Japan Aviation Electronics Industry (6807) Q2 2025 earnings summary

Executive summary

• Net sales for 1H FY2024 were ¥113.5 billion, nearly flat year-over-year, driven by growth in automotive connectors and aerospace, offsetting declines in mobile devices and industrial markets.

• Operating profit rose to ¥9.2 billion, up 36% year-over-year, with improved profitability in automotive harnesses and cost reductions.

• Ordinary profit declined to ¥8.1 billion, down 6% year-over-year, due to foreign exchange losses from yen appreciation.

• Profit attributable to owners of parent was ¥6.6 billion, down 1% year-over-year.

• Comprehensive income dropped sharply to ¥3.2 billion, mainly due to negative foreign currency translation adjustments.

Financial highlights

• Net sales: ¥113.5 billion; operating profit: ¥9.2 billion (+2.4 billion); ordinary profit: ¥8.1 billion (−0.5 billion); net profit: ¥6.6 billion (−0.1 billion).

• Operating margin improved to 8.1% from 6.0% year-over-year.

• Free cash flow for 1H FY2024 was ¥10.6 billion; cash and cash equivalents at period end were ¥55.9 billion, down ¥12.4 billion from March 31, 2024.

• Capital investments for 1H FY2024 were ¥8.2 billion; depreciation was ¥10.1 billion.

• Basic earnings per share for the period were ¥98.45, up from ¥73.64 in the prior year.

Outlook and guidance

• Full-year FY2024 guidance maintained: net sales projected at ¥230 billion, operating profit at ¥17 billion, ordinary profit at ¥16 billion, and net profit at ¥12.5 billion.

• Exchange rate assumption for 2H FY2024 is 145 JPY/USD; year-end dividend forecast is ¥30 per share, annual total ¥60 per share.

• Demand for mobile device components expected to dip in Q3 and recover in Q4; automotive and industrial demand to rebound in Q4.

• Industrial & infrastructure demand recovery anticipated in Q4, with full recovery targeted next fiscal year.