Seika (8061) Q2 2025 earnings summary

Executive summary

• Transaction value for 1H FY2025 rose 58.7% YoY to 153.68 billion yen, with net sales up 11.2% to 44.51 billion yen and operating profit up 42.4% to 2.92 billion yen.

• Ordinary profit nearly doubled YoY to 4.27 billion yen.

• Profit attributable to owners of parent surged 243.1% YoY to 5.02 billion yen, driven by gains from negative goodwill and sale of cross-shareholdings.

• Order backlog increased 15.6% from the previous fiscal year-end to 67.55 billion yen, reflecting strong recovery in Industrial Machinery and continued strength in Energy.

• Comprehensive income for the period was 4.08 billion yen, up 19.4% YoY.

Financial highlights

• Gross profit increased to 12.11 billion yen from 10.21 billion yen YoY.

• EPS for the period was 417.94 yen, up from 121.57 yen in the prior year.

• Free cash flow improved to 3.77 billion yen, mainly due to sale of cross-shareholdings.

• Total assets as of September 30, 2024, were 110.17 billion yen, down from 118.54 billion yen at March 31, 2024.

• Net assets increased to 45.90 billion yen from 43.18 billion yen at the previous fiscal year-end.

Outlook and guidance

• FY2025 net sales forecast at 93.0 billion yen (+7.1% YoY), operating profit at 5.7 billion yen (+2.1% YoY), and profit attributable to owners of parent at 7.1 billion yen (+58.4% YoY).

• EPS for the full year is projected at 591.43 yen.

• Dividend forecast for FY2024 raised to 210 yen per share, a 60 yen YoY increase.

• Gross sales for the full year are forecast at 282.0 billion yen, up 37.3% YoY.

• Medium-term management plan targets for operating profit already achieved ahead of schedule; upward revision under consideration.