Tokyo Century (8439 ) Q2 2025 earnings summary

Executive summary

• Net income attributable to owners of parent rose 21.1% year-over-year to ¥43.1 billion, a record for Q1–Q2, supported by ¥4.9 billion in extraordinary income from share sales and improved segment performance.

• Ordinary income reached ¥63.7 billion, up 7.6% year-over-year, with operating income at ¥56.3 billion, and ROE at 9.1% annualized.

• Specialty Financing was the main driver of income growth, with Automobility also increasing and Environmental Infrastructure declining due to the absence of prior-year one-time gains.

• Revenues for the six months ended September 30, 2024, decreased 2.9% year-over-year to ¥665.9 billion, while gross profit rose 7.2% to ¥134.5 billion.

• Comprehensive income surged 45.4% year-over-year to ¥182.7 billion, reflecting significant translation adjustments.

Financial highlights

• EPS increased to ¥88.09, up 21.2% year-over-year, reflecting a 4-for-1 stock split.

• Shareholders’ equity rose 18.2% to ¥1,031.3 billion; segment assets increased 7.9% to ¥6,174.4 billion.

• Total assets increased 7.1% from March 31, 2024, to ¥6,917.9 billion; net assets rose 16.1% to ¥1,174.3 billion.

• Shareholders’ equity ratio improved to 14.9% from 13.5% at prior year-end.

• Interest-bearing debt increased 6.7% to ¥5,068.7 billion.

Outlook and guidance

• FY2024 net income forecast is ¥80.0 billion (progress: 53.9%), ordinary income forecast is ¥125.0 billion (progress: 51.0%).

• No revisions have been made to the previously announced forecast.

• Environmental Infrastructure and International Business are expected to catch up in the second half via gains on sales and improved profitability.