Azbil (6845) Q3 2025 earnings summary

Executive summary

• Orders received, net sales, and operating income rose year-over-year, driven by strong BA business and a gain from the Azbil Telstar sale.

• Net income attributable to owners of parent surged due to the 7.6B yen gain from the transfer of Azbil Telstar S.L.U. (ATL).

• Fourth consecutive year of revenue and profit growth expected, despite ATL exclusion and FA market delays.

• Medium-term plan targets for FY2024 are expected to be exceeded, with ongoing strategic investments.

• 4-for-1 stock split effective October 1, 2024, impacting per-share metrics and dividend calculations.

Financial highlights

• Orders received: 231.1B yen (+3.5% YoY); Net sales: 217.9B yen (+6.1% YoY); Operating income: 26.8B yen (+15.5% YoY).

• Net income attributable to owners of parent: 28.6B yen (+49.7% YoY), boosted by ATL sale.

• Gross margin improved 1.4pp to 43.1%; operating margin up to 12.3%; ordinary income up to 28.0B yen.

• Shareholders' equity ratio increased to 78.1% from 70.6% at the previous fiscal year-end.

• Overseas sales up 4.8% YoY, accounting for 23.6% of net sales.

Outlook and guidance

• FY2024 net sales forecast: 301.0B yen (+3.5% YoY); operating income: 40.2B yen (+9.1% YoY); net income: 38.0B yen (+25.8% YoY).

• Net income per share forecast (post-split) is 72.68 yen.

• BA segment outlook revised upward for both sales and profit; AA to maintain sales, LA profit to rise despite lower sales.

• Dividend to increase for 10th consecutive year; annual dividend planned at 88 yen/share, DOE at 5%.

• Record profits expected in all profit categories.