Okuma (6103) Q4 2025 earnings summary

Executive summary

• FY2024 sales declined 9.3% year-over-year to ¥2,068.2 billion, with operating income down 42.2% to ¥146.5 billion and net income down 50.5% to ¥95.9 billion.

• Profitability was impacted by a slow market recovery, with major corporations maintaining demand but medium- and small-sized businesses delaying investments.

• Orders increased 5.7% year-over-year, with machining centers showing strong growth, while lathes and grinders declined.

• The company advanced "Green-Smart Machines" and Monozukuri DX solutions globally, opening a new CS center in Kyushu to support semiconductor industries.

Financial highlights

• Operating income margin fell to 7.1% in FY2024 from 11.1% in FY2023.

• Gross profit margin decreased to 31.7% from 32.7% year-over-year.

• Net cash at year-end was ¥43.1 billion, with a capital adequacy ratio of 76.3%.

• Cash flow from operating activities rose to ¥17,802 million, while investing and financing cash flows were negative.

• Comprehensive income dropped 78.2% to ¥7,537 million.

Outlook and guidance

• FY2025 sales are forecast to rise 11.2% to ¥2,300 billion, with operating income up 50.2% to ¥220 billion and net income up 56.4% to ¥150 billion.

• Dividend per share is planned at ¥100.0 post-stock split.

• Management targets an operating income margin of 9.6%, ROE of 10% or higher, and gross profit margin of 34–35% for FY2025.

• Demand for machine tools is expected to remain firm in growth industries, but global uncertainties such as U.S. tariff policy, geopolitical risks, and exchange rate fluctuations persist.