TOKYO KEIKI (7721) Q2 2025 earnings summary

Executive summary

• Net sales for 2Q FY2024 rose 7.2% year-over-year to ¥20,582 million, driven by strong Marine Systems and Defense & Communications Equipment segments.

• Operating loss was significantly reduced to ¥105 million, an improvement of ¥294 million year-over-year.

• Profit attributable to owners of parent was ¥28 million, compared to a loss of ¥237 million year-over-year.

• Order backlog reached a record high of ¥54,750 million, mainly due to robust demand in Defense & Communications Equipment.

• Full-year forecasts were revised upward, with record-high operating profit expected.

Financial highlights

• Net sales increased by ¥1,382 million year-over-year in 2Q FY2024.

• Operating loss improved by ¥294 million year-over-year; ordinary profit turned positive at ¥28 million.

• Ordinary profit for the period was ¥63 million, compared to a loss of ¥153 million year-over-year.

• Basic earnings per share improved to ¥3.84 from a loss of ¥14.41 in the prior year period.

• Total assets as of September 30, 2024, were ¥69,734 million, up from ¥66,978 million as of March 31, 2024.

Outlook and guidance

• FY2024 net sales forecast revised to ¥58,300 million (+23.6% YoY); operating profit forecast at ¥4,100 million (+48.1% YoY).

• Ordinary profit forecast is ¥4,280 million, up 43.1% year-over-year.

• Profit attributable to owners of parent is expected to reach ¥3,090 million, a 35.7% increase year-over-year.

• Net income per share forecast is ¥188.08.

• Defense & Communications Equipment segment to see continued strong demand due to increased national defense budgets.