Amada (6113) Q2 2025 earnings summary

Executive summary

• Sales revenue for the first half of FY2024 was ¥184.5bn, down 1.3% year-over-year, with operating profit at ¥23.1bn, down 15%, and net income at ¥15.1bn, down 23.5%.

• Comprehensive income dropped to ¥10.3bn from ¥37.3bn a year earlier.

• Order backlog was gradually cleared, resulting in record Q2 revenue, though order intake decreased year-over-year.

• Domestic market improved, while North America and Europe achieved record or modest sales growth, aided by exchange rates.

Financial highlights

• Gross profit margin declined to 43.9% from 44.6% year-over-year; gross profit was ¥81.1bn, down from ¥83.5bn.

• SG&A expenses increased 3.1% to ¥58.2bn, with fixed costs up 5%.

• Inventory volume decreased by ¥12.4bn (-7.9%) year-over-year, with turnover at 4.2 months.

• Basic EPS for 1H FY2024 was ¥45.45, down from ¥57.15.

• Net cash provided by operating activities increased to ¥15.3bn from ¥8.5bn.

Outlook and guidance

• FY2024 revenue forecast is ¥405.0bn (+0.4% year-over-year), with operating profit expected at ¥53.0bn (-6.2%) and net income at ¥36.0bn (-11.4%).

• Orders for the full year are projected at ¥390.0bn (+2.3%).

• Dividend forecast remains unchanged at ¥62 per share, up from ¥60 the previous year.

• Basic EPS forecast for the year is ¥109.38.