SMC (6273) Q3 2025 earnings summary

Executive summary

• Net sales for FY24 Q3 reached 590.4 billion yen, up 1.3% year-over-year, driven by favorable exchange rates and growth in Greater China, offsetting declines in Japan and North America.

• Operating profit declined 8.0% year-over-year to 142.7 billion yen, mainly due to lower production volume, higher cost ratios, and increased cost of sales.

• Net profit dropped 12.3% year-over-year to 120.3 billion yen, reflecting reduced operating efficiency and higher SG&A expenses.

• The business environment was impacted by global economic uncertainty, geopolitical risks, and sluggish demand in key industries.

Financial highlights

• Gross profit margin decreased to 46.1% from 48.1% year-over-year; gross profit for nine months was 272.0 billion yen, down from 280.1 billion yen.

• SG&A expenses rose 3.5% year-over-year, with increases in delivery and personnel costs.

• Ordinary profit declined 10.4% year-over-year to 166.2 billion yen, mainly due to lower foreign exchange gains.

• Basic earnings per share for the period was 1,880.28 yen, compared to 2,128.98 yen in the prior year.

• Cash and deposits increased by 10.8% to 566.6 billion yen; equity ratio improved to 91.6%.

Outlook and guidance

• FY24 net sales forecast revised down to 788.0 billion yen, a 1.6% decrease from the previous forecast; operating profit expected at 191.0 billion yen.

• Net profit guidance lowered to 151.0 billion yen, down 9.6% from the prior forecast.

• Basic earnings per share forecast at 2,358.50 yen.

• Dividend per share maintained at 1,000 yen for the fiscal year ending March 31, 2025.