Okuma (6103) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 FY2024 were ¥1,489.7 billion, down 11.0% year-over-year; operating income was ¥101.3 billion, a 44.4% decrease; net income attributable to owners was ¥75.0 billion, down 42.7%.

• Orders received for Q3 FY2024 totaled ¥1,520 billion, a 1.6% decrease year-over-year, with backlog orders down 8.2%.

• Overseas sales accounted for 70.1% of consolidated net sales, with resilience in China and Asia/Pacific.

• Profitability was pressured by weak demand from medium- and small-sized businesses and persistent high material costs.

Financial highlights

• Operating income margin for Q3 FY2024 was 6.8%, down from 10.9% in Q3 FY2023.

• Ordinary income for Q3 FY2024 was ¥113.0 billion, a 38.6% decrease year-over-year.

• Net cash at the end of December 2024 was ¥42.1 billion; capital adequacy ratio stood at 76.7%.

• Total assets were ¥296,678 million, down ¥1,096 million from March 31, 2024.

Outlook and guidance

• FY2024 sales forecast is ¥2,100 billion, a 7.9% decrease from FY2023; operating income forecast is ¥175 billion, down 31.0%; net income forecast is ¥125 billion, a 35.5% decrease.

• No changes to previously announced financial or dividend forecasts; year-end dividend forecast is ¥100 per share post-split.

• Management expects continued weak demand for machine tools but sees opportunities in automation and decarbonization.