Union Tool (6278) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 reached ¥18,247 million, up 15.5% year-over-year, with operating profit at ¥4,187 million, up 34.7% year-over-year, both setting record highs for the interim period.

• Profit attributable to owners of parent was ¥2,856 million, up 13.0% year-over-year, and EPS was ¥165.37.

• Strong demand in generative AI-related markets and rapid expansion in package boards for data center servers drove growth.

Financial highlights

• Gross profit increased to ¥7,511 million from ¥6,180 million year-over-year.

• Operating margin improved due to higher sales of high-value-added tools and better production efficiency.

• Total assets rose to ¥80,981 million as of June 30, 2025, from ¥78,863 million at the end of FY2024.

• Net assets increased to ¥74,107 million, with a net assets to total assets ratio of 91.5%.

• Cash and cash equivalents at period end were ¥17,485 million, down from ¥20,984 million a year earlier.

Outlook and guidance

• Full-year FY2025 net sales forecast revised to ¥37,500 million, up 15.0% year-over-year.

• Operating profit forecast at ¥7,900 million (+14.9%), ordinary profit at ¥7,900 million (+10.8%), and profit attributable to owners of parent at ¥6,000 million (+13.6%).

• Annual dividend forecast raised to ¥125.00 per share.