Macnica Holdings (3132) Q3 2025 earnings summary

Executive summary

• Net sales for Q1–Q3 FY2024 were ¥781.8 billion, down 2–2.3% year-over-year, with operating income at ¥33.2 billion, down 35–35.3%, and net income attributable to owners at ¥22.6 billion, down 35.6–36%.

• Profitability was impacted by a decline in high-margin industrial equipment business, increased SG&A expenses, and the consolidation of Glosel Co., Ltd.

• Semiconductor business remained weak due to sluggish industrial equipment demand and delayed recovery in China, while network business showed strong growth, especially in endpoint security.

• The electronics industry saw strong demand for AI-related semiconductors, but industrial and telecom markets were affected by Chinese market stagnation and inventory adjustments.

• Full-year FY2024 forecast and dividend guidance remain unchanged.

Financial highlights

• Q3 net sales: ¥262.8 billion, up 4% sequentially; Q1–Q3 net sales: ¥781.8 billion, down 2–2.3% year-over-year.

• Q3 operating income: ¥10.8 billion, down 19% year-over-year; Q1–Q3 operating income: ¥33.2 billion, down 35–35.3%.

• Q3 net income: ¥7.4 billion, down 21% year-over-year; Q1–Q3 net income: ¥22.6 billion, down 35.6–36%.

• Gross profit for the period was ¥91.27 billion, down from ¥101.35 billion year-over-year.

• Cash flows from operating activities for Q1–Q3: ¥17.2 billion, down 54% year-over-year.

Outlook and guidance

• Industrial equipment demand in the semiconductor segment expected to remain weak through Q4; recovery anticipated next fiscal year.

• Network business expected to maintain strong performance domestically and internationally.

• Full-year FY2024 earnings and dividend forecast unchanged; annual dividend estimated at ¥70 per share (post-split basis).

• Full-year FY2025 forecast: net sales ¥1,040 billion (+1.1% YoY), operating income ¥44.5 billion (+30.2% YoY), net income attributable to owners ¥30 billion (+37.6% YoY), and EPS ¥166.65 (post-split).

• Management notes potential for material deviation from forecasts due to external factors.