Furuya Metal (7826) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose 27.0% year-over-year to ¥26.8 billion, with gross income at ¥7.8 billion, and operating income up 28.8% to ¥5.87 billion; net income attributable to owners of parent increased 30.4% to ¥3.89 billion.

• Thin Film and Fine Chemicals & Recycling segments drove growth, while the Thermal and Supply Chain Support segments faced declines.

• Overseas sales accounted for 62.8% of total sales, with Europe as the largest regional market.

• A 3-for-1 stock split was implemented effective July 1, 2024.

• Yen depreciation against the US dollar and stabilized precious metal markets supported revenue.

Financial highlights

• Q2 FY2025 revenue reached ¥12.9 billion, up ¥1.9 billion year-over-year, with gross income at ¥4.1 billion, up ¥0.5 billion; first-half gross profit increased 19.0% year-over-year to ¥7.87 billion.

• Q2 gross income ratio improved to 29.3%; operating income for Q2 was ¥2.36 billion, and net income was ¥2.01 billion.

• Ordinary income rose 31.0% year-over-year to ¥5.64 billion.

• Total assets grew to ¥128.52 billion, up ¥15.8 billion from the previous fiscal year-end.

• Net assets increased to ¥62.1 billion, up ¥1.6 billion from the previous fiscal year-end.

Outlook and guidance

• Full-year forecast projects net sales of ¥56.0 billion (up 17.8% year-over-year), operating income of ¥12.0 billion (up 22.3%), and net income attributable to owners of parent of ¥8.4 billion (up 13.4%).

• Annual dividend forecast is 96 yen per share post-stock split.

• Uncertainty is rising in information, communications, semiconductor, and electronics markets due to economic policy factors.

• Medium- to long-term demand for hydrogen remains strong, though capital investment plans in environment-related markets have been postponed.

• Thin Film segment expects strong HDD demand; Fine Chemicals & Recycling segment anticipates robust electrode catalyst demand.