Nitto Boseki (3110) Q2 2025 earnings summary

Executive summary

• Net sales for 1H FY2024 rose 24.1% year-over-year to ¥53.1B, with operating profit up 135.6% to ¥7.3B and net profit up 53.9% to ¥5.4B, driven by strong Special Glass and stable medical reagent demand.

• Net sales and operating profit met or exceeded the August 2024 outlook.

• Strong sales of high-value-added products and robust demand in Electronic Materials and Medical segments fueled growth.

• Launched a new Medium-Term Management Plan (FY2024-2027) to pursue Big VISION 2030, focusing on environment, digital society, and health.

Financial highlights

• 1H FY2024 net sales: ¥53.1B, up ¥10.3B year-over-year; operating profit: ¥7.3B, up ¥4.2B; net profit: ¥5.4B, up ¥1.9B.

• Gross profit increased to ¥19.2B from ¥14.1B; operating margin and ROS improved to 13.8% from 7.3% year-over-year.

• EBITDA: ¥11.2B, EBITDA margin 21.1%, up from 15.5% year-over-year.

• Basic EPS for the period was ¥148.63, up from ¥96.59 a year earlier.

• Equity-to-asset ratio improved to 58.8% from 55.7%; net cash from operating activities surged to ¥10.4B.

Outlook and guidance

• FY2024 full-year net sales forecast: ¥109.0B, operating profit: ¥15.0B, net profit: ¥10.5B, and EPS: ¥288.40.

• Full-year dividend forecast revised upward to ¥87.0 per share, with interim dividend at ¥27.5.