THK (6481) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2025, increased 1.2% year-over-year to ¥268,227 million, driven by recovery in industrial machinery demand, especially in China and the US.

• Operating income declined 24.7% year-over-year to ¥9,728 million, impacted by structural reform costs and U.S. tariffs.

• Profit attributable to owners of the parent fell 42.8% year-over-year to ¥5,254 million, reflecting higher costs and equity-method losses.

• Comprehensive loss of ¥1,715 million, compared to a comprehensive income of ¥14,482 million in the prior year period, mainly due to negative foreign currency translation effects.

Financial highlights

• Gross profit was ¥60,012 million, nearly flat year-over-year, with a gross margin of 22.4%.

• Basic earnings per share dropped to ¥46.38 from ¥74.96 year-over-year.

• Total assets decreased to ¥525,086 million from ¥567,418 million at the previous year-end.

• Total equity declined to ¥320,556 million, with equity attributable to owners at ¥316,592 million.

Outlook and guidance

• Full-year 2025 revenue forecast is ¥360,000 million, up 2.1% year-over-year.

• Operating income projected at ¥16,000 million (down 7.8%), and profit attributable to owners at ¥10,000 million (down 4.2%).

• Dividend per share projected at ¥246.00 for 2025, based on an 8% dividend on equity policy.