Hirose Electric (6806) Q2 2025 earnings summary

Executive summary

• Sales increased 7.9% year-over-year for the first half of FY2025, driven by strong general industrial, automotive/mobility, and consumer equipment segments, but profit declined due to higher labor and material costs.

• Orders received rose 8.8% year-over-year, reflecting robust demand.

• Smartphone segment saw expected volume growth, but price adjustments impacted sales and profit.

• Acquisition of S.E.R., a semiconductor test equipment company, was completed in July 2025.

Financial highlights

• First half FY2025 sales: ¥1,020.2 billion (+7.9% YoY); operating profit: ¥204.6 billion (-7.9% YoY); net profit: ¥155.2 billion (-11.5% YoY).

• Operating profit margin declined to 20.1% from 23.5% YoY.

• Earnings per share fell to ¥459.37 from ¥518.17 YoY.

• Gross profit for the period was JPY 59,109 million, up from JPY 51,731 million YoY.

• Total comprehensive income surged 66.3% to JPY 21,979 million, mainly due to positive exchange differences.

Outlook and guidance

• Full-year FY2025 sales forecast revised upward to ¥2,000 billion (+5.6% YoY); operating profit forecast at ¥400 billion (-6.3% YoY).

• Net profit forecast for FY2025 is ¥300 billion (-9.2% YoY); EPS expected at ¥891.76.

• Dividend per share maintained at ¥490.