JTEKT (6473) Q2 2025 earnings summary

Executive summary

• Revenue and business profit declined year-over-year due to weak sales in Japan and China, and persistent loss costs from low productivity in North America.

• Net profit attributable to owners dropped 73% to ¥6.2B for the six months ended September 30, 2024.

• Market uncertainty persists due to geopolitical tensions and exchange rate risks.

• Dividend forecast for FY2024 was revised upward to 50 yen per share, reflecting a 14 yen increase from last year.

Financial highlights

• Q2 FY2024 revenue: ¥918.4B, down 0.4% year-over-year; business profit: ¥25.6B, down 18.7%.

• Operating profit fell 26.2% to ¥25.5B; net profit attributable to owners dropped 73% to ¥6.2B.

• EPS decreased from 67.39 yen to 18.17 yen year-over-year.

• Free cash flow for Q2 was negative ¥18.3B, a significant decline from ¥41.9B last year.

• Equity attributable to owners of the parent was ¥784.0B, with a ratio to total assets of 50.4%.

Outlook and guidance

• FY2024 revenue forecast revised to ¥1,830B (up 3.3% year-on-year), business profit forecast cut to ¥50B (down over 31%).

• Net profit forecast for FY2024 reduced to ¥20B, a 42.9%–50.3% decrease year-over-year.

• Basic earnings per share forecast at ¥58.31 for the year ending March 31, 2025.

• Dividend forecast raised to 50 yen per share for the full year.

• Exchange rate assumptions: 148 yen/USD and 162 yen/EUR.