Musashi Seimitsu Industry (7220) Q3 2025 earnings summary

Executive summary

• FY2024 3rd quarter (9 months) net sales were ¥2,566 billion, down 0.3% year-over-year; operating profit rose 4.6% to ¥120 billion, and net income fell 19% to ¥51 billion.

• EBITDA remained flat at ¥263 billion; operating profit margin improved to 4.7% from 4.5% year-over-year.

• Sales by customer remained evenly split between Honda and other global customers; business mix shifted with 2W segment rising to 27% of sales.

• Americas and Asia sales increased, while Japan, China, and Europe declined; Americas now 30% of sales.

• Energy Solution business saw rapid demand growth for HSC devices for AI data centers, prompting organizational changes and new project launches.

Financial highlights

• Operating profit increased by ¥5 billion year-over-year, mainly from volume/improvement and FX, offset by one-time and other factors.

• Net income declined by ¥12 billion due to higher income tax and extraordinary losses.

• Balance sheet: total assets at ¥2,855 billion (down ¥48 billion from March 2023); net assets at ¥1,296 billion, equity ratio improved to 42.0%.

• Free cash flow for 9 months was ¥125 billion; cash and deposits increased to ¥307 billion.

• EPS for the period was ¥78.90, down from ¥97.66 in the prior year.

Outlook and guidance

• Full-year FY2024 forecast: net sales ¥3,350 billion (down 4.3% year-over-year), operating profit ¥185 billion (up 1.1%), net income ¥95 billion (up 20.3%).

• EBITDA forecast at ¥380 billion; dividend forecast raised to ¥50/share.

• Capex planned at ¥200 billion, depreciation at ¥195 billion.