Rion (6823) Q2 2025 earnings summary

Executive summary

• H1 FY3/25 revenue, operating income and ordinary income reached record highs, led by strong particle measurement instrument sales; interim net income fell as costs rose for rebuilding an employee welfare facility.

• Full-year revenue and profit are forecast to set records, with particle measurement instruments expected to offset weaker-than-planned hearing aid and environmental equipment results.

Financial highlights

• H1 revenue rose 7.8% YoY to ¥13,040 million; gross profit increased 6.2% to ¥6,740 million and SG&A rose 7.0% to ¥4,978 million.

• Operating income increased 4.0% to ¥1,761 million and ordinary income rose 2.6% to ¥1,802 million; operating margin was 13.5% versus 14.0%.

• Interim net income declined 4.8% to ¥1,197 million; EPS was ¥97.27 versus ¥102.25, and comprehensive income was ¥1,256 million, down 1.2%.

• Total assets were ¥38,188 million at September 2024, with liabilities of ¥8,089 million and net assets of ¥30,099 million; equity ratio was 78.8%.

Outlook and guidance

• FY3/25 forecast: revenue ¥26,900 million, operating income ¥3,700 million, ordinary income ¥3,700 million and net income ¥2,700 million; forecast EPS is ¥219.22, with no revisions to prior guidance.

• Medium-term forecasts: revenue of ¥28,000 million and operating income of ¥4,000 million in FY3/26; revenue of ¥29,400 million and operating income of ¥4,400 million in FY3/27.

• Medium-term goals include consolidated revenue of at least ¥30 billion, operating margin of at least 15% and ROE of at least 10%.

• Management expects revenue and profit growth across all segments while continuing particle measurement instrument capacity investment; related costs are expected to persist.