Hamamatsu Photonics (6965) Q2 2025 earnings summary

Executive summary

• Sales for FY25 1H reached 106.7 billion yen, up 2.7% year-over-year, driven by M&A and recovery in industrial and analytical instruments, but medical-bio demand remained sluggish due to high interest rates.

• Operating profit declined to 10.7 billion yen, down 46.3% year-over-year, mainly due to increased SG&A and R&D expenses from M&A activities and challenging market conditions.

• Net profit for FY25 1H was 9.9 billion yen, a decrease of 40.8% year-over-year.

• Comprehensive income decreased 31.6% year-over-year to 12.6 billion yen.

• Full-year forecasts remain unchanged, with management monitoring the indirect impact of reciprocal tariffs and global uncertainty.

Financial highlights

• Gross profit for FY25 1H was 52.5 billion yen (49.3% margin), down from 53.4 billion yen (51.4%) in FY24 1H.

• EBITDA for FY25 1H was 21.3 billion yen (20.0% margin), down from 27.6 billion yen (26.6%) in FY24 1H.

• Operating margin declined sharply due to SG&A expenses rising to 41.8 billion yen from 33.4 billion yen.

• EPS for the six months was 32.95 yen, reflecting a 2-for-1 stock split.

• Cash and cash equivalents at period end were 93.5 billion yen, up 969 million yen from the previous fiscal year end.

Outlook and guidance

• FY25 full-year sales forecast is 218.9 billion yen (+7.3% YoY), with operating profit expected at 24.1 billion yen (+25.0% YoY) and net profit at 18.0 billion yen (+28.2% YoY).

• Dividend forecast for FY25 is 38.00 yen per share (post-split basis).

• No change in full-year guidance; direct tariff impact is minor, but indirect effects and global instability are under review.

• Orders are increasing in major industries, supporting the outlook.