Noritz (5943) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 FY2025 reached ¥142.6bn, up 1.0% year-over-year, with operating income at ¥0.8bn, reversing a prior-year loss; ordinary income surged 327.8% to ¥1.7bn, but net income attributable to shareholders dropped 71.4% to ¥0.6bn.

• Domestic sales increased, driven by eco-friendly products and improved profitability, while overseas sales declined due to weak market conditions in China, but profits rose thanks to recovery in North America and strong performance in Australia.

• The company is in the second year of its Medium-Term Management Plan, focusing on reforming its domestic business and diversifying overseas markets.

Financial highlights

• Domestic net sales for Q3 FY2025 were ¥94.6bn, up 4.5% year-over-year; overseas net sales were ¥47.9bn, down 5.2% year-over-year.

• Operating income improved to ¥0.8bn from a loss of ¥0.4bn year-over-year; domestic business narrowed its loss to ¥0.2bn, and overseas business increased profit to ¥1.0bn.

• Operating margin for 2025 3Q was 0.6%, up from a negative margin in the prior year.

• Net cash provided by operating activities improved significantly in 2024, with cash and cash equivalents at ¥22.2bn as of 2025 3Q.

• Net income attributable to shareholders for Q3 FY2025 was ¥0.6bn, down 71.4% year-over-year.

Outlook and guidance

• FY2025 targets: net sales ¥205bn (+1.4% YoY), operating income ¥3.0bn (+25.3% YoY), net income attributable to shareholders ¥2.4bn (down from ¥4.4bn in FY2024), ROE 1.9%.

• FY2026 targets: net sales ¥210bn, operating income ¥4.5bn, ROE over 6.0%.

• No changes have been made to the previously announced consolidated operating results forecast for the fiscal year ending December 31, 2025.