Nippon Gear (6356) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended September 30, 2024, increased 1.9% year-over-year to ¥4,241 million, with operating profit up 10.9% and net profit up 14.5% year-over-year.

• Orders received decreased 5.9% year-over-year, but order backlog rose 15.7% from the previous fiscal year-end.

• The economic environment showed moderate recovery, but uncertainties remain due to global instability and high raw material and energy prices.

Financial highlights

• Operating profit was ¥890 million (up 10.9% year-over-year), ordinary profit ¥919 million (up 11.8%), and net profit ¥625 million (up 14.5%).

• Gross profit margin improved as selling, general, and administrative expenses decreased 13.7% year-over-year due to favorable actuarial differences in pension costs.

• Cash and cash equivalents at period-end increased by ¥425 million to ¥4,900 million.

Outlook and guidance

• Full-year revenue is forecast at ¥9,300 million (down 3.2% year-over-year), with operating profit of ¥1,640 million (up 22.9%) and net profit of ¥1,150 million (up 25.3%).

• No change to previously announced full-year guidance due to difficulty in reasonably estimating profit; updates will be provided when possible.