Furuya Metal (7826) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025/6 reached 13.8 billion yen, up 37.2% year-over-year, with gross income at 3.7 billion yen, up 27.2% year-over-year, mainly driven by Fine Chemical & Recycling.

• Operating income rose 35.6% to 2.77 billion yen and net income attributable to owners of parent increased 13.7% to 1.63 billion yen.

• Overseas sales accounted for 65.7% of total sales, with Europe, Asia, and North America contributing significantly.

• Recovery trends continued across most segments except some electronics and telecommunications, with increased inquiries and orders.

• The rapid appreciation of the yen toward the end of Q1 negatively impacted results, especially in supply chain support.

Financial highlights

• Revenue: 13.8 billion yen (+37.2% YoY); Gross income: 3.7 billion yen (+0.8 billion yen YoY); Operating income: 2.77 billion yen; Net income: 1.63 billion yen (+13.7% YoY).

• Operating income margin was 19.9%, and net income margin was 11.7% for the quarter.

• Gross income ratio declined to 27.1% from 31.1% sequentially.

• Total assets increased to 120.9 billion yen, up 8.1 billion yen from the previous fiscal year-end.

• Net assets decreased by 763 million yen to 59.7 billion yen, mainly due to dividend payments.

Outlook and guidance

• Full-year forecast remains unchanged: net sales of 56 billion yen (up 17.8% YoY), operating income of 12 billion yen (up 22.3% YoY), and net income attributable to owners of parent of 8.4 billion yen (up 13.4% YoY).

• Forecasted annual dividend is 96 yen per share post-split, equivalent to 288 yen pre-split.

• Progress is generally in line with the forecast for the fiscal year.

• Revenue and gross income are on a recovery trend, with Q1 FY2024 marking the bottom.