 billion; operating profit guidance raised to ¥111.5 billion, up ¥2.5 billion from previous forecast.

• Profit attributable to owners of parent forecast increased to ¥86.0 billion.

• Interim dividend set at ¥75 per share, up ¥15 year-over-year, with potential for a higher year-end dividend.

• Sales and profit expected to reach all-time highs, with potential upside if conservative assumptions prove too cautious.

• Segment guidance: Industry and Food & Beverage Distribution profit forecasts raised, Semiconductor segment lowered.