Tsugami (6101) Q2 2025 earnings summary

Executive summary

• Achieved record-high first-half revenue of ¥49,795 million, up 23.6% year-over-year and 7.1% above previous outlook, with operating profit rising 66.9% to ¥9,916 million and profit attributable to owners of parent up 119.6% to ¥4,813 million.

• Growth driven by strong performance in China, offsetting declines in Japan and India; overseas revenue ratio increased to 92.2%.

• Full-year revenue forecast revised upward to ¥97,000 million, a 15.6% increase year-over-year.

• Full-year operating profit forecast raised to ¥18,500 million, up 41.3% year-over-year.

• Profit attributable to owners of parent for 1H was ¥4,813 million, up 119.6% year-over-year.

Financial highlights

• 1H operating profit margin improved to 19.9% from 14.7% a year ago.

• Basic EPS for 1H was ¥101.96, up from ¥45.73 in the prior year; diluted EPS was ¥100.64.

• Cash and cash equivalents at period end were ¥27,588 million, down from ¥30,400 million at March-end.

• Net cash from operating activities in 1H was ¥1,808 million, down from ¥6,200 million in prior year.

• Gross profit margin improved, with gross profit at ¥16,744 million (vs. ¥11,026 million YoY).

Outlook and guidance

• Full-year profit attributable to owners of parent forecast at ¥8,000 million, up 48.8% year-over-year.

• Dividend forecast increased to ¥54 per share, up ¥6 from initial forecast.

• ROE (Return on Equity) forecast at 16% for FY24.

• Dividend payout ratio forecast at 31.8% for FY24.

• Total return ratio forecast at 60.0%.