SPK (7466) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue rose 10.9% YoY to ¥16,669m, supported by strong export demand, price revisions and higher machinery demand.

• Operating profit fell 18.2% to ¥804m, with higher costs and prior-year subsidiary special demand weighing on the comparison; net income attributable to owners declined 9.5% to ¥631m.

• Launched UPGRADE SPK!, a mid-term plan targeting global mobility business expansion by 2030.

Financial highlights

• Ordinary profit was ¥890m, down 13.9% YoY; operating margin declined to 4.8% from 6.5%.

• EPS was ¥62.89, down from ¥69.47 YoY; comprehensive income rose 4.6% to ¥781m.

• Gross profit increased to ¥3,035m from ¥2,805m YoY, while rising raw material and energy costs pressured margins.

Outlook and guidance

• FY2025 forecast: revenue ¥67,000m (+5.8% YoY), operating profit ¥3,200m (+1.7%), ordinary profit ¥3,420m (+1.9%) and net income ¥2,400m (+0.3%).

• Q1 progress was 24.9% of revenue, 25.1% of operating profit, 26.0% of ordinary profit and 26.3% of net income plans; guidance was unchanged and described as broadly on track.

• FY2025 dividend forecast is ¥60 per share, up from ¥50 in FY2024.

• Forecasts depend on current information and assumptions and may vary with economic, global, tax, regulatory and other risks.