Kyocera (6971) Q1 2025 earnings summary

Executive summary

• Sales revenue for 1Q Fiscal 2025 rose 4.1% year-over-year to ¥498.9 billion, driven by a weaker yen and higher sales across all segments.

• Profits declined due to higher fixed costs, labor, depreciation, and R&D expenses.

• Profit before income taxes fell 5.4% to ¥47.8 billion, and profit attributable to owners decreased 1.6% to ¥36.8 billion.

• Segment profit grew in Solutions but declined in Core and Electronic Components.

Financial highlights

• Operating profit for 1Q Fiscal 2025 was ¥21.0 billion, down 18.4% year-over-year, with an operating margin of 4.2%.

• Gross profit increased 7.0% to ¥145.0 billion, with gross margin at 29.1%.

• EPS was ¥26.12, reflecting a 4-for-1 stock split.

• Capital expenditures increased 6.5% to ¥31.9 billion, and R&D expenses rose 18.2% to ¥29.5 billion.

• Cash and cash equivalents at quarter-end were ¥418.1 billion, down ¥6.7 billion from March 2024.

Outlook and guidance

• Fiscal 2025 sales revenue is forecast at ¥2,050.0 billion, up 2.3% from Fiscal 2024.

• Operating profit is projected to rise 18.4% to ¥110.0 billion, and profit attributable to owners is expected to increase 10.8% to ¥112.0 billion.

• EPS forecast for Fiscal 2025 is ¥79.51.

• Capital expenditures for Fiscal 2025 are expected to reach ¥200.0 billion, up 23.7% year-over-year.

• Annual dividend forecast maintained at ¥50 per share.