Takasago Thermal Engineering (1969) Q2 2025 earnings summary

Executive summary

• Gross, operating, and ordinary profit margins reached record highs in 2Q FY2024, with profits growing for two consecutive terms.

• Net sales for the six months ended September 30, 2024, were ¥159,910 million, down 2.7% year-over-year, while operating profit rose 19.2% to ¥9,779 million and ordinary profit increased 20.3% to ¥11,134 million.

• Profit attributable to owners of parent grew 36.0% year-over-year to ¥8,192 million, reflecting improved profitability at order and installation stages.

• Orders received and orders carried forward hit record highs, with orders received surging 23.2% year-over-year to ¥200,582 million.

• The company is advancing its 2026 Medium-Term Management Plan, focusing on construction process transformation, green energy, and human capital investment.

Financial highlights

• 2Q FY2024 consolidated net sales: ¥159,910 million (down 2.7% YoY); gross profit: ¥26,683 million (up 15.6% YoY, margin 16.7%).

• Operating profit: ¥9,779 million (up 19.2% YoY, margin 6.1%); ordinary profit: ¥11,134 million (up 20.3% YoY, margin 7.0%).

• Net profit: ¥8,192 million (up 36.0% YoY, margin 5.1%).

• Earnings per share rose to ¥123.39 from ¥90.82 in the prior year period.

• Cash and cash equivalents at end-2Q FY2024: ¥44,939 million.

Outlook and guidance

• Full-year consolidated forecasts for FY2025: net sales ¥372,000 million (+2.4%), operating profit ¥28,500 million (+17.8%), ordinary profit ¥31,000 million (+18.5%), profit attributable to owners of parent ¥23,900 million (+21.9%), EPS ¥360.00.

• Orders received for the full year are forecast at ¥400,000 million.

• ROE target for FY2026 is approximately 12%.

• Dividend forecasts were revised upward to strengthen shareholder returns.

• No revisions to the most recent earnings or dividend forecasts.