Sinfonia Technology (6507) Q2 2025 earnings summary

Executive summary

• H1 net sales rose 10.6% to ¥51,753 million; operating profit increased 96.5% to ¥5,743 million and profit attributable to owners of parent rose 83.1% to ¥4,279 million, a first-half record.

• H1 orders increased 34.8% to ¥72,300 million, supported by aerospace and space demand and a gradual recovery in semiconductor-related orders.

• Full-year forecasts were raised above prior guidance, with record profit levels projected.

Financial highlights

• H1 ordinary profit rose 76.2% to ¥5,927 million; gross profit increased to ¥13,531 million from ¥10,572 million.

• H1 earnings per share increased to ¥151.73 from ¥82.89 year over year.

• Free cash flow improved to positive ¥4,341 million from negative ¥1,307 million; period-end cash and equivalents were ¥8,043 million, down ¥1,393 million year over year.

• Overseas net sales grew 31.3% year over year, lifting the overseas sales ratio to 32.0%, up 5 percentage points.

Outlook and guidance

• Full-year forecasts: orders ¥140,000 million, net sales ¥116,000 million, operating and ordinary profit ¥14,500 million each, and profit attributable to owners of parent ¥10,000 million.

• Versus prior guidance, forecasts rose 12.0% for orders, 5.5% for net sales, 26.1% for operating and ordinary profit, and 25.0% for net income.

• Annual dividend forecast increased to ¥95 per share from ¥75; full-year forecasts include year-over-year growth of 13.0% in net sales, 44.8% in operating and ordinary profit, and 33.2% in net income.

• Forecast assumptions include a ¥140 per US dollar H2 exchange rate; FY R&D expense is ¥4,300 million and capital investment ¥4,800 million.