GS Yuasa (6674) Q2 2025 earnings summary

Executive summary

• Net sales for FY2024 1H rose 3.0% year-over-year to ¥264.5 billion, with operating income up 24.0% to ¥15.7 billion and net profit up 57.9% to ¥9.4 billion, driven by higher sales volumes and price revisions in key segments.

• Growth was supported by strong domestic and overseas automotive battery sales, robust demand for industrial batteries, and improved equity in earnings of affiliates.

• The company revised its full-year forecast upward for most segments except Automotive Lithium-ion Batteries, which faced profit declines due to lithium price drops.

Financial highlights

• Operating income margin improved to 5.9% from 4.9% year-over-year; EPS increased 26.7% to ¥93.81.

• Gross profit rose by ¥4.9 billion to ¥60.0 billion; ordinary income increased 20.7% to ¥14.5 billion.

• Free cash flow was negative ¥31.6 billion due to significant capital investments and land acquisition for BEV battery manufacturing.

• Cash and cash equivalents at period-end were ¥49,358 million, down ¥10,948 million from March 31, 2024.

Outlook and guidance

• Full-year net sales forecast maintained at ¥590.0 billion, with operating income expected at ¥44.0 billion (7.5% margin).

• Profit attributable to owners of parent is projected at ¥26,000 million, down 18.9% from the previous year.

• Automotive Batteries (Japan/Overseas) and Industrial Batteries forecasts revised upward due to strong 1H performance; Automotive Lithium-ion Batteries forecast revised downward.

• No revisions have been made to the previously announced earnings or dividend forecasts.

• Risks in 2H include geopolitical tensions, exchange rate volatility, and raw material price fluctuations.