Niterra (5334) Q2 2025 earnings summary

Executive summary

• Achieved record-high sales revenue and operating profit in FY2024 H1, driven by price increases, strong aftermarket (AM) sales, and yen depreciation.

• Automotive-related business saw revenue growth despite lower OEM volumes, with strong AM sales.

• Ceramic business revenue increased as the semiconductor market bottomed out; medical business also saw revenue growth.

• Profit attributable to owners of the parent reached ¥50.4 billion, up from ¥46.2 billion year-over-year.

• Comprehensive income declined to ¥37.7 billion from ¥72.2 billion year-over-year, mainly due to negative foreign currency translation effects.

Financial highlights

• FY2024 H1 revenue rose to ¥324.6B (+8% YoY); operating profit reached ¥72.3B (+27% YoY, margin 22.3%).

• Gross profit for the six months ended September 30, 2024 was ¥131.0 billion, up from ¥112.0 billion year-over-year.

• Earnings per share (basic) increased to ¥253.51 from ¥227.64 year-over-year.

• Net cash provided by operating activities rose to ¥72.6 billion from ¥53.9 billion year-over-year.

• Cash and cash equivalents at period end increased to ¥189.0 billion from ¥167.6 billion year-over-year.

Outlook and guidance

• FY2024 full-year revenue forecast revised up to ¥653.0B (+6% YoY); operating profit to ¥130.0B (+21% YoY, margin 19.9%).

• Profit attributable to owners of the parent projected at ¥95.0 billion, compared to ¥82.6 billion last year.

• Both revenue and profit expected to reach new record highs, supported by price increases, strong AM sales, and semiconductor market recovery.

• FOREX assumptions for H2: USD/JPY 145, EUR/JPY 155.

• Upward revision driven by stronger AM sales and a weaker yen.