Harmonic Drive Systems (6324) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 decreased 13.4% year-over-year to ¥12,998 million, reflecting lower demand in key industrial sectors despite some recovery in orders and growth in automotive applications.

• Operating loss of ¥238 million and net loss attributable to owners of parent of ¥283 million, compared to profits in the prior year, mainly due to decreased sales.

• Comprehensive income fell 33.4% year-over-year to ¥2,002 million.

Financial highlights

• Gross profit declined to ¥3,409 million from ¥4,690 million year-over-year.

• Operating margin turned negative, with an operating loss of ¥238 million versus a profit of ¥911 million last year.

• Ordinary loss of ¥134 million, down from a profit of ¥1,110 million year-over-year.

• Basic EPS was negative at ¥(2.98), compared to ¥2.44 in the prior year.

• Net sales outside Japan accounted for 66.6% of consolidated net sales.

Outlook and guidance

• Full-year FY2025 guidance maintained: net sales of ¥58,500 million (+4.8% YoY), operating profit of ¥2,700 million, and basic EPS of ¥21.06.

• No change to previously announced forecasts; actual results may differ due to various factors.