Totech (9960) Q1 2025 earnings summary

Executive summary

• Achieved record-high Q1 sales and profits, driven by strong demand in redevelopment, carbon neutrality renovations, and data center projects, with delayed projects from the previous year contributing to a double-digit revenue increase.

• Net sales rose 14.4% year-over-year to ¥31,729 million for the three months ended June 30, 2024, with operating profit up 572.8% to ¥2,228 million and profit attributable to owners of parent up 681.2% to ¥2,002 million.

• Comprehensive income increased 40.6% year-over-year to ¥2,826 million.

• Core businesses (HVAC, Instrumentation, Energy solutions) and both domestic and overseas affiliates posted steady growth.

Financial highlights

• Net sales rose 14.4% year-over-year to 31.7 billion yen, with operating profit up 6.7 times to 2.2 billion yen.

• Ordinary profit reached 2.6 billion yen, and net profit hit a record 2.0 billion yen for Q1.

• Operating profit margin improved to 7.0%, up 5.8 percentage points year-over-year.

• Gross profit increased to ¥8,653 million from ¥6,334 million year-over-year, with gross profit margin up to 27.3%.

• Basic earnings per share for the quarter were ¥48.69, reflecting a 3-for-1 stock split.

Outlook and guidance

• Full-year FY3/25 forecast: net sales of 146.0 billion yen (+3.7%), operating profit of 10.5 billion yen (+6.0%), ordinary profit of 11.0 billion yen (+3.9%), and net profit of 7.5 billion yen (+7.1%).

• No changes to previously announced full-year guidance.

• Business environment expected to remain uncertain due to rising costs and logistics, but sales and profit growth targeted through business expansion.