Hisaka Works (6247) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was ¥7,467 million, a 7.3% decrease year-over-year, mainly due to lower sales in the process engineering segment despite strong maintenance demand in heat exchangers and growth in chemical and battery-related valves.

• Operating profit rose 10.4% to ¥436 million, and ordinary profit increased 8.0% to ¥705 million, driven by improved sales mix and reduced provisions for unprofitable projects, offsetting higher labor and depreciation costs.

• Net income attributable to shareholders declined 4.6% to ¥455 million year-over-year.

• Orders received increased 3.1% to ¥10,145 million, with strong performance in heat exchanger maintenance and food-related process engineering projects.

Financial highlights

• Gross profit margin improved as cost controls and sales mix offset higher personnel and depreciation expenses.

• Comprehensive income for the quarter was ¥947 million, down 45.3% year-over-year.

• EPS for Q1 was ¥16.14, compared to ¥16.94 in the prior year.

• Total assets at quarter-end were ¥81,998 million, with net assets of ¥60,635 million and an equity ratio of 73.5%.

Outlook and guidance

• Full-year guidance remains unchanged: revenue of ¥37,000 million (up 9.0%), operating profit of ¥2,000 million (down 18.6%), and net income of ¥1,600 million (down 33.9%) for FY2025.

• Interim and year-end dividends are forecast at ¥21.00 each, totaling ¥42.00 per share for the year.