Kurabo Industries (3106) Q2 2025 earnings summary

Executive summary

• H1 FY3/25 revenue fell 1.1% YoY to ¥71,845m; operating income rose 9.4% to ¥4,241m and ordinary income rose 12.7% to ¥5,100m, both H1 records.

• Net income attributable to owners of the parent rose 35.8% to ¥3,425m; Chemicals growth and improved Textiles profitability helped H1 results exceed revised forecasts.

Financial highlights

• H1 operating margin was 5.9% versus 5.3% a year earlier; ordinary income margin was 7.1% versus 6.2%.

• EPS was ¥193.12, up from ¥134.06; comprehensive income declined to ¥4,930m from ¥10,240m.

• Total assets were ¥191.0bn, down ¥1.76bn from March 2024; equity ratio was 62.3%.

• Cash and equivalents ended H1 at ¥14,218m; operating cash flow was ¥4,600m, investing cash flow -¥1,701m and financing cash flow -¥4,904m.

Outlook and guidance

• FY3/25 guidance was maintained at revenue ¥154,000m, operating income ¥9,600m, ordinary income ¥10,800m and net income ¥7,500m; H1 outperformance was offset by demand brought forward from H2.

• Full-year segment forecasts: Textiles revenue ¥52,000m / operating income ¥300m; Chemicals ¥67,000m / ¥4,800m; Environment & Mechatronics ¥21,300m / ¥2,800m.

• Full-year forecasts: Food & Services revenue ¥10,000m / operating income ¥600m; Real Estate revenue ¥3,700m / operating income ¥2,200m.

• FY3/25 dividend guidance rose to ¥150 per share, including a ¥90 year-end dividend.