Totech (9960) Q2 2025 earnings summary

Executive summary

• Achieved record highs in net sales and operating profit for Q2 FY3/25, with net sales rising 7.3% YoY to ¥68,343 million, driven by strong construction demand and steady growth in both product sales and construction segments.

• Operating profit surged 61.9% YoY to ¥5,856 million, ordinary profit up 56.6%, and profit attributable to owners up 70.2%.

• Orders received increased 5.5% YoY and order backlog rose 9.4% YoY, supporting future growth.

• Gross profit margin and operating profit margin improved across all group companies.

• Comprehensive income increased 23.9% YoY to ¥4,888 million.

Financial highlights

• Q2 FY3/25 net sales: ¥68.3bn (+7.3% YoY); operating profit: ¥5.8bn (+61.9% YoY); operating margin: 8.6% (+2.9ppt YoY).

• Ordinary profit: ¥6.3bn (+56.6% YoY); profit attributable to owners: ¥4.5bn (+70.2% YoY).

• Gross profit increased to ¥18,755 million from ¥15,387 million YoY.

• Basic earnings per share was ¥110.14, reflecting a 3-for-1 stock split.

• Equity ratio improved to 56.8% from 53.2% at the previous fiscal year-end.

Outlook and guidance

• Full-year forecasts revised upward: net sales ¥146.0bn (+3.7% YoY), operating profit ¥12.2bn (+23.2%), ordinary profit ¥13.0bn (+22.8%), profit attributable to owners ¥9.0bn (+28.5%).

• Basic earnings per share forecast at ¥218.73 for the fiscal year ending March 31, 2025.

• Dividend forecast revised to ¥88.00 per share post-stock split.

• Business environment remains uncertain due to rising costs and logistics, but sales and profit growth targeted via business expansion.