RENOVA (9519) Q1 2025 earnings summary

Executive summary

• Revenue rose 58% year-over-year to ¥15,157 million, driven by new biomass plant contributions and full-quarter operations from Sendai Gamo and Ishinomaki Hibarino Biomass.

• EBITDA was ¥5,252 million, nearly flat year-over-year, while operating profit dropped 80.9% to ¥571 million due to higher depreciation and absence of prior year’s one-time profit.

• Net profit attributable to owners fell 75.5% to ¥331 million; EPS was ¥3.73, down from ¥17.21.

• Total comprehensive income surged 86.2% year-over-year to ¥25,145 million, driven by strong other comprehensive income.

• Repair work at Tokushima-Tsuda Biomass was completed in July 2024, with permanent countermeasures scheduled for late September.

Financial highlights

• 1Q FY3/2025 revenue: ¥15,157 million, up 58% year-over-year; EBITDA: ¥5,252 million, nearly flat due to absence of prior year’s one-time profit from liquidated damages.

• Operating profit fell to ¥571 million from ¥2,988 million year-over-year, mainly due to higher depreciation and amortization.

• Net profit attributable to owners: ¥331 million, down from ¥1,354 million year-over-year.

• Equity ratio improved to 19.9% from 14.6% at prior year-end, supported by new shares issued via third-party allotment.

• Cash and cash equivalents more than doubled to ¥32,246 million at quarter-end.

Outlook and guidance

• Full-year FY3/2025 revenue forecast: ¥71,800 million (+60.5% year-over-year); EBITDA: ¥20,800 million (+24.5%).

• Operating profit forecast: ¥1,000 million (down 80.1% year-over-year) due to higher fuel costs and extended repair work at Tokushima-Tsuda Biomass.

• Net profit forecast: ¥5,900 million; EPS: ¥65.31.

• Full-year guidance unchanged; expects full-year contributions from new biomass plants and gains from step acquisitions.

• No dividend is planned for the fiscal year.