Taikisha (1979) Q2 2025 earnings summary

Executive summary

• Orders received increased 0.8% year-over-year to ¥128.1 billion, driven by strong performance in Japan's Paint Finishing System and steady capital investment from manufacturers.

• Sales for the six months ended September 30, 2024, were ¥114.6 billion, down 12.1% year-over-year, with net sales and ordinary income both declining.

• Operating income decreased 15.5% year-over-year to ¥6,274 million.

• Profit attributable to owners of parent fell 14.4% year-over-year to ¥5,673 million.

• All key financial items exceeded internal forecasts for the quarter.

Financial highlights

• Net sales: ¥114.6 billion (down 12.1% YoY); Ordinary income: ¥7.0 billion (down 12.6% YoY); Profit attributable to owners: ¥5.6 billion (down 14.4% YoY).

• EPS: ¥173.85 (down from ¥199.51 YoY).

• Gross profit margin improved to 15.7% from 13.8% YoY.

• Equity capital ratio improved to 60.8% from 54.0% as of March 31, 2024.

• Orders received exceeded forecast by ¥10.1 billion; net sales exceeded by ¥4.6 billion; ordinary income exceeded by ¥2.1 billion.

Outlook and guidance

• FY2024 full-year orders received forecast maintained at ¥280.0 billion; net sales forecast at ¥258.0 billion.

• Ordinary income forecast for FY2024 is ¥15.0 billion; profit attributable to owners forecast at ¥10.2 billion.

• ROE expected at 7.0% for FY2024, with a target of 8.0% in the next Mid-Term Business Plan.

• Dividend forecast for FY2025 is ¥144 per share, up from ¥131 in FY2024.

• Operating income forecast is ¥14.0 billion, up 23.4% year-over-year.