TOWA (6315) Q2 2025 earnings summary

Executive summary

• Net sales surged 28.8% year-over-year in the first half of FY2024, driven by strong semiconductor equipment demand in China and Korea, and record orders for compression equipment and molds.

• Profits at all stages increased significantly year-over-year due to improved product mix and higher net sales.

• Operating profit more than doubled year-over-year, with ordinary profit up 95.3% and net profit up 89.2%.

• Orders decreased 6.0% year-over-year, with a backlog of ¥29.3B at period end.

Financial highlights

• Net sales rose to ¥273.9B in FY2024 first half, up ¥61.3B (+28.8%) year-over-year.

• Operating profit reached ¥52.6B, more than doubling from the previous year.

• Net profit was ¥38.2B, a 2.0x increase year-over-year.

• Basic earnings per share for the period was ¥51.02, calculated post 3-for-1 stock split.

• Operating margin improved to 19.2% from 11.2% year-over-year.

Outlook and guidance

• FY2024 full-year net sales forecast remains at ¥600.0B, with operating profit projected at ¥126.0B and net profit at ¥88.3B.

• Full-year forecast maintained: net sales of ¥60,000 million (+18.9% YoY), operating profit of ¥12,600 million (+45.5% YoY), and profit attributable to owners of parent of ¥8,830 million (+37.0% YoY).

• Demand recovery for consumer goods and memory delayed to next fiscal year; sales to be concentrated in Q4 due to customer delivery schedules.

• Cutting-edge package-related demand, especially for generative AI, expected to remain steady.

• Forecasted basic earnings per share for the year is ¥117.73, reflecting the stock split.