Teikoku (6333) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue was ¥6,940 million, up 0.9% YoY; operating income rose 12.1% to ¥1,290 million, while net income attributable to owners fell 7.5% to ¥819 million.

• FY2025 guidance remains unchanged at ¥29,580 million revenue and ¥4,750 million operating income; the electronics business is scheduled to cease by December 2024.

Financial highlights

• Gross profit increased 11.6% to ¥3,141 million; gross margin rose to 45.3% from 40.9%.

• SG&A rose 11.3% to ¥1,850 million; operating margin improved to 18.6% from 16.7%.

• Ordinary income increased 15.2% to ¥1,613 million; EPS was ¥46.56 versus ¥48.88 a year earlier.

• Comprehensive income rose to ¥1,457 million from ¥1,266 million.

Outlook and guidance

• FY2025 forecasts: revenue ¥29,580 million, up 1.2%; operating income ¥4,750 million, down 2.7%; ordinary income ¥4,960 million; net income ¥2,870 million, down 8.9%.

• Guidance includes ¥654 million of special losses from the electronics business exit; higher SG&A and exit costs are expected to weigh on earnings.

• High pump orders support expected revenue growth; the first half is expected to remain firm, China to weaken in the second half, and the US to remain firm.

• Full-year EPS is forecast at ¥163.04; annual dividend forecast is ¥82 per share, down from ¥92 in FY2024.