Nisshinbo (3105) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY2025 rose 6.1% year-over-year to ¥254.7 billion, driven by Wireless and Communications and Real Estate, despite declines in Micro Devices and Textiles.

• Operating income surged 174.2% year-over-year to ¥18.4 billion, with significant contributions from Wireless and Communications and Real Estate.

• Net income attributable to owners increased 28.7% year-over-year to ¥11.5 billion.

• Growth in Wireless and Communications and Real Estate offset declines in Micro Devices.

Financial highlights

• Gross profit increased to ¥64.7 billion from ¥52.2 billion year-over-year.

• Ordinary income rose 71.5% year-over-year to ¥19.0 billion.

• Extraordinary losses included ¥1 billion in restructuring costs and ¥4.2 billion in impairment losses.

• Basic earnings per share was ¥73.53, up from ¥56.87 year-over-year.

• Net cash provided by operating activities was ¥59.7 billion, up from ¥23.9 billion year-over-year.

Outlook and guidance

• Full-year revenue, operating, and ordinary profit forecasts remain unchanged, but net income guidance was revised down by 39.9% due to additional extraordinary losses expected in H2.

• Full-year net sales forecast at ¥506.0 billion, up 2.3% year-over-year.

• Operating profit forecast at ¥19.7 billion, up 18.8% year-over-year.

• Extraordinary losses from restructuring and impairment are expected to impact net income.

• Segment performance varies, with Marine Systems and Solutions steady, but Mobility and Micro Devices facing headwinds.