Optorun (6235) Q1 2025 earnings summary

Executive summary

• Q1 FY12/2025 net sales were ¥7.9 billion, down 30% year-over-year, with operating profit down 81% and net profit down 75% due to prior weak orders and higher R&D expenses.

• Orders received in Q1 FY12/2025 rose 12% sequentially to ¥8.6 billion, led by strong EV/connected car and AI smartphone demand.

• Comprehensive income turned negative at ¥(1,391) million, compared to ¥4,784 million in Q1 2024.

• Shareholder returns included a tender offer buyback of 2.5 million shares and a planned annual dividend of ¥54 per share, targeting a total payout ratio of ~100%.

Financial highlights

• Q1 revenue: ¥7.9 billion (down 30% YoY); operating profit: ¥755 million (down 81% YoY); net profit: ¥809 million (down 75% YoY).

• Gross profit for Q1 2025 was ¥2,612 million, down from ¥5,380 million in Q1 2024.

• Ordinary profit declined 82.9% year-over-year to ¥740 million.

• AI smartphone sales (high-margin ALD devices) dropped 81% YoY to ¥1.4 billion.

• Q1 orders: ¥8.6 billion (+12% QoQ); order backlog: ¥23.95 billion.

Outlook and guidance

• Q2 orders expected to be on par or higher than Q1, driven by new business areas.

• Full-year 2025 net sales forecast is ¥38 billion (+17.3% YoY), operating profit ¥7.6 billion (+15.7% YoY), and net profit ¥6.4 billion (+0.8% YoY).

• Annual dividend forecast raised to ¥54.00 per share, up from ¥52.00 in 2024.

• FY2027 targets: revenue ¥50 billion, operating profit ¥10.8 billion (margin 21.6%), net income ¥8.4 billion, ROE 12%.

• Long-term vision: ¥80 billion sales, 25% operating margin, 50% non-optical segment by FY2030.