JAPAN MATERIAL (6055) Q1 2025 earnings summary

Executive summary

• Net sales rose 8.0% year-over-year to ¥11,156 million for the three months ended June 30, 2024, driven by strong demand in generative AI and improved semiconductor supply-demand balance.

• Operating profit increased 48.3% year-over-year to ¥2,001 million, with ordinary profit up 40.9% to ¥2,246 million and profit attributable to owners of parent up 38.0% to ¥1,539 million.

• Electronics business saw robust performance in specialty gas sales and technical services, offsetting sluggish capital investment-related divisions.

• Graphics Solution business achieved strong sales growth, while Solar Power business experienced a slight decline in both sales and profit.

Financial highlights

• Gross profit increased to ¥3,240 million from ¥2,312 million year-over-year, with gross margin improving.

• Basic earnings per share rose to ¥14.98 from ¥10.87 year-over-year.

• Comprehensive income grew 64.4% year-over-year to ¥1,908 million.

• Total assets at June 30, 2024 were ¥56,663 million, up ¥236 million from March 31, 2024.

• Net assets stood at ¥47,879 million, with an equity ratio of 83.9%.

Outlook and guidance

• Full-year FY2024 guidance maintained: net sales ¥50,000 million (+2.9% year-over-year), operating profit ¥10,000 million (+28.9%), ordinary profit ¥10,000 million (+21.5%), profit attributable to owners of parent ¥7,000 million (+23.2%).

• No change to previously released forecasts; potential risks include changes in customer capital investment schedules and plant operating rates.