MINEBEA MITSUMI (6479) Q1 2025 earnings summary

Executive summary

• Consolidated net sales for Q1 FY2025 rose 21.6% year-over-year to JPY 355.454 billion, setting a first-quarter record, with operating income tripling year-over-year to JPY 20.025 billion and profit attributable to owners up 3.4 times to JPY 13.936 billion.

• Market environment has mostly recovered to pre-COVID-19 levels, with strong performance in Precision Technologies and Motor, Lighting & Sensing segments.

• Acquisition of Minebea Power Semiconductor Device Inc. contributed to results, with segment reclassifications reflecting organizational changes.

• Upward revision to full-year forecast: net sales now targeted at JPY 1,560 billion and operating income at JPY 103 billion.

Financial highlights

• Q1 FY2025 net sales: JPY 355.454 billion (+21.6% YoY, +1.9% QoQ); operating income: JPY 20.025 billion (x3.0 YoY, -1.6% QoQ); profit for the period: JPY 13.936 billion (x3.4 YoY, -24.0% QoQ).

• Basic EPS for Q1: JPY 34.5.

• Gross profit increased to JPY 63.354 billion from JPY 44.494 billion year-over-year.

• Inventory at quarter-end was JPY 359.6 billion, up JPY 64.7 billion from three months prior, mainly due to strategic buildup and FX effects.

• Net interest-bearing debt rose to JPY 251.2 billion, up JPY 42.6 billion from the previous fiscal year-end.

Outlook and guidance

• Full-year forecast revised upward, reflecting Q1 outperformance; net sales targeted at JPY 1,560 billion (+11.3% YoY), operating income at JPY 103 billion (+40.1% YoY), and profit for the period at JPY 73 billion (+35.1% YoY).

• Segment net sales growth expected: PT +20.6%, MLS +12.3%, SE +12.2%, AS +2.5%.

• Exchange rate assumption for the year is 140 yen/USD.

• Interim and year-end dividends for FY2025 to be decided later, targeting a payout ratio of around 20%.

• Expectation of continued strong demand in data centers and automotive applications.