Okano Valve Mfg (6492) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was ¥1,442 million, down 8.2% year-over-year due to lower sales in the valve manufacturing segment despite efforts in domestic and overseas markets.

• Operating profit fell 35.5% to ¥173 million, and net profit attributable to shareholders dropped 43.2% to ¥137 million compared to the same quarter last year.

• The business environment remains uncertain due to financial market volatility and US policy concerns, but domestic economic recovery continues.

• The company’s main business, valve manufacturing and maintenance for power plants, is supported by ongoing nuclear power initiatives and government policy favoring nuclear energy.

Financial highlights

• Q1 revenue: ¥1,442 million (down 8.2% YoY); operating profit: ¥173 million (down 35.5% YoY); ordinary profit: ¥206 million (down 36.7% YoY); net profit: ¥137 million (down 43.2% YoY).

• EPS for Q1: ¥85.79, compared to ¥151.31 in the prior year.

• Gross margin for Q1: ¥498 million on sales of ¥1,442 million.

• Comprehensive income for Q1: ¥146 million, down from ¥261 million YoY.

Outlook and guidance

• No change to previously announced forecasts: H1 revenue expected at ¥3,585 million (down 4.9% YoY), full-year revenue forecast at ¥6,402 million.

• H1 operating profit forecast: ¥278 million (down 63.5% YoY); full-year operating profit: ¥528 million.

• The fiscal year was shortened to 10 months due to a change in fiscal year-end.