Nippon Gear (6356) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was ¥2,110 million, a 2.1% decrease year-over-year.

• Operating profit rose 17.5% year-over-year to ¥523 million, and net profit increased 23.9% to ¥369 million.

• Orders received fell 13.0% year-over-year, but order backlog rose 7.6% from the previous fiscal year-end.

Financial highlights

• Gross profit for Q1 FY2025 was ¥941 million, with a gross margin improvement due to lower cost of sales.

• SG&A expenses dropped 22.3% year-over-year, supporting higher operating margins.

• EPS for Q1 FY2025 was ¥25.96, up from ¥20.95 in Q1 FY2024.

• Total assets at quarter-end were ¥14,496 million, with net assets of ¥11,475 million.

Outlook and guidance

• No changes to previously announced full-year guidance: FY2025 revenue forecast at ¥9,300 million (+3.2% YoY), operating profit at ¥1,640 million (+22.9% YoY), and net profit at ¥1,150 million (−8.4% YoY).

• Interim and year-end dividends are forecast at ¥4.00 each, unchanged from prior guidance.