Mabuchi Motor (6592) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of 2025 were ¥94.9 billion, down 0.4% year-over-year, with automotive product sales impacted by the end of older product lines and yen appreciation, while life and industrial product sales increased due to strong demand in health and medical sectors; motor sales volume rose 0.1%.

• Operating income rose 32.2% year-over-year to ¥12.1 billion, driven by improved selling prices, product mix, and cost reductions.

• Ordinary income dropped 40.4% year-over-year to ¥11,566 million, mainly due to foreign exchange losses.

• Profit attributable to owners of parent decreased 28.5% year-over-year to ¥8,943 million, though it was 16.2% above forecast.

Financial highlights

• Gross profit margin improved to 29.9% from 25.6% year-over-year, with gross profit at ¥28,355 million.

• Comprehensive income was negative ¥6,557 million, compared to ¥37,086 million in the prior year, mainly due to foreign currency translation adjustments.

• Cash and cash equivalents at period end were ¥123,997 million, down from ¥130,567 million at the start of the period.

• Net cash provided by operating activities was ¥11,622 million, a decrease of ¥2.5 billion year-over-year.

• Operating income margin increased to 12.8% from 9.6% year-over-year.

Outlook and guidance

• Full-year 2025 net sales forecast is ¥193.0 billion, down 1.6% year-over-year, with a conservative outlook for automotive products due to potential production stalls and U.S. tariff impacts.

• Operating income for 2025 is projected at ¥21.6 billion, nearly flat year-over-year, as gains from pricing and mix are offset by higher costs and lower volumes.

• Profit attributable to owners of parent is forecast to rise 28.6% year-over-year to ¥16.5 billion.

• Dividend per share is expected to reach a record ¥78, with interim and year-end dividends of ¥39 each.