NTN (6472) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue was ¥201.6B, down ¥9.3B year-over-year, with after-market sales up ¥1.8B to ¥34.4B.

• Net sales for the nine months ended December 31, 2024, were ¥615.5B, down 0.8% year-over-year, with operating income at ¥14.2B, down 7.7% year-over-year, and a net loss attributable to owners of parent of ¥8.3B.

• Operating income fell to ¥4.3B in Q3, a decrease of ¥4.4B year-over-year; operating margin dropped 2.0pt to 2.1%.

• Ordinary income declined 40.8% year-over-year to ¥5.8B, mainly due to foreign exchange losses and extraordinary items.

• After-market segment grew, but industrial and automotive demand declined, especially in Japan and China.

Financial highlights

• 9M FY2025 revenue: ¥615.5B (down ¥5.0B year-over-year); operating income: ¥14.2B (down ¥6.1B).

• Net income attributable to shareholders: ¥3.0B for 9M FY2025, down ¥6.1B year-over-year.

• Special/extraordinary losses of ¥5.0B in Q3, including ¥4.1B impairment and ¥2.1B restructuring costs.

• Free cash flow for 9M: ¥5.7B, sharply down from ¥40.1B year-over-year.

• Annual dividend forecast maintained at ¥11.0 per share.

Outlook and guidance

• Full-year FY2025 guidance unchanged: revenue ¥815.0B, operating income ¥22.0B, margin 2.7%.

• Full-year forecast projects a net loss attributable to owners of parent of ¥16.0B and ordinary income of ¥9.0B.

• Management expects continued impact from demand declines but maintains reform and cost control focus.

• No revision to the previously announced earnings forecast.