Makita (6586) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of FYE2025 rose 4.5% year-over-year to ¥386.4 billion, driven by proactive product launches and yen depreciation, with overseas sales comprising 83.6% of total revenue.

• Operating profit surged 61.9% year-over-year to ¥51.4 billion, with profit attributable to owners up 83.5% to ¥38.2 billion.

• EPS increased to ¥141.99 from ¥77.11 in the prior year period.

• Cost reductions, improved manufacturing efficiency, and favorable foreign exchange rates contributed to higher profitability.

• Demand remained sluggish in housing and construction, but XGT cordless products underpinned sales, especially in Japan and Europe.

Financial highlights

• Gross profit increased to ¥131,917 million from ¥111,800 million year-over-year.

• Operating profit margin improved to 13.3% from 8.6% year-over-year.

• Profit before income taxes rose 70.9% to ¥51,323 million; basic EPS was ¥141.99, up from ¥77.11.

• Financial income (expenses) improved by ¥1.7 billion year-over-year.

• Cash and cash equivalents increased to ¥229,863 million as of September 30, 2024.

Outlook and guidance

• Full-year FYE2025 revenue forecast is ¥730.0 billion, down 1.5% year-over-year, with operating profit projected to rise 28.5% to ¥85.0 billion and EPS expected at ¥226.74.

• Profit attributable to owners of the parent forecast at ¥61,000 million, up 39.6% year-over-year.

• Overseas revenue ratio forecasted at 82.9%.

• Assumed exchange rates: 149 yen/USD, 161 yen/EUR, 20.8 yen/RMB for FY2025.

• Dividend policy targets a total return ratio of at least 35%, with a minimum annual dividend of ¥20 per share.