Seibu Giken (6223) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 FY2025 declined 7.5% year-over-year to JPY 21,636 million, mainly due to lower desiccant dehumidifier sales in the US, South Korea, and Europe, offset by growth in VOC concentrators in Japan and Asia.

• Operating profit rose 11.5% year-over-year to JPY 3,253 million, driven by higher gross margins and reduced SG&A expenses, particularly lower freight costs.

• Net profit attributable to shareholders declined 1.2% year-over-year to JPY 2,414 million.

• The order intake for Q3 2025 was 124.6% of the previous year, and the order backlog at the end of September 2025 was 133.2% of the previous year, indicating strong future demand.

• Seibu Giken (Thailand) Co., Ltd. was newly included in the scope of consolidation during the period.

Financial highlights

• Net sales: JPY 21,636 million (down 7.5% YoY).

• Operating profit: JPY 3,253 million (up 11.5% YoY).

• Net profit attributable to shareholders: JPY 2,414 million (down 1.2% YoY).

• EBITDA: JPY 3,954 million (up 9.4% YoY); EBITDA margin improved to 18.3%.

• Gross profit margin increased to 36.9% from 34.0% YoY; gross profit for the nine months was JPY 7,975 million, nearly flat YoY.

Outlook and guidance

• FY2025 net sales forecast revised to JPY 33,727 million (up 5.2% YoY), with operating profit expected at JPY 3,858 million (down 4.3% YoY).

• Net profit forecast at JPY 3,136 million (down 6.0% YoY).

• Sales in Japan expected to rise, while China and Europe face headwinds from economic slowdown and project delays.

• Dividend payout ratio targeted at 40% or more; FY2025 annual dividend expected at JPY 70 per share, unchanged from the previous year.

• Operating profit for the full year is projected at JPY 3,858 million, a 4.3% decrease from the previous year.