ROHM (6963) Q2 2025 earnings summary

Executive summary

• H1 FY2024 net sales were ¥232,022 million, down 3.0% year over year; operating loss was ¥974 million versus prior-year profit of ¥29.8 billion.

• Profit attributable to owners of parent fell 94.5% to ¥2,068 million, while EBITDA decreased 35.8% to ¥39,344 million.

Financial highlights

• Cost of sales rose 10.2% and SG&A increased 14.6% to ¥57,668 million, pressuring margins amid lower sales and higher costs.

• H1 operating profit fell from ¥29.8 billion to a ¥974 million loss; ¥3.5 billion in fixed-cost reductions did not offset inventory-related declines.

• Full-year operating profit is forecast at a ¥15 billion loss versus ¥43.3 billion profit last year; sales decline, de-stocking and higher fixed costs weigh on profit, partly offset by FX.

• Cash and cash equivalents rose to ¥298,653 million at period end, up ¥70,549 million from March 2024.

Outlook and guidance

• FY2024 net sales guidance was cut from ¥480 billion to ¥450 billion; operating-profit guidance moved from ¥14 billion profit to a ¥15 billion loss, and net income is forecast at a ¥6 billion loss.

• Full-year automotive sales are expected to be flat year over year, industrial sales down 19.4%, and computer/storage sales up 3.3%.

• Industrial and consumer market recovery is expected to be slower than initially forecast, with production adjustments continuing into the next fiscal year.

• SiC sales above ¥110 billion, initially targeted for FY2025, are now expected one year later; capacity investment will be paced to demand.