Toyota Boshoku Corporation (3116) Q1 2025 earnings summary

Executive summary

• 1Q FY2025 revenue rose 2.6% year-over-year to ¥488.0 billion, driven by higher volumes in the Americas and Asia and favorable foreign exchange, offsetting declines in Japan and China.

• Operating profit fell 24.7% year-over-year to ¥16.6 billion due to strategic human capital investments, increased overhead, and lower volumes, despite cost reductions and new product effects.

• Profit attributable to owners dropped 30.5% year-over-year to ¥8.6 billion; EPS was ¥48.73.

Financial highlights

• Revenue: ¥488.0 billion (+2.6% YoY); Operating profit: ¥16.6 billion (-24.7% YoY); Operating margin: 3.4%.

• Gross profit increased to ¥50.4 billion from ¥48.8 billion year-over-year.

• Comprehensive income rose 6.6% year-over-year to ¥32.1 billion.

• Net cash provided by operating activities was ¥38.6 billion, down from ¥53.6 billion year-over-year.

• EPS: ¥48.73 (down from ¥66.93 YoY).

Outlook and guidance

• FY2025 revenue forecast: ¥1,900.0 billion; operating profit: ¥68.0 billion (-13.5% YoY); profit attributable to owners: ¥43.0 billion (-25.7% YoY).

• Lower profits expected due to volume decreases in Americas, China, and Europe & Africa, and continued strategic investments.

• Annual dividend plan: ¥86 per share (¥43 interim, ¥43 year-end).

• Exchange rate assumptions: 1USD = ¥145, 1EUR = ¥160, 1THB = ¥4.0, 1CNY = ¥20.1.