Seibu Giken (6223) Q2 2025 earnings summary

Executive summary

• Q2 FY12/25 net sales declined 5.6% year-over-year to JPY 13,897 million, with growth in Japan and Asia offset by declines in Europe, the US, and Korea due to fewer large projects.

• Operating profit rose 24.6% year-over-year to JPY 2,031 million, driven by high-margin projects and lower costs.

• Net profit attributable to shareholders increased 7.6% year-over-year to JPY 1,496 million.

• Comprehensive income dropped 67.2% to JPY 977 million due to foreign currency effects.

• Order intake and backlog both increased over 40% year-over-year, reflecting strong demand, especially for VOC concentrators and total engineering projects.

Financial highlights

• Net sales: JPY 13,897 million (down 5.6% year-over-year).

• Operating profit: JPY 2,031 million (up 24.6% year-over-year).

• Net profit attributable to shareholders: JPY 1,496 million (up 7.6% year-over-year).

• EBITDA: JPY 2,494 million (up 19.3% year-over-year); EBITDA margin improved to 18.0%.

• Gross profit margin increased to 36.9% from 33.4% year-over-year.

Outlook and guidance

• FY2025 net sales forecast: JPY 34,632 million (up 8.0% year-over-year).

• Operating profit forecast: JPY 3,552 million (down 11.9% year-over-year) due to margin pressure in core business.

• Profit attributable to owners of parent projected at JPY 3,111 million, a 6.7% decrease year-over-year.

• Annual dividend for FY2025 expected at JPY 70; targeting a 40%+ payout ratio.

• No change to guidance since February 2025.