JAPAN MATERIAL (6055) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended Dec. 31, 2024, were ¥35,352 million, down 2.2% year-over-year, while operating profit rose 24.8% to ¥6,846 million and profit attributable to owners of parent increased 25.7% to ¥4,878 million.

• Electronics business saw sluggish capital investment-driven divisions but strong performance in operations divisions, especially specialty gases and technical services; Graphics Solution business grew significantly, while Solar Power business declined slightly.

Financial highlights

• Gross profit increased to ¥10,508 million from ¥8,551 million year-over-year, with gross margin improving due to lower cost of sales.

• Operating profit margin improved, with operating profit at ¥6,846 million (up 24.8% year-over-year).

• Ordinary profit reached ¥7,126 million (up 23.9% year-over-year); basic EPS was ¥47.48, up from ¥37.79.

• Comprehensive income for the period was ¥4,937 million, up 11.9% year-over-year.

Outlook and guidance

• Full-year forecast remains unchanged: net sales of ¥50,000 million (up 2.9%), operating profit and ordinary profit of ¥10,000 million (up 28.9% and 21.5%, respectively), and profit attributable to owners of parent of ¥7,000 million (up 23.2%).

• Basic earnings per share forecasted at ¥68.13 for FY2024.

• Management notes potential risks from changes in customer capital investment schedules and possible drops in plant operating rates.