Seiko Epson (6724) Q2 2025 earnings summary

Executive summary

• Q2 FY2024 revenue rose 4.3% YoY to ¥337.5B, with business profit up 211.9% to ¥27.5B, driven by strong ink sales and cost reductions despite sluggish projector demand.

• H1 revenue increased 5.6% YoY to ¥674.2B, led by Printing Solutions and favorable FX rates.

• Business profit more than doubled to ¥51.0B (+108.9% YoY), as prior-year inventory reductions no longer weighed on results.

• Profit before tax and net profit fell due to foreign exchange losses from yen appreciation.

• Fiery, LLC acquisition announced to accelerate digitalization in commercial and industrial printing; not yet reflected in outlook.

Financial highlights

• Q2 revenue: ¥337.5B (+4.3% YoY); business profit: ¥27.5B (+211.9% YoY); operating profit: ¥12.4B (+51.7% YoY).

• H1 revenue: ¥674.1B (+5.6% YoY); H1 business profit: ¥51.0B (+108.9% YoY).

• Q2 EPS: ¥12.50 (vs. ¥21.99 last year); H1 EPS: ¥70.43 (vs. ¥82.88 last year).

• Gross profit increased to ¥245.7B from ¥213.6B YoY.

• Total comprehensive income dropped to ¥8.1B from ¥72.9B YoY, mainly due to negative exchange differences.

Outlook and guidance

• FY2024 revenue forecast revised to ¥1,340B (+2.0% YoY), down ¥30B from prior outlook due to yen appreciation and expected declines in visual communications.

• Business profit outlook maintained at ¥85B (+31.3% YoY), with cost reductions offsetting lower revenue.

• Net profit forecast lowered to ¥47B (-10.7% YoY); EPS forecast at ¥143.69.

• Outlook excludes impact of Fiery acquisition; risks include further price competition and weak projector demand.