Alps Alpine (6770) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2025, rose 3.1% year-over-year to ¥505.7 billion, with operating income up 89% to ¥21.2 billion, driven by strong component and mobility business performance.

• Profit attributable to owners of parent was ¥13.2 billion, a significant increase from ¥1.0 billion a year earlier.

• Upward revision of full-year sales and earnings forecast based on robust first-half results and postponed development expenses.

• Structural reforms, cost controls, and new product launches contributed to improved profitability.

• The business environment was marked by global uncertainty, yen appreciation, and US tariffs, but stabilization in automotive and robust demand in mobile and consumer markets supported results.

Financial highlights

• Ordinary income rose 201.6% year-over-year to ¥24.7 billion, aided by a ¥5.5 billion share of profit from equity-method affiliates, mainly due to real estate securitization.

• Basic earnings per share increased to ¥65.19 from ¥4.93 year-over-year.

• Comprehensive income reached ¥24.6 billion, reversing a loss of ¥7.9 billion in the prior year.

• Q2 sales and operating income exceeded July 31 forecast.

• FX losses were recorded, but equity in earnings of affiliates increased.

Outlook and guidance

• Full-year FY2025 sales forecast revised upward to ¥975.0 billion, with operating income forecast at ¥32.0 billion and profit attributable to owners of parent of ¥17.0 billion.

• Exchange rate assumption for 2H changed to USD/JPY 145, EUR/JPY 170, CNY/JPY 20.5.

• Tariff payments expected to be lower than originally planned.

• Market conditions assumed to remain stable; European semiconductor risk not yet reflected.

• Earnings forecasts remain sensitive to FX and market demand.