JAPAN MATERIAL (6055) Q2 2025 earnings summary

Executive summary

• Q2 FY2024 net sales rose 1.0% year-over-year to ¥23,053 million, with operating profit up 43.0% to ¥4,427 million and ordinary profit up 24.7% to ¥4,286 million.

• Profit attributable to owners of parent increased 27.6% year-over-year to ¥2,925 million.

• Growth driven by strong operation segment and robust Electronics and Graphics Solution segments, offsetting a decline in initial segment sales.

• Electronics segment remains dominant, accounting for 95.7% of net sales; graphics solution segment grew 31.3% year-over-year.

• Solar Power business remained stable with three plants in operation.

Financial highlights

• Operating profit margin improved to 19.2% from 13.6% year-over-year.

• Comprehensive income for the period was ¥3,697 million, up 40.7% year-over-year.

• Basic earnings per share increased to ¥28.48 from ¥22.33 year-over-year.

• Cash and deposits increased 70.5% from March 2024 to ¥10,436 million.

• Net cash provided by operating activities was ¥7,650 million, with a net increase in cash and cash equivalents of ¥3,841 million.

Outlook and guidance

• FY2024 net sales forecast at ¥50,000 million, up 2.9% year-over-year; operating profit projected to rise 28.9% to ¥10,000 million.

• Ordinary profit expected to reach ¥10,000 million, up 21.5% year-over-year.

• Dividend forecast for FY2024 is ¥22.00 per share.

• Cautions remain regarding potential changes in customer capital investment schedules and possible drops in plant operating rates.

• Operation segment sales forecast to comprise 73.1% of total, targeting a stable earning ratio of 85% in the future.