THK (6481) Q2 2025 earnings summary

Executive summary

• Consolidated revenue for the first half of fiscal 2025 decreased by 2.0% year-over-year to ¥176.2 billion, with industrial machinery showing recovery but automotive and transportation remaining flat.

• Operating income dropped 26.4% year-over-year to ¥6.1 billion, impacted by cost hikes, sales mix, and a stronger yen.

• Profit attributable to owners of the parent declined 48.3% to ¥3.7 billion, affected by structural reform costs and increased U.S. import tariffs.

• Revenue exceeded the initial plan by ¥2.9 billion, but operating income fell short by ¥0.8 billion due to higher U.S. import tariffs.

• Comprehensive loss for the period was ¥9,364 million, compared to a comprehensive income of ¥42,305 million a year earlier.

Financial highlights

• Revenue increased in China, Asia, and other regions, but decreased in Japan, the Americas, and Europe year-over-year.

• Operating income margin declined to 3.5% from 4.7% year-over-year.

• Total assets decreased to ¥515.5 billion from ¥567.4 billion at the previous year-end.

• Equity attributable to owners of the parent dropped to ¥323.1 billion, with a significant decrease in foreign currency translation reserve.

• Cash and cash equivalents declined by ¥36.8 billion to ¥101.5 billion as of June 30, 2025.

Outlook and guidance

• Full-year 2025 revenue forecast is ¥363.5 billion (+3.0% year-over-year), with operating income projected at ¥23.5 billion and profit attributable to owners of the parent at ¥18.0 billion.

• Profit per share for the year is forecast at ¥148.14.

• Management maintains the fiscal 2025 plan, expecting to offset U.S. tariff impacts by reviewing sales prices and cost reductions.

• No changes have been made to previously announced forecasts.

• Initiatives to achieve ROE over 10% are underway, targeting fiscal 2027–2029 for realization.