YAMATO KOGYO (5444) Q3 2025 earnings summary

Executive summary

• Group-wide sales volume for the nine months ended Q3 FY2025/3 was 4.07 million tons, down 4.5% year-over-year, reflecting weak demand and increased competition from Chinese steel exports.

• Net sales for the nine months ended December 31, 2024, rose 3.3% year-over-year to ¥126,248 million, but operating profit fell 27.3% to ¥9,281 million and profit attributable to owners of parent dropped 62.6% to ¥19,382 million due to challenging market conditions and impairment losses in the Middle East business.

• U.S. operations remained a stable profit source, while the new Indonesian business contributed positively.

• The company recorded a large equity loss from affiliates in the Middle East and decided to withdraw from this business segment.

Financial highlights

• Net sales: ¥126,248 million (+3.3% YoY); Operating profit: ¥9,281 million (–27.3% YoY); Ordinary profit: ¥38,049 million (–48.1% YoY); Profit attributable to owners of parent: ¥19,382 million (–62.6% YoY).

• Basic EPS for the period was ¥304.71, down from ¥814.13 in the prior year.

• Comprehensive income fell sharply to ¥25,874 million from ¥101,809 million a year earlier.

• Cash and cash equivalents at period end decreased to ¥82,194 million, down ¥86,500 million from the previous year-end.

• Capital adequacy ratio stood at 83.0%, down 2.9pp year-over-year.

Outlook and guidance

• Full-year forecast for FY2025: Net sales ¥169,000 million (+3.4% YoY), operating profit ¥11,000 million (–36.4% YoY), ordinary profit ¥52,000 million (–47.6% YoY), profit attributable to owners of parent ¥28,000 million (–60.0% YoY), and basic EPS ¥443.51.

• The company revised its forecasts downward due to impairment losses in the Middle East and expects continued global steel market softness and intense competition from Chinese exports.

• Segment forecasts indicate continued challenges in Japan and Thailand, with Indonesia expected to recover as government budgets are implemented.

• No change to the year-end dividend forecast; commemorative dividends included.