SEIKOH GIKEN (6834) Q2 2025 earnings summary

Executive summary

• Achieved record high interim net sales and profits for the second quarter, driven by strong performance in the Optical Products Business and robust demand for data center-related products.

• Profits significantly exceeded plan due to sales of highly profitable products and increased demand for optical connectors.

• The company advanced its medium-term plan, focusing on customer engagement, new product development, manufacturing improvements, and sustainability.

Financial highlights

• Net sales for the interim period rose 15.2% year-over-year to ¥9,062 million, marking a record high.

• Operating profit surged 219.1% year-over-year to ¥1,030 million.

• Ordinary profit increased 120.8% year-over-year to ¥1,046 million.

• Net income jumped 155.9% year-over-year to ¥772 million.

• Orders received grew 34.4% year-over-year to ¥9,918 million; order backlog up 74.4% to ¥3,633 million.

• Gross profit increased to ¥3,149 million from ¥2,144 million year-over-year.

• Net profit per share for the period was ¥84.58, up from ¥33.08 a year earlier.

• Comprehensive income for the period was ¥1,368 million, up from ¥700 million year-over-year.

Outlook and guidance

• Full-year sales forecast revised up to ¥18,000 million (+14.0% year-over-year).

• Full-year operating profit projected at ¥2,000 million (+90.1% year-over-year).

• Net profit forecasted at ¥1,500 million (+97.1% year-over-year).

• Net profit per share for the full year is forecast at ¥164.25.

• Dividend forecast for the year is ¥60.00 per share.

• Data center-related demand expected to remain strong in the second half.