Mitsubishi Research Institute (3636) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended March 31, 2025, were ¥65.44 billion, down 1.6% YoY, with operating profit at ¥6.82 billion (down 20.7%) and profit attributable to owners of parent at ¥4.88 billion (down 21.4%).

• Declines were attributed to slow orders in 1Q, delays in TTC orders, and unprofitable ITS projects, despite growth in general industries and increased order backlogs.

• Orders received and backlog increased YoY, but results fell short of internal plans, prompting a downward revision of the full-year earnings forecast.

• The company is midway through its Medium-Term Management Plan 2026, focusing on DX, GX, and HX business growth and profitability improvements.

Financial highlights

• Net sales for 1H FY2025 were ¥65.44 billion, down 1.6% YoY; gross profit fell 5.1% to ¥16.44 billion.

• Operating profit dropped 20.7% YoY to ¥6.82 billion; ordinary profit decreased 18.2% to ¥7.64 billion.

• Profit attributable to owners of parent declined 21.4% YoY to ¥4.88 billion; basic EPS was ¥310.07, down ¥81.10 YoY.

• Comprehensive income fell 24.9% YoY to ¥5.41 billion.

• Total assets increased to ¥128.27 billion, up 7.1% from the previous fiscal year-end; net assets rose to ¥80.41 billion, up 5.3%.

Outlook and guidance

• Full-year net sales forecast revised to ¥122.0 billion, up 5.8% YoY but down from initial forecast of ¥128.0 billion.

• Operating profit forecast revised to ¥6.2 billion (down 25.3% from prior forecast); ordinary profit forecast at ¥7.5 billion (down 7.9% YoY); profit attributable to owners forecast at ¥4.1 billion (down 18.1% YoY).

• Basic EPS for the full year forecast at ¥260.37.

• Annual dividend forecast remains unchanged at ¥160 per share.