ROHM (6963) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2024 were ¥232.0 billion, down 3.0% year-over-year, with an operating loss of ¥0.9 billion, a sharp decline from the previous year's profit.

• Profit attributable to owners of parent dropped 94.5% year-over-year to ¥2.0 billion, mainly due to lower sales, higher costs, and foreign exchange impacts.

• EBITDA fell 35.8% to ¥39.3 billion.

• Automotive segment showed modest growth, while industrial and consumer segments declined; sales outside Japan decreased to 42.5%.

• Profitability was impacted by lower sales, increased fixed and labor costs, and higher depreciation.

Financial highlights

• Operating profit dropped to ¥-0.9 billion from ¥29.8 billion year-over-year; net income fell sharply to ¥2.0 billion from ¥37.3 billion.

• Gross margin and operating margin contracted as cost of sales rose 10.2% year-over-year, outpacing the 3.0% sales decrease.

• SG&A expenses increased 14.6% year-over-year to ¥57.7 billion.

• Net income per share was ¥5.36, down from ¥95.37 in the prior year period.

• Equity ratio decreased to 62.0% from 65.3% at the end of the previous fiscal year.

Outlook and guidance

• Full-year FY2024 net sales forecast revised down to ¥450.0 billion, a 3.8% decrease year-over-year; operating profit forecasted at ¥-15.0 billion.

• Profit attributable to owners of parent expected at a loss of ¥6.0 billion.

• Industrial segment expected to decline 19.4%, automotive to remain flat, and computers & storage to grow 3.3%.

• Market recovery in industrial equipment and consumer products expected to be slower than initially forecast; production adjustments to continue.

• Inventory adjustment and weak demand in key markets expected to persist into next fiscal year.