Takuma Co (6013) Q1 2025 earnings summary

Executive summary

• Orders received in Q1 FY2024 surged 209.7% year-over-year to ¥106.98 billion, driven by major municipal solid waste treatment plant projects and equipment improvement contracts, with significant growth in net sales and profits across most business segments, aided by a gain on sales of investment securities.

• Net sales increased 8.4% year-over-year to ¥32.33 billion, with operating profit up 63.6% to ¥1.87 billion, mainly due to a favorable EPC project mix.

• Profit attributable to owners of parent rose 123.8% year-over-year to ¥2.1 billion, supported by a gain on sales of investment securities.

Financial highlights

• Orders received: ¥106.98 billion (+209.7% YoY); order backlog: ¥557.27 billion (+17.1% YoY).

• Net sales: ¥32.33 billion (+8.4% YoY); operating profit: ¥1.87 billion (+63.6% YoY); operating margin: 5.8% (+2.0pt YoY).

• Ordinary profit: ¥2.23 billion (+45.3% YoY); EPS: ¥26.26 (+124.3% YoY).

• Capital adequacy ratio improved to 59.3% at Q1 FY2024 from 57.7% at FY2023 year-end.

• Net assets were ¥110.63 billion at Q1 FY2024.

Outlook and guidance

• FY2024 guidance unchanged: targeting record-high orders of ¥230 billion (+43.2% YoY), net sales of ¥143 billion (-4.1% YoY), and operating profit of ¥11.2 billion (+9.5% YoY).

• Annual dividend for FY2024 to be raised by ¥8 to ¥56 per share.

• Profit growth expected from higher gross profit in EPC and recurring revenue businesses, despite increased SG&A and R&D expenses.

• No changes to the previously announced full-year outlook as of May 14, 2024.