Kanamoto (9678) Q2 2025 earnings summary

Executive summary

• Consolidated second quarter net sales rose 4.5% year-over-year to ¥105,163 million, with operating profit up 38.0% to ¥8,541 million and profit attributable to owners of parent up 42.7% to ¥5,171 million.

• The construction equipment rental business saw steady demand, with segment net sales up 3.4% and operating profit up 43.4% year-over-year.

• Other businesses posted a 14.1% increase in net sales but a 5.6% decrease in operating profit.

• The company is executing its medium-term plan, "Progress 65," focusing on growth, capital efficiency, DX strategies, and sustainability.

• The company raised salary levels in Q2 to enhance recruitment and retention.

Financial highlights

• Second quarter operating profit reached ¥8,541 million, up 38.0% year-over-year; EPS was ¥147.49, up from ¥101.50.

• Cash and cash equivalents increased by ¥5,630 million from the previous year, reaching ¥56,217 million.

• EBITDA for the second quarter was ¥13,843 million, reflecting strong operational performance.

• Comprehensive income remained flat at ¥5,111 million.

Outlook and guidance

• Revised full-year guidance projects net sales of ¥212,500 million (up 2.5% year-over-year), operating profit of ¥17,100 million (up 17.4%), and profit attributable to owners of parent of ¥10,500 million (up 16.5%).

• Full-year earnings per share forecast is ¥300.49.

• Dividend forecast for FY2025 is ¥90 per share, up ¥10 from the previous forecast.

• The company targets a total payout ratio of over 50% and plans continued stable dividends and flexible treasury share purchases.