Aisin (7259) Q2 2025 earnings summary

Executive summary

• Revenue and operating profit declined year-over-year in the first half of FY2025, mainly due to lower sales volumes in Europe and China and increased investments in human capital and future growth initiatives.

• Profit attributable to owners of the parent dropped 88.4% to ¥8.0 billion, and comprehensive income for the period was negative ¥150.5 billion, a significant reversal from the previous year's ¥265.4 billion.

Financial highlights

• Q2 revenue was ¥2,352.5 billion, down 4.2% year-over-year; operating profit was ¥56.1 billion, down 38.1%.

• Profit before income taxes fell 81.9% to ¥19.5 billion; profit for the period attributable to owners dropped 88.4% to ¥8.0 billion.

• Full-year revenue forecast revised down to ¥4,800.0 billion and operating profit to ¥200.0 billion.

• Annual dividend forecast maintained at ¥180 per share; 3-for-1 stock split executed on October 1, 2024.

• Cash and cash equivalents at period end were ¥474.3 billion, down from ¥527.2 billion at the previous year-end.

Outlook and guidance

• Full-year revenue and operating profit forecasts were revised downward due to market conditions and sales volume declines.

• Earnings per share forecast is ¥126.71, post stock split.

• Forecasts are based on exchange rate assumptions of 146 yen/USD and 20.6 yen/CNY.

• Focus remains on expanding electrified product sales, strengthening competitiveness, and reinforcing group management.

• Stable and continuous shareholder returns are prioritized for the medium to long term.