Nippon Light Metal Holdings Company (5703) Q1 2025 earnings summary

Executive summary

• Net sales rose 5.0% year-over-year to ¥128.6B for Q1 FY2025, driven by strong U.S. secondary alloy ingot sales, robust truck body demand, and favorable aluminum market conditions.

• Operating profit more than doubled to ¥4.2B (+111.9% YoY), ordinary profit increased 54.9% to ¥4.6B, and profit attributable to owners of parent surged 81.8% to ¥2.1B.

• Comprehensive income reached ¥5.6B, up from ¥3.5B in the prior year period.

• Truck body business and aluminum ingot market contributed to profit growth, supported by sales price revisions.

Financial highlights

• Q1 FY2025 net sales were ¥128.6B (+5.0% YoY), operating profit ¥4.2B (+111.9% YoY), ordinary profit ¥4.6B (+54.9% YoY), and profit attributable to owners of parent ¥2.1B (+81.8% YoY).

• Gross profit increased to ¥22.2B from ¥19.0B YoY.

• Net profit per share (basic) rose to ¥34.66 from ¥19.07 YoY.

• Total assets grew to ¥546.0B, net assets to ¥241.5B, and equity ratio improved to 41.1%.

• H1 FY2025 forecasts revised upward: operating profit expected at ¥8.0B (+45.5% vs. previous forecast), ordinary profit at ¥8.0B (+60.0%), and profit attributable to owners of parent at ¥5.0B (+100.0%).

Outlook and guidance

• Full-year FY2025 forecasts unchanged: net sales ¥560.0B (+6.9% YoY), operating profit ¥21.0B (+15.5%), ordinary profit ¥20.0B (+5.1%), profit attributable to owners of parent ¥13.0B (+43.9%).

• Interim and year-end dividends forecast at ¥20 and ¥50 per share, respectively, unchanged from previous guidance.

• H1 FY2025 segment outlook expects continued recovery in aluminum sheet, extrusions, and truck bodies, with solid aluminum ingot and chemicals sales.

• Uncertainties persist in the automobile-related sector due to the outlook in China and ongoing production cuts in Japan.

• Full-year forecasts remain unchanged due to ongoing uncertainties in the automobile sector despite signs of recovery in semiconductor-related products.