Kyocera (6971) Q2 2025 earnings summary

Executive summary

• Sales revenue for 1H FY2025 rose 1.3% year-over-year to ¥998.6 billion, driven by growth in Electronic Components and Solutions segments, aided by a weaker yen.

• Operating profit declined 29.9% to ¥37.9 billion, and profit attributable to owners fell 36.1% to ¥36.1 billion, mainly due to lower utilization and higher labor costs.

• Segment performance was mixed: Solutions saw profit growth, while Core Components and Electronic Components profits dropped sharply due to weak demand in Organic Packages, Boards, and KAVX.

• Management revised FY2025 forecasts downward, citing slow recovery in Organic Packages and KAVX businesses.

• Stock split (4-for-1) effective January 1, 2024; EPS and dividend figures adjusted accordingly.

Financial highlights

• Operating profit for 1H FY2025 was ¥37.9 billion (3.8% margin), down from ¥54.0 billion (5.5%) year-over-year.

• Net profit attributable to owners declined 36.1% to ¥36.1 billion; EPS dropped to ¥25.61 from ¥39.90 year-over-year.

• R&D expenses increased 14.1% to ¥57.9 billion, and capital expenditures rose 4.5% to ¥68.9 billion.

• Cash and cash equivalents decreased by ¥37.9 billion to ¥386.9 billion as of September 30, 2024.

• Interim dividend maintained at ¥25 per share; year-end dividend forecast unchanged.

Outlook and guidance

• FY2025 sales revenue forecast revised to ¥2,020 billion (up 0.8% year-over-year), with operating profit forecast at ¥68 billion (down 26.8%).

• Net profit forecast cut to ¥71 billion (down 29.8%); EPS forecast at ¥50.40.

• Capital expenditures and R&D for FY2025 revised to ¥160 billion and ¥120 billion, respectively.

• Recovery in key businesses not expected until after 3Q FY2025.

• Segment forecasts revised downward due to delayed demand recovery.