NTN (6472) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2024, rose 1.0% year-on-year to ¥413,947 million, with operating income up 47.1% to ¥9,949 million, but ordinary income fell 28.7% to ¥3,483 million due to foreign exchange losses.

• Loss attributable to owners of parent was ¥2,125 million, reversing a profit of ¥4,124 million in the prior year, mainly due to tax effects.

• Comprehensive income was negative ¥8,462 million, compared to positive ¥29,476 million a year earlier, reflecting significant translation adjustment losses.

• The company is advancing its "DRIVE NTN100" management plan, focusing on business structure reforms and production restructuring.

Financial highlights

• Gross profit increased to ¥69,888 million (from ¥64,469 million), while operating margin improved to 2.4% from 1.7% year-on-year.

• Net cash provided by operating activities was ¥15,339 million, down 57.8% year-on-year; cash and cash equivalents at period-end rose 7.9% to ¥137,368 million.

• Total assets decreased 2.5% to ¥887,852 million, and net assets fell 4.2% to ¥269,077 million compared to March 31, 2024.

• R&D expenditures for the period were ¥9,666 million, representing 2.3% of net sales.

Outlook and guidance

• Full-year net sales forecast is ¥815,000 million (up 2.5% year-on-year), with operating income projected at ¥22,000 million (down 21.8%), and ordinary income at ¥9,000 million (down 55.0%).

• Net loss attributable to owners of parent is forecast at ¥16,000 million, with EPS of ¥(30.18).

• Dividend forecast revised to ¥11.00 per share for the year, up from ¥10.00 in the previous year.