Teikoku (6333) Q2 2025 earnings summary

Executive summary

• H1 FY Mar-2025 revenue rose 0.5% to ¥14,383m and operating profit rose 4.2% to ¥2,710m; net income fell 31.4% to ¥1,424m after a ¥404m electronics-exit loss.

• Pump sales and profit grew despite weaker China demand; a high order backlog supports the FY revenue plan, while higher SG&A and exit costs weigh on earnings.

Financial highlights

• Gross profit rose 6.0% to ¥6,397m; cost of sales fell 3.5% to ¥7,986m, while SG&A increased 7.4% to ¥3,687m.

• Ordinary profit declined 8.1% to ¥2,752m; profit attributable to owners of parent fell 31.4% to ¥1,424m.

• EPS was ¥80.89, down from ¥114.41 year-over-year; comprehensive income was ¥2,683m, down from ¥3,047m.

• Total assets were ¥44,249m and net assets ¥34,263m, up from ¥42,040m and ¥32,466m at FY Mar-2024 year-end; equity ratio was 76.1%, versus 75.8%.

Outlook and guidance

• FY Mar-2025 forecast unchanged: revenue ¥29,580m (+1.2%), operating profit ¥4,750m (−2.7%), ordinary profit ¥4,960m (−8.9%), and net income ¥2,870m (−8.2%).

• Forecast includes ¥654m of special losses from the electronics-business exit; pump growth is expected to offset discontinued electronics revenue, while SG&A and exit costs pressure profit.

• Pump forecast: revenue ¥28,300m (+3.7%) and operating profit ¥4,910m (+0.1%); electronics forecast: revenue ¥1,040m and operating loss ¥180m, with operations scheduled to stop in Dec-2024.

• FY pump revenue outlook by region: Japan ¥8,400m (−1.2%), Europe/Americas ¥7,490m (+18.0%), and Asia ¥12,410m (−0.3%).

• Full-year EPS forecast is ¥163.04; interim dividend was ¥46 per share and full-year dividend forecast is ¥92 per share.