UT Group Co (2146) Q1 2025 earnings summary

Executive summary

• Achieved record-high quarterly sales of ¥44,164 million in 1Q FY3/2025, up 7.1% year-over-year, driven by workforce expansion and newly consolidated subsidiaries.

• Net profit attributable to owners surged 152.1% to ¥4,930 million, mainly due to extraordinary income of ¥5.9 billion from the sale of subsidiaries.

• Gross profit and EBITDA declined year-over-year, impacted by lower operating rates, increased SG&A expenses, and business mix changes.

• Segment structure was reorganized, with two new subsidiaries acquired and two divested.

Financial highlights

• Net sales rose 7.1% year-over-year to ¥44,164 million; EBITDA dropped 25.2% to ¥2,430 million; operating profit fell 31.1% to ¥1,922 million.

• Gross profit decreased 1.2% to ¥7,630 million; gross margin fell to 17.3%.

• Net profit attributable to owners jumped 152.1% to ¥4,930 million; EPS up 155.5% to ¥124.12.

• Comprehensive income reached ¥5,162 million (+156.6% YoY); net assets at ¥36,250 million; total assets at ¥72,916 million.

• Equity ratio at 39.4% (down from 40.0% at prior year-end).

Outlook and guidance

• FY3/2025 full-year net sales forecast at ¥215,000 million, up 28.7%; EBITDA forecast at ¥16,000 million (7.4% margin); operating profit at ¥13,600 million.

• Net profit forecast at ¥13,000 million, EPS expected to reach ¥327.01–¥327.46.

• Dividend payout ratio set at 60%, with DPS forecast at ¥164.81.

• Recovery in semiconductor-related demand expected in 2H; automotive demand remains moderate.

• Full-year guidance maintained despite mixed segment performance.