Payton Planar Magnetics (PAY) Q2 2025 earnings summary

Executive summary

• Six-month revenues ended June 30, 2025, were $23.0M, down from $28.5M year-over-year, mainly due to global economic slowdown and delivery pushouts.

• Net profit for the period was $6.0M, compared to $7.6M in the same period last year.

• Gross margin remained strong at 45% despite lower sales, reflecting effective cost management and product mix.

• A $5.3M dividend was paid in June 2025 for the 2024 financial year.

• Acquisition agreements for SI Manufacturing, Inc. and related real estate in the US were signed, pending regulatory approvals.

Financial highlights

• Cash, short-term deposits, and marketable securities totaled $58.0M at June 30, 2025, stable from year-end 2024.

• Operating profit for the six months was $5.5M, down from $8.0M year-over-year.

• Net finance income increased to $1.9M from $1.0M, mainly due to exchange rate differences and derivatives.

• Order backlog as of June 30, 2025, was $25.7M, slightly up from $25.2M at year-end 2024.

• Cash flows from operating activities were $5.5M, slightly down from $5.9M in the prior year period.

Outlook and guidance

• Management expects continued impact from global slowdown, high interest rates, and elevated raw material and labor costs in the coming months.

• Most of the order backlog as of June 30, 2025, is expected to be supplied within four quarters.

• The ongoing war in Israel has not materially affected operations, but future impacts remain uncertain.