ROHM (6963) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 were ¥118.2 billion, down 1.6% year-over-year but up 5.0% sequentially, mainly due to lower industrial equipment sales despite growth in automotive SiC power devices.

• Operating income dropped 92.8% year-over-year to ¥1.2 billion, with a margin of 1.1%.

• Net income fell 82.8% year-over-year to ¥3.4 billion; EBITDA decreased 35.6% to ¥21.0 billion.

• Sales exceeded internal plans by 10%, aided by a weaker yen, but profit upside was limited by inventory cost impacts.

• Ordinary profit decreased 67.0% to ¥9.3 billion.

Financial highlights

• Operating income decreased by ¥16.4 billion year-over-year, mainly due to higher fixed costs, depreciation, and R&D expenses.

• Gross profit margin declined as cost of sales increased 13.1% and SG&A expenses rose 17.6% year-over-year.

• Net income per share was ¥8.97, down from ¥51.28 in the prior year.

• Comprehensive income for Q1 was ¥32.4 billion, a 36.1% decrease year-over-year.

• Cash and cash equivalents at quarter-end were ¥241.2 billion, up ¥13.1 billion from the previous year-end.

Outlook and guidance

• FY2025 full-year net sales forecast is ¥480.0 billion (+2.6% year-over-year), with operating profit projected at ¥14.0 billion (-67.7%).

• Profit attributable to owners of parent is forecast at ¥14.0 billion (-74.1%), with EPS of ¥36.27.

• SiC business annual sales are projected at ¥60.0 billion.

• Management notes strong uncertainty for 2Q and beyond, with no clear signs of market recovery.

• Earnings forecasts will be revised as needed based on market trends.