Nippon Light Metal Holdings Company (5703) Q2 2025 earnings summary

Executive summary

• Net sales for the semi-annual period rose 4.3% year-over-year to 261.1 billion yen, with operating profit up 50.2% to 8.5 billion yen and profit attributable to owners of parent more than doubling to 4.8 billion yen.

• Ordinary profit for the semi-annual period reached 7.3 billion yen, up 8.9% year-over-year.

• Growth was driven by recovery in semiconductor-related products, strong truck body business, and improved aluminum ingot market conditions, despite sluggish automotive sector sales and construction delays.

• Full-year forecast remains unchanged at 20 billion yen in ordinary profit, with net sales projected at 560.0 billion yen and profit attributable to owners of parent at 13.0 billion yen.

• Management integration between Toyo Aluminium K.K. and UACJ Foil Corporation was cancelled, with minimal impact expected on consolidated results.

Financial highlights

• Gross profit increased to 44.7 billion yen from 40.4 billion yen year-over-year.

• Net sales for the semi-annual period rose by 10.6 billion yen (+4.3%) compared to the previous year.

• Net profit per share (basic) was 77.59 yen, up from 34.62 yen in the prior year.

• Full-year operating profit forecast is 21.0 billion yen (+15.5% year-over-year), with dividends per share expected to rise from 50 yen to 70 yen.

• Total assets increased to 546.9 billion yen, and net assets to 241.2 billion yen, with an equity ratio of 41.1%.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2025: net sales 560.0 billion yen (+6.9%), operating profit 21.0 billion yen (+15.5%), profit attributable to owners of parent 13.0 billion yen (+30.8%), EPS 209.88 yen.

• Recovery in semiconductor-related demand and truck body business is expected to continue.

• Forecasts incorporate uncertainties in the automobile sector, raw material price fluctuations, and overseas market trends.

• No change in full-year forecasts or dividend guidance from previous announcements.