Noda (7879) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of FY2025 was ¥31,995 million, down 2.9% year-over-year, with operating income dropping 95.1% to ¥32 million and a net loss attributable to shareholders of ¥367 million, a significant improvement from the previous year's ¥1,645 million loss.

• The company faced a challenging environment due to weak housing demand, rising costs, price competition, and regulatory changes, despite efforts to expand sales and improve efficiency.

• Segment performance was mixed: wood-based building materials saw growth, while the plywood segment declined.

Financial highlights

• Operating income dropped 95.1% to ¥32 million; ordinary income turned negative at -¥100 million.

• Net loss attributable to shareholders was ¥367 million, improving from ¥1,645 million loss a year earlier.

• Gross margin and profitability ratios declined sharply as cost increases outpaced sales price adjustments.

• Cash and cash equivalents at period-end were ¥21,174 million, down ¥565 million from the previous year-end.

Outlook and guidance

• Full-year guidance is unchanged: revenue of ¥67,900 million (+1.3% YoY), operating income of ¥600 million, and net income of ¥400 million (+34.9% YoY).

• The company expects gradual recovery in housing starts and is focusing on expanding into rental and renovation markets.

• Cost controls, price revisions, and productivity improvements are key priorities for the second half.

• No revision to previously announced guidance; management will promptly disclose any changes if necessary.