Kyowakogyosyo (5971) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was ¥2,578 million, a 14.8% decrease year-over-year due to reduced demand in the construction machinery sector.

• Operating profit dropped 46.2% year-over-year to ¥193 million, and net income attributable to shareholders fell 81.9% to ¥167 million.

• The company maintained efforts in cost control and sales activities amid ongoing economic uncertainty and rising material and energy costs.

Financial highlights

• Gross profit for Q1 FY2025 was ¥467 million, down from ¥642 million in the prior year.

• Operating margin declined as operating expenses remained relatively stable despite lower sales.

• Comprehensive income for the quarter was ¥42 million, a significant drop from ¥439 million in the previous year.

• Total assets at quarter-end were ¥17,715 million, with net assets of ¥15,480 million and an equity ratio of 87.4%.

Outlook and guidance

• Full-year revenue is forecast at ¥10,200 million, a 7.0% decrease year-over-year.

• Full-year net income is projected at ¥610 million, down 29.9% from the previous year.

• No changes have been made to previously announced earnings guidance.