MEITEC (9744) Q2 2025 earnings summary

Executive summary

• Consolidated net sales for the 2nd quarter rose 5.3% year-over-year to ¥65,837 million, driven by strong orders in the Engineering Solutions Business and increased engineer assignments and utilization rates.

• Operating profit increased 4.6% year-over-year to ¥9,020 million, while ordinary profit rose 4.9%.

• Profit attributable to owners of parent declined 3.7% year-over-year to ¥5,538 million due to a ¥620–621 million loss from suspending use of the former headquarters/training facility.

Financial highlights

• Gross profit for the period was ¥17,626 million, up from ¥16,880 million a year earlier.

• Cost of sales increased 5.6% year-over-year to ¥48,210 million, mainly due to higher labor expenses.

• Operating profit margin slightly decreased to 13.7% (−0.1pp YoY); profit margin at 8.4% (−0.8pp YoY).

• Basic earnings per share for the six months was ¥71.73, compared to ¥73.33 in the prior year.

• Total assets as of September 30, 2024, were ¥87,964 million, down from ¥90,761 million at March 31, 2024.

Outlook and guidance

• Full-year forecast revised upward for net sales and operating profit, but profit forecast lowered due to 1H results and recruitment challenges.

• FY2025 consolidated net sales forecast: ¥133,300 million (+5.0% YoY); operating profit: ¥18,200 million (+3.1% YoY); profit attributable to owners of parent: ¥11,900 million (−3.6% YoY).

• Annual dividend forecast revised to ¥185 (including ¥30 commemorative), up ¥71 YoY but down ¥3 from initial forecast; year-end dividend forecast revised to ¥97.00 per share, including a ¥30.00 commemorative dividend.