Tsubakimoto Chain (6371) Q3 2025 earnings summary

Executive summary

• Net sales for FY2025-3Q rose 1.4% year-over-year to ¥209,401 million, while operating income declined 7.1% to ¥14,733 million.

• Net income increased 5.5% year-over-year to ¥15,772 million.

• For the nine months ended December 31, 2024, net sales rose 5.0% year-over-year to ¥206,610 million, with operating income up 10.5% to ¥15,863 million.

• The company remains focused on its Mid-term Management Plan 2025, emphasizing capital cost awareness, manufacturing strength, and new business development.

• Sales and operating income grew in Chain, Motion Control, and Mobility segments, but declined in Materials Handling.

Financial highlights

• Operating income margin decreased by 0.7 points to 7.0% year-over-year.

• Ordinary income fell 3.3% year-over-year to ¥17,768 million.

• Gross profit increased to ¥59,917 million from ¥56,858 million year-over-year.

• Basic earnings per share for the nine months was ¥143.06, calculated post-stock split.

• Total assets as of December 31, 2024, were ¥375,649 million, down ¥15,648 million from March 31, 2024.

Outlook and guidance

• Full-year net sales forecast revised up to ¥278,000 million, operating income to ¥22,200 million, ordinary income to ¥24,000 million, and net income to ¥21,000 million.

• Net income per share forecast for the full year is ¥201.86 post-stock split, or ¥605.58 pre-split.

• Dividend forecast for FY2025 is ¥240 per share pre-split, with a year-end dividend of ¥141 per share.

• The impact of Daido Kogyo Co., Ltd. as a new subsidiary is not yet included in forecasts.

• The outlook assumes exchange rates of 1 USD = 155 JPY and 1 Euro = 160 JPY for Q4.