JVCKENWOOD (6632) Q2 2025 earnings summary

Executive summary

• Revenue for H1 FYE 3/'25 increased 1.1% year-over-year to ¥176.6B, driven by strong sales in the Safety & Security Sector and solid Overseas OEM Business in Mobility & Telematics Services.

• Core operating income reached a record high for the first half since management integration, rising 23.9% YoY to ¥13.0B, with all three sectors posting profit increases.

• Profit attributable to owners surged 64.4% YoY to ¥11.1B.

• Operating profit, profit before tax, and net income all saw significant year-over-year growth.

• Full-year earnings forecast for FYE 3/'25 was revised upward due to strong sector performance.

Financial highlights

• H1 FYE 3/'25 revenue: ¥176.6B (+1.1% YoY); gross profit: ¥58.1B (32.9% margin).

• Core operating income: ¥13.0B (+23.9% YoY); operating profit: ¥13.6B (+38.2% YoY).

• Profit before tax: ¥14.5B (+48.6% YoY); profit attributable to owners: ¥11.1B (+64.4% YoY).

• EBITDA: ¥23.8B (13.5% margin, +23.7% YoY).

• Basic earnings per share increased to ¥73.55 from ¥43.04 YoY.

Outlook and guidance

• Full-year revenue forecast revised to ¥364.0B (+1.3% YoY); core operating income forecast to ¥23.0B (+16.7% YoY).

• Operating profit forecast: ¥22.0B (+20.7% YoY); profit before tax: ¥23.0B (+26.1% YoY); net income: ¥17.0B (+30.6% YoY).

• ROE expected to rise to 14.0%.

• Year-end dividend forecast: ¥8/share; interim dividend: ¥5/share; full-year dividend forecast maintained at ¥13.00/share.

• All three business sectors expected to maintain strong performance in the second half.