Sumitomo Heavy Industries (6302) Q1 2025 earnings summary

Executive summary

• Orders rose to JPY260.2 billion, up 18% or JPY39.1 billion year-over-year, with increases across all segments.

• Net sales declined to JPY241.5 billion, down 5% or JPY13.3 billion year-over-year, mainly due to a smaller backlog in semiconductor-related products and hydraulic excavators.

• Operating profit dropped to JPY11.2 billion, a decrease of 39% or JPY7.3 billion year-over-year, reflecting lower sales in key segments.

• Profit attributable to owners fell 52% to JPY6.5 billion.

• Segment reconfiguration implemented to streamline management and promote synergies.

Financial highlights

• Operating profit margin fell to 4.6% from 7.2% year-over-year.

• Ordinary profit was JPY10.0 billion, down 46% or JPY8.7 billion year-over-year.

• Profit attributable to owners: JPY6.5 billion (down 52% year-over-year).

• Comprehensive income: negative JPY9.4 billion (vs. positive JPY30.6 billion previous year).

• Shareholders' equity ratio declined to 49.8% from 50.8%.

Outlook and guidance

• FY2025 full-year net sales forecast at JPY1,090.0 billion, up 1.8% from JPY1,071.1 billion in FY2024.

• Operating profit forecast for FY2025 is JPY60.0 billion, up 8.9% from JPY55.1 billion in FY2024.

• Profit attributable to owners forecast: JPY28.0 billion, up 262.6% year-over-year.

• Orders expected to reach JPY1,130.0 billion for FY2025.

• No change to previously announced earnings forecast.