ShinMaywa Industries (7224) Q2 2025 earnings summary

Executive summary

• Achieved record-high 2Q orders received and net sales, with all segments except Industrial Machinery & Environmental Systems showing year-over-year revenue and profit growth.

• Operating profit increased 29.1% year-over-year to ¥5,723 million, exceeding internal plans, aided by favorable foreign exchange and product mix.

• Full-year earnings forecast revised: net sales lowered by ¥15,000 million, but profit guidance and dividend remain unchanged despite EV market slowdown and stagnation in overseas commercial aircraft.

• Comprehensive income declined 21.7% year-over-year to ¥4,115 million.

Financial highlights

• 2Q FY2024 orders received: ¥143.0B (+11.2% YoY); net sales: ¥124.0B (+6.5% YoY); operating profit: ¥5.7B (+29.1% YoY); ordinary profit: ¥5.6B (+14.7% YoY); net profit: ¥3.2B (+6.9% YoY).

• Outstanding orders at 2Q: ¥313.6B (+16.5% YoY).

• Basic earnings per share: ¥48.16 (up from ¥45.11 YoY).

• Exchange rate impact: USD/JPY 152.5 vs. 140.3 YoY.

Outlook and guidance

• FY2024 net sales forecast revised down to ¥270.0B (from ¥285.0B), but operating profit remains at ¥13.0B (+10.5% YoY); profit attributable to owners of parent forecast at ¥7.5B (+3.0% YoY).

• Orders received and profit forecasts unchanged; annual dividend per share forecast at ¥50 (DOE 3.1%).

• Each ¥1 depreciation in USD/JPY increases operating profit by ¥30M.