Valqua (7995) Q2 2025 earnings summary

Executive summary

• Net sales for 1-2Q FY3/2025 were ¥30,097 million, down from ¥31,182 million year-over-year.

• Operating profit declined to ¥2,924 million from ¥3,874 million year-over-year.

• Profit attributable to owners fell to ¥1,998 million from ¥2,698 million year-over-year.

• Earnings per share decreased to ¥113.61 from ¥153.68 year-over-year.

• Comprehensive income declined to ¥2,926 million from ¥3,294 million year-over-year.

Financial highlights

• Gross profit margin remained stable at 40.1% for 1-2Q FY3/2025.

• Operating profit margin dropped to 9.7% from 12.4% year-over-year.

• Free cash flow improved to ¥1,607 million from negative ¥912 million year-over-year.

• Net cash provided by operating activities rose to ¥3,357 million from ¥1,038 million year-over-year.

• Equity ratio stood at 65.9% at the end of 2Q FY3/2025.

Outlook and guidance

• Annual dividend forecast maintained at ¥150 per share for FY3/2025.

• Target consolidated stockholder return ratio set at 50%.

• Full-year FY3/2025 forecast: net sales ¥62,500 million, operating profit ¥6,500 million, ordinary profit ¥6,500 million, net profit ¥5,000 million, and EPS ¥284.25.