Toyo Tanso (5310) Q2 2025 earnings summary

Executive summary

• Net sales for H1 FY2025 declined 12.6% year-over-year to ¥22,980 million, with operating profit down 33.9% and profit attributable to owners of parent down 48.0%.

• The downturn was driven by lower volumes, unfavorable product mix, and increased fixed and depreciation costs, with weak demand in semiconductor, EV, and automotive sectors.

• All major product segments and regions experienced sales declines, particularly in electronics applications due to ongoing semiconductor and EV market corrections.

• The company focused on high-value-added solutions and cost competitiveness to address market changes.

Financial highlights

• Operating profit margin fell to 16.7% from 22.1% year-over-year.

• Ordinary profit dropped 45.8% year-over-year to ¥3,789 million.

• Basic EPS decreased from ¥245.89 to ¥127.85 year-over-year.

• Cash and cash equivalents at period end were ¥9,953 million, down from ¥14,652 million at the start of the year.

• Gross profit for the first half was ¥8,301 million, down from ¥10,210 million year-over-year.

Outlook and guidance

• Full-year FY2025 net sales forecast revised down to ¥48,000 million, a 9.6% decrease year-over-year and 7.7% below previous forecast.

• Operating profit expected to decline 38.7% year-over-year, with continued weakness in semiconductor and EV-related demand.

• Market recovery for semiconductors and SiC applications now expected later than initially planned.

• Dividend per share to be maintained at ¥145 despite lower profits.

• The company plans to focus on new applications and cost control to mitigate market headwinds.