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, supported by improved cost of sales ratio, higher sales volume, and favorable foreign exchange rates.

• Profit attributable to owners of the parent increased 83.5% year-over-year to ¥38.2 billion, with EPS at ¥141.99.

• Cost reductions and improved manufacturing efficiency contributed to higher profitability.

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

Financial highlights

• Domestic revenue grew 3.4% year-over-year to ¥63.5 billion; overseas revenue increased 4.8% to ¥322.9 billion.

• Gross profit increased to ¥131.9 billion from ¥111.8 billion year-over-year.

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

• Profit before income taxes rose 70.9% to ¥51.3 billion; basic EPS was ¥141.99, up from ¥77.11.

• Cash and cash equivalents increased to ¥229.9 billion as of September 30, 2024.

Outlook and guidance

• Full-year FYE2025 revenue forecast is ¥730.0 billion, down 1.5% year-over-year; operating profit forecast is ¥85.0 billion, up 28.5%.

• Profit attributable to owners of the parent projected at ¥61.0 billion, up 39.6%; EPS forecast at ¥226.74.

• Capital expenditures expected to rise to ¥27.0 billion; R&D costs to ¥15.5 billion.

• Production volume forecast to increase 22.4% year-over-year to 28.60 million units.

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