Nippon Electric Glass (5214) Q2 2025 earnings summary

Executive summary

• Net sales for 2Q FY2025 were ¥153.7–153.8 billion, nearly flat or down 0.6% year-over-year, as strong electronics demand offset weaker displays.

• Operating profit surged to ¥16.6–16.7 billion, up 479.6% year-over-year, driven by productivity gains and higher sales prices.

• Ordinary profit rose 38.2% year-over-year to ¥14.2 billion, despite foreign exchange losses.

• Profit attributable to owners fell 66.6% to ¥10.0–10.1 billion due to the absence of prior-year asset sales and new restructuring costs.

• Dividends maintained or raised to ¥70 per share interim, with a full-year forecast of ¥145 per share.

Financial highlights

• Operating margin improved to 10.8% for 2Q FY2025 from 1.9% a year earlier.

• Gross profit rose to ¥38.98 billion from ¥27.85 billion year-over-year.

• Extraordinary income dropped sharply due to lack of asset sales, impacting net profit.

• Cash flow from operations was ¥18.6–33.0 billion for 2Q; free cash flow at ¥18.6 billion.

• Equity ratio stood at 69.8% as of June 30, 2025.

Outlook and guidance

• Full-year FY2025 net sales forecast at ¥310.0 billion, up 3.6% from FY2024.

• Operating profit projected at ¥27.0 billion, a 341.1% increase year-over-year.

• Profit attributable to owners expected to reach ¥17.0 billion, up 40.6%.

• Dividend forecast set at ¥145 per share, with interim and year-end payments.

• Assumptions: 1 USD = 145 JPY, 1 EUR = 160 JPY; indirect impact of US tariffs not included.