Toshiba Tec (6588) Q2 2025 earnings summary

Executive summary

• Net sales, operating profit, ordinary profit, and net profit all exceeded the same period last year, with net sales up 10% to ¥289,172 million, driven by strong POS and MFP sales and favorable foreign exchange rates.

• Both Retail and Workplace Solutions segments increased net sales and operating profit year-over-year.

• Extraordinary income from business transfers, including MFP, auto ID, and inkjet head businesses, boosted net profit to ¥26,608 million.

• Capital adequacy ratio improved, reaching 30.7% due to higher net profit.

• Interim dividend of ¥20 per share was declared, in line with previous forecasts.

Financial highlights

• Net sales rose to ¥289,172 million, up ¥25.5 billion year-over-year.

• Operating profit increased to ¥9,473 million (3.3% of sales), up 60% year-over-year.

• Ordinary profit reached ¥8,512 million, up 132% year-over-year.

• Net profit attributable to owners of parent surged to ¥26,608 million, up ¥24.4 billion, driven by extraordinary income.

• Free cash flow increased to ¥3,543 million in 1H FY2024 from ¥410 million in 1H FY2023.

Outlook and guidance

• FY2024 consolidated net sales forecast at ¥565,000 million, up 3% year-over-year.

• Operating profit forecast at ¥18,000 million (up 14%), ordinary profit at ¥15,000 million (up 36%), and profit attributable to owners of parent forecast at ¥24,000 million.

• Basic earnings per share for the year forecast at ¥453.23.

• Retail Solutions sales forecast revised up to ¥329,000 million; Workplace Solutions revised down to ¥240,000 million.

• Foreign currency exchange rates for 2H forecast: USD/JPY 145, EUR/JPY 155.