Hirose Electric (6806) Q3 2025 earnings summary

Executive summary

• Sales/revenue for FY2025 1Q–3Q rose 8.4% year-over-year to JPY 156,549 million, driven by strong industrial and automotive segments, while consumer electronics remained weak and profit margins declined due to higher material costs.

• Operating profit fell 5.0% year-over-year to JPY 32,503 million, and net profit declined 10.0% to JPY 24,812 million.

• Orders received in 3Q totaled 161.74 billion yen, up 11.6% year-over-year.

• Comprehensive income surged 42.7% to JPY 38,817 million, mainly due to significant foreign exchange gains.

• SER Corporation was consolidated in July 2025, expanding the semiconductor test products business.

Financial highlights

• Revenue: JPY 156,549 million (+8.4% YoY); Operating profit: JPY 32,503 million (–5.0% YoY); Net profit: JPY 24,812 million (–10.0% YoY).

• Operating profit margin decreased by 2.9 points to 20.8% year-over-year.

• Cost of goods sold (COGS) ratio increased from 54.4% to 57.6% year-over-year.

• Earnings per share dropped from 815.25 yen to 738.35 yen year-over-year.

• Shareholder’s equity ratio remained high at 88.3%.

Outlook and guidance

• Full-year sales/revenue forecast revised upward to JPY 205,000 million (+8.2% YoY), with operating profit forecast at JPY 41,000 million (–3.9% YoY).

• Net profit for the year expected at JPY 30,500 million (–7.7% YoY); EPS forecast at JPY 911.47.

• Dividend per share maintained at JPY 490.

• Upward revision reflects favorable foreign exchange and stronger-than-expected industrial market demand.