Riken Technos (4220) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 reached ¥63,391 million, up 3.2% year-over-year, with all profit metrics hitting record highs and operating profit up 31.9% to ¥4,776 million.

• Profit attributable to owners of parent rose 4.3% to ¥2,614 million.

• Overseas sales ratio exceeded 50%, reflecting strong international performance.

• Comprehensive income for the period was ¥5,568 million, down from ¥6,182 million in the prior year.

Financial highlights

• Gross profit increased 16.2% year-over-year to ¥11,712 million.

• Ordinary profit grew 12.0% to ¥4,700 million.

• Basic EPS was ¥47.92, up 20.9% year-over-year.

• Free cash flow improved significantly to ¥3,700 million, mainly from higher operating cash flow.

• Total assets as of September 30, 2024, were ¥117,336 million, with net assets at ¥75,839 million and an equity-to-asset ratio of 55.7%.

Outlook and guidance

• Full-year net sales forecast maintained at ¥130,000 million, up 3.4% from the previous year.

• Operating profit forecast revised upward to ¥10,000 million, a 14.0% increase over the initial forecast.

• Ordinary profit forecast at ¥10,000 million, up 4.8%.

• Profit attributable to owners of parent projected at ¥5,600 million, down 18.6% year-over-year.

• Dividend per share forecast raised to ¥37, with a payout ratio of 35.4%.