Sankyu (9065) Q2 2025 earnings summary

Executive summary

• H1 FY2025 revenue and operating profit reached half-year records, with net sales of ¥299,098 million (+7.9%) and operating profit of ¥20,038 million (+18.5%).

• Plant Engineering drove growth, while Logistics profit declined amid weak China demand and slow ocean-container recovery.

• Full-year forecasts and the annual dividend forecast were raised; the 2026 medium-term plan is under review.

Financial highlights

• Ordinary profit rose 11.9% to ¥20,259 million; profit attributable to owners of parent increased 15.5% to ¥13,231 million.

• Gross profit increased to ¥34,359 million from ¥29,825 million, and basic EPS rose to ¥241.67 from ¥198.39.

• Operating margin increased to 6.7% from 6.1%; ordinary profit margin was 6.8% and net margin was 4.4%.

• Comprehensive income was ¥18,317 million, down 7.6% year over year.

Outlook and guidance

• FY2025 forecast: net sales ¥596,000 million (+5.8% YoY; +1.5% vs. prior forecast), operating profit ¥39,000 million (+10.7% YoY; +7.1% vs. prior), ordinary profit ¥39,500 million (+7.8% YoY; +5.3% vs. prior), and parent profit ¥27,000 million (+10.7% YoY; +8.0% vs. prior).

• Forecast operating margin is 6.5%; H2 revenue is ¥296.9 billion and operating profit ¥19.0 billion.

• Annual dividend forecast increased by ¥24 to ¥204 per share, split ¥102 for each half-year.

• FY2026 logistics profit target is under review, with actions intended to retain the 5.5% margin target; machinery targets are also being reconsidered after early achievement.