JTEKT (6473) Q1 2025 earnings summary

Executive summary

• Revenue rose 4.1% year-over-year to ¥464.0B in Q1 FY2024, driven by favorable exchange rates and automotive segment growth despite weak sales volumes.

• Business profit fell 38.7% to ¥8.5B due to cost inflation, higher material and labor costs, and incomplete sales price increases.

• Profit after tax declined 27.8% to ¥10.8B; EPS dropped from ¥43.69 to ¥31.53.

Financial highlights

• Operating profit decreased 40.9% year-over-year to ¥11.1B; profit before tax down 32.8% to ¥16.7B.

• Gross profit was ¥63.8B, nearly flat year-over-year despite higher revenue.

• Free cash flow improved to ¥16.3B from ¥7.3B year-over-year.

• Net cash from operating activities was ¥26.2B, down from ¥41.6B year-over-year.

• Cash and cash equivalents at quarter-end were ¥167.7B.

Outlook and guidance

• FY2024 revenue forecast unchanged at ¥1.93T (+2.0% YoY); business profit forecast at ¥75B (+2.9%).

• Profit after tax forecast at ¥35B, down 13.1% year-over-year.

• Dividend forecast maintained at ¥30/share (payout ratio 29.4%).

• Exchange rate assumptions updated to ¥148/USD and ¥162/EUR (Q2 onward: ¥145/USD, ¥160/EUR).

• Company accelerating profit improvement and cost reduction to offset inflation and weak sales.