Oki Electric Industry (6703) Q3 2025 earnings summary

Executive summary

• Net sales for the first nine months rose 7.1% year-over-year to ¥307.0 billion, driven by large projects and robust segment performance.

• Operating income increased 30.6% year-over-year to ¥7.6 billion, with strong contributions from Enterprise and Public Solutions.

• Ordinary income grew 17.5% to ¥5.6 billion, but profit attributable to owners of parent remained flat at ¥2.0 billion due to higher tax expenses.

• Comprehensive income turned negative at ¥(180) million, mainly from valuation losses on securities.

• Progress is on track to achieve annual performance targets, with segment forecasts revised to reflect current trends.

Financial highlights

• Gross profit for the nine months was ¥77.9 billion, up from ¥67.6 billion year-over-year.

• Basic earnings per share was ¥22.79, slightly down from ¥23.08 a year earlier.

• Shareholders' equity ratio stood at 32.7% as of December 2024.

• Free cash flow improved to negative ¥6.7 billion from negative ¥11.8 billion year-over-year.

• Total assets at period end: ¥422.8 billion, down ¥0.6 billion from March 2024.

Outlook and guidance

• Full-year consolidated net sales forecast revised to ¥453.0 billion, down ¥7.0 billion from previous guidance.

• Operating income forecast remains unchanged at ¥16.0 billion.

• Profit attributable to owners of parent is forecast at ¥9.5 billion, a 63% decrease year-over-year.

• Dividend per share forecast maintained at ¥30.

• Exchange rate assumptions: USD/JPY 152.9, EUR/JPY 163.9.