Hamamatsu Photonics (6965) Q1 2025 earnings summary

Executive summary

• FY25 Q1 sales and profit declined year-over-year due to a high order backlog in FY24 Q1 and sluggish market conditions, but results were within plan.

• Net sales for Q1 FY2025 were JPY 50,587 million, a decrease of 5.5% year-over-year, with operating profit down 62.7% and net income down 53.2%.

• Comprehensive income rose 37.4% year-over-year to JPY 9,700 million, driven by foreign currency translation gains.

• The business environment was mixed, with domestic recovery but global uncertainties, especially in China and due to high interest rates abroad.

• Market remained soft across most applications and regions in Q1.

Financial highlights

• Sales decreased 5.5% year-over-year to ¥50.5B; operating profit fell 62.7% to ¥4.2B; net profit dropped 53.2% to ¥4.1B.

• Gross margin declined from 52.9% to 48.3% year-over-year.

• Ordinary profit dropped 57.3% to JPY 5,030 million; profit attributable to owners was JPY 4,188 million.

• EPS for the quarter was JPY 13.76, reflecting a 2-for-1 stock split.

• Sequential sales and operating profit have declined for several quarters.

Outlook and guidance

• Full-year FY25 plan remains unchanged; sales projected to rise 7.3% to ¥218.9B, but operating and net profit expected to decrease 25.0% and 28.2% respectively.

• FY2025 net sales forecast is JPY 218,900 million, up 7.3% year-over-year; operating profit expected at JPY 24,100 million, up 25%.

• No change to previously announced forecasts; exchange rate assumptions: USD/JPY 145, EUR/JPY 155, RMB/JPY 20.

• Demand expected to vary by application, with some improvement in analytical and semiconductor segments.